Capital Raise - Update

• Babylon Pump & Power Ltd has raised $0.4 million in convertible loans from major shareholders
• A non-renounceable rights issue is planned to raise up to $12.7 million
• The rights issue aims to meet working capital needs, satisfy loan conditions, and reduce debt levels

Babylon Pump & Power Ltd has raised $0.4 million in convertible loans from entities associated with Non-Executive Chairman Jamie Cullen and 8.7% shareholder Byron Ynema, with an option to raise up to $1.0 million more. These funds are intended for short-term working capital while the company undertakes a capital raise. The company has also resolved to undertake a pro rata non-renounceable rights issue to raise up to $12.7 million through the issue of up to 254 million shares at $0.05 per share. The rights issue aims to overcome a working capital shortfall, satisfy conditions imposed by the company's revised loan facilities with NAB, and materially reduce the company's debt levels.