Locate Technologies to convert PURE royalty into equity

30/06/2026 14:51 NZST, GENERALP

Locate Technologies Limited (NZX: LOC) (Locate Technologies or the Company) today announced that it has agreed with PURE Asset Management Pty Ltd as trustee for The Income and Growth Fund (PURE), the Company's debt funder, to buy out the remaining Locate2u revenue royalty and settle it through the issue of ordinary shares in the Company.

Under existing arrangements, the Company paid PURE a royalty of 2.5% of Locate2u monthly revenue. Originally capped at A$0.75m, through quarterly payments this has been reduced to A$0.56m.

The Company will issue 10,000,000 new ordinary shares to PURE in full settlement of the royalty. That equates to an implied issue price of about 6.8 cents per share, a significant premium to the recent market price of 4.7 cents. The obligation is in Australian dollars and is translated to New Zealand dollars at the rate fixed in the conversion deed.

The issue is within the Company's 15% annual placement capacity under the NZX Listing Rules and does not require shareholder approval. PURE is not a related party of the Company. Following the issue, PURE will become a substantial product holder and will file the required disclosure.

Commentary

Commenting on the transaction, Locate Technologies Chief Executive Officer Steve Orenstein said: “Converting the remaining royalty into equity removes a claim on Locate2u's revenue as the platform grows, simplifies our funding arrangements, improves cashflow and further aligns PURE with our shareholders. It is an excellent outcome for both parties and illustrates the faith PURE has in the future of the Company.

Authorisation

This announcement was authorised for release by the Board of Locate Technologies Limited.

For further information:

Steve Orenstein

CEO

Locate Technologies Limited

investors@locatetech.nz