• ARC Funds Limited has entered into a $5 million Capital Placement Facility with Securities Vault Pty Ltd.
• The facility provides the Company with flexible access to standby equity capital over an initial 12-month term.
• ARC retains complete discretion over whether, when and how much capital is raised under the facility.

ARC Funds Limited (ASX:ARC) has entered into a Capital Placement Facility Agreement with Securities Vault Pty Ltd, providing the Company with access to up to $5 million of standby equity capital over an initial 12-month period. The facility has been established to provide ARC with additional funding flexibility to support the Company's capital management strategy, strategic investments, acquisitions, working capital requirements and other general corporate purposes. The Board considers the facility to be a prudent capital management initiative that enhances the Company's financial flexibility without requiring an immediate capital raising. Following execution of the Facility Agreement, ARC has issued 10,000,000 fully paid ordinary shares to Securities Vault pursuant to its available placement capacity under ASX Listing Rules 7.1 and/or 7.1A. These shares form the initial tranche available under the facility and may only be sold by Securities Vault following receipt of a drawdown notice from the Company specifying, among other matters, the number of shares to be sold and the applicable minimum sale price. The Company has not received any proceeds from the facility as at the date of this announcement. Funds will only be received progressively as Securities Vault sells shares in accordance with drawdown notices issued by the Company. Net proceeds, after deduction of the agreed facility fee, will be remitted to ARC in accordance with the Facility Agreement. The Company is under no obligation to utilise the balance of the facility and may determine, at its sole discretion, whether any future drawdowns are undertaken.