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ASX Release 27 October 2021 dug Q1 FY22 QUARTERLY ACTIVITIES REPORT & APPENDIX 4C DUG Technology Ltd ( ASX : DUG ) ( “ DUG ” or the “ Company ” ) is pleased to provide this update on activities and the Appendix 4C for the quarter ended 30 September 2021 . Highlights • • Total cash held increased during Q1 FY22 to US $ 10.54 million at 30 September 2021 ( 30 June 2021 : US $ 10.02 million ) . The Company has completed a A $ 15 million share placement resulting in A $ 13.41 million being received in Q1 FY22 with the balance of placement proceeds received after the quarter end . Loan repayments of US $ 5.25 million were made to reduce the balance of CBA term debt to US $ 12.45 million - the maturity date of this loan was extended to 1 July 2022 . • Total revenue earned from external customers for Q1 FY22 was US $ 8.69 million . • An agreement was entered into with Austal Ltd for the provision of high - performance computing as a service ( HPCaaS ) using DUG McCloud over a term of 12 months . • The Company signed an option to lease 44.5 hectares of land in Geraldton , Western Australia where it plans to build the world's first climate - positive HPC campus , powered by renewables . • The Company commenced a significant restructure of its Services business - line during Q1 FY22 . Capital raising and debt During Q1 , DUG undertook a successful placement of shares to new and existing sophisticated and institutional investors to raise an additional A $ 15 million . Tranche 1 proceeds of A $ 13.41 million were received during the quarter under review with Tranche 2 proceeds of A $ 1.59 million received in October 2021. The Company's Managing Director and other members of the Board have subscribed for A $ 0.40 million of shares as part of the share placement , with shareholder approval granted at the Company's 2021 Annual General Meeting which was held on 14 October 2021 . In addition , the Company invited all shareholders to participate in a share purchase plan on the same terms as the share placement . The SPP subsequently closed on 13 October 2021 with applications for A $ 1.78 million of shares being received . The capital raise was undertaken to provide funding for the Company's key expansionary activities including Military and Space business development , renewable initiatives , expanding sales teams and purchasing computer equipment . In the short term it will also improve working capital and the ability to repay debt . The repayment date of the Company's term debt facility with CBA has been extended to 1 July 2022. During the quarter US $ 5.25 million of debt was repaid with additional repayments of US $ 1 million to be made before the debt maturity date . DUG TECHNOLOGY LTD | 76 Kings Park Road , West Perth WA 6005 , Australia T +61 8 9287 4100 | E sales@dug.com | www.dug.com | ACN 169 944 334