Unith Ltd (UNT) Initiates $1.75 Million Pro Rata Entitlement Offer with Free Listed Options Attached

Entitlement Offer Structure and Pricing Details

Unith Ltd’s capital raising is structured as a non-renounceable pro rata entitlement offer available exclusively to eligible shareholders. The issue price is fixed at $0.008 per new share. Shareholders receive the right to subscribe for one new share for every seven shares held at the record date. For instance, a shareholder holding 700 shares would be entitled to subscribe for 100 new shares at the set price. This structure allows existing shareholders to maintain their proportional ownership, contingent upon their participation.

In addition to the new shares, shareholders who accept their entitlement will receive free-attaching listed options at a ratio of one option for every two new shares issued. These options are listed on the ASX and trade independently from the underlying shares, providing shareholders with potential upside exposure without additional capital outlay. The prospectus, dated 20 July 2026, was lodged with ASIC without an exposure period applying.

Capital Raise Target and Use of Funds

The entitlement offer aims to raise up to approximately $1,751,500 before deducting associated costs. This represents the maximum gross proceeds if all eligible shareholders fully subscribe at the $0.008 issue price. The company has not disclosed specific plans for the use of proceeds within the prospectus. Investors seeking detailed information on capital deployment should consult the full prospectus or contact Unith Ltd directly via its Australian registered office.

The stated amount reflects gross proceeds; net proceeds will be lower after offer-related expenses. The prospectus confirms that "no exposure period applies to the Offers," indicating the capital raise is conducted under section 713 of the Corporations Act as a continuously quoted security, simplifying the process compared to an IPO.

Secondary Offer Components: Shortfall Placement, Debt Conversion, and Broker Offer

Besides the primary entitlement offer, Unith Ltd includes three secondary offers to allocate shares not taken up by eligible shareholders or issued through other means. These are the Shortfall Placement, Debt Conversion Offer, and Broker Offer. Detailed terms, pricing, and eligibility criteria for these secondary offers are outlined in the full prospectus. These mechanisms provide flexibility to allocate shares beyond the pro rata entitlement.

The Shortfall Placement enables the company to place unsubscribed shares with other investors identified by Unith or its advisers. The Debt Conversion Offer allows conversion of existing debt instruments into equity, aiding capital structure management. The Broker Offer facilitates broker participation in subscriptions, potentially earning commissions. Applications must be submitted via the Entitlement and Acceptance Form attached to or accompanying the prospectus or downloaded from the Automic investor portal at https://portal.automic.com.au/investor/home.

Offer Timeline, Closing Date, and Eligibility Criteria

The entitlement offer closes at 5:00pm AEST on 14 August 2026. Applications must be received before this deadline. The company reserves the right to close the offer earlier or extend it without notice. Eligible shareholders are those registered at the record date with addresses in Australia, New Zealand, Spain, or the Netherlands. Shareholders outside these jurisdictions are excluded due to regulatory and cost considerations.

Eligible shareholders must complete the Entitlement and Acceptance Form provided with the prospectus to subscribe. The form details each shareholder’s pro rata entitlement. Payments can also be made via BPAY or electronic funds transfer without submitting the form, with payment constituting acceptance of the offer terms. The prospectus dated 20 July 2026 expires 13 months after lodgement, meaning no shares will be issued under this prospectus after 20 August 2027.

Application Procedures and Access to Offer Documents

Unith Ltd has made the prospectus available electronically on its website at www.unith.ai. Eligible shareholders receiving the electronic prospectus may request a free paper copy and Entitlement and Acceptance Form from the company’s Australian registered office. The electronic prospectus is only distributed within Australia; overseas eligible shareholders may need to arrange alternative access.

Applications must be submitted using the Entitlement and Acceptance Form attached to or accompanying the prospectus or downloaded from the Automic investor portal. The Corporations Act prohibits distribution of the form without the full prospectus. Shareholders must provide complete information on the form; incomplete submissions may not be processed. Payment via BPAY or EFT requires no form submission. The prospectus cautions that "investment in the New Shares and New Options offered pursuant to this Prospectus should be regarded as highly speculative in nature, and investors should be aware that they may lose some or all of their investment."

ASX Quotation and Listing of New Shares and Options

Applications for official quotation of the new shares and listed options have been lodged with the ASX in line with the timetable published at the start of the prospectus. The company seeks ASX approval to list the new securities alongside existing Unith shares and options. The ASX does not endorse the prospectus contents or investment merits. Once approved, new shares and options will be tradable on the ASX under standard trading rules.

Quotation timing depends on offer completion and ASX approval, typically occurring within a set period post-offer close, subject to compliance with listing rules. The prospectus references a detailed timetable for investors to consult regarding key dates.

Geographic Restrictions and Exclusions for Foreign Shareholders

The entitlement offer is limited to shareholders with registered addresses in Australia, New Zealand, Spain, and the Netherlands. Shareholders outside these jurisdictions are excluded due to impracticality and regulatory compliance costs associated with other overseas securities laws. This geographic limitation is a common compliance measure for Australian listed companies conducting capital raises.

The prospectus distribution outside Australia may be legally restricted. Persons outside Australia who receive the prospectus should seek legal advice and comply with applicable restrictions. The prospectus does not constitute an offer in jurisdictions where it would be unlawful. Shareholders in excluded regions should contact Unith Ltd directly for alternative arrangements or further information.

Investment Risks and Speculative Nature of the Offer

The prospectus explicitly warns that the new shares and options are highly speculative investments. There is no guarantee of returns, dividend payments, or appreciation in value. Section 4 of the prospectus outlines key risks associated with investing in Unith Ltd shares. Prospective investors should carefully assess suitability based on their financial situation, objectives, and risk tolerance before investing.

Unith Ltd emphasizes the speculative risk, noting investors may lose some or all of their investment. This reflects the volatility and uncertainty common among growth-stage or smaller-cap companies. Investors are urged to thoroughly read the prospectus, consider the risks in Section 4, and seek professional financial and legal advice before participating.

Continuously Quoted Security Status and Prospectus Framework

As a disclosing entity under the Corporations Act, Unith Ltd is subject to continuous disclosure obligations and regularly notifies the ASX of material information. The prospectus is issued under section 713 of the Corporations Act applicable to continuously quoted securities, rather than the full IPO prospectus regime. This streamlined approach assumes investors and advisers have access to ASX disclosures, and the prospectus should be read alongside publicly available company announcements.

Investors should review Unith Ltd’s full ASX disclosure history to gain comprehensive insight into the company’s operations, financials, and strategy. Neither ASIC nor the ASX endorses the prospectus contents or investment merits. The prospectus incorporates by reference the company’s continuous disclosure record, which forms part of the overall information relevant to the offer.