Delta SBD : 26-08-2016 DSB ASX Announcement - New Share Issue

ASX Announcement 26 August 2016

ASX: DSB

Board of Directors

Chairman - G Dawkins

Chief Executive Officer - N McAlary Managing Director - S Bizzaca

Non-executive Director - G Garside

Company Secretary

M Etcell

Principal Contact

Chief Executive Officer - N McAlary

Registered office

Suite 220, Centric

4 Hyde Parade

Campbelltown NSW 2560

Telephone: +61 2 4629 0300

Facsimile: +61 2 4629 0399 Website: www.deltasbd.com.au

New Share Issue

Delta SBD Limited (ASX: DSB) (Delta or Company) wishes to announce the issue of 6,075,000 fully paid ordinary shares to The Collins Street Value Fund (CSVF) at a share price of

$0.125 cents per share. Gross proceeds from the issue will raise

$759,375 which will increase the Company's cash reserves and assist to fund general working capital.

Mr Glyn Dawkins, Delta's Chairman, stated "We are delighted to welcome CSVF as a key institutional investor of the Company and hope the new issue of shares will increase both liquidity and investor awareness".

The share issue enables the Company to further deleverage and will, subject to Directors' sign-off, allow the Company to re-instate dividends at the upcoming release of the 30 June 2016 annual results.

The issue is within the Company's 15% capacity in accordance with ASX Listing Rule 7.1. New shares issued will rank equally with existing shares on issue and are expected to settle on Monday, 29 August 2016, with trading commencing on Tuesday, 30 August 2016.