Hygrovest : HGV Investment Portfolio Report March 2022

Hygrovest Limited

Suite 5706, Level 57, MLC Centre

19-29 Martin Place Sydney NSW Australia 2000

www.hygrovest.com.auinfo@hygrovest.com.au

12 April 2022

HGV Investment Portfolio Report March 2022

HGV Limited (ASX: HGV) ("HGV") is an Australian-listed specialist investment company which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and other financial assets.

HGV Investment Portfolio Report - March 2022

HGV is pleased to provide the HGV Investment Portfolio Report for March 2022 which includes the disclosure pursuant to Listing Rule 4.12.

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Investor and Media Enquiries

Announcement authorised for release to ASX by: Jim Hallam

Chief Financial Officer and Company Secretary E:Compsec@hygrovest.com.au

About HGV

HGV Limited (ASX:HGV) ("HGV") (ABN 91 601 236 417 is an Australian-listed specialist investment company which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and other financial assets.

Important Notice

This announcement contains reference to certain intentions, expectations, future plans, strategy and prospects of HGV. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of HGV may be influenced by a number of factors, many of which are outside the control of HGV. No representation or warranty, express or implied, is made by HGV, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause HGV's actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. HGV does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in HGV. This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any "US person" as defined in Regulation S under the US Securities Act of 1993 ("Securities Act"). HGV's shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers.

HGV Limited

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Investment Portfolio Report March 2022

Important Notice

This announcement contains reference to certain intentions, expectations, future plans, strategy and prospects of HGV. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of HGV may be influenced by a number of factors, many of which are outside the control of HGV. All information is unaudited unless stated otherwise. No representation or warranty, express or implied, is made by HGV, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause HGV's actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. HGV does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in HGV. This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any "US person" as defined in Regulation S under the US Securities Act of 1993 ("Securities Act"). HGV's shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers. The investment returns

shown are historical and no warranty can be given for future performance. Historical performance is not a reliable indicator of future performance. Due to the volatility in a Company's underlying assets and other risk factors associated with investing, investment returns can be negative, particularly in the short-term.

About Hygrovest

Hygrovest Limited ("Hygrovest") (ASX: HGV) is an Australian-listed, specialist investment company that has traded on the ASX since 2015. Investors in Hygrovest gain exposure to a portfolio which concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and other financial assets.

Investments are managed by Parallax Ventures Inc., a specialist management company in Canada.

Since 2015, Hygrovest has created a significant number of investment opportunities from its connections in Canada and Australia in the private investment sector and realised exits to the benefit of Hygrovest and its shareholders:

23

Primary Acquisitions

12

Follow on investments1

4

Private to public

Hygrovest Investment Performance2

10

Sale of investments

1 month

3 monthsFinancial year to date

Since 12 months inception

Pre tax return

7%

(0)%

(14)%

(3)%

(14)%

For Hygrovest's latest investor presentations and news, please visitwww.hygrovest.com.au

AUDKey Metrics as at Net Asset Value

m 34

Investee Porfolio (ex cash) Cash

m 32

m 3

Net Tangible Asset per share - pre-tax (issued pursuant to LR 4.12) Net Tangible Asset per share - post tax (issued pursuant to LR 4.12) Net Asset Value per share

0.1627

HGV share price (ASX) Market capitalisation

0.1487 0.1491 0.060

Number of investments (ex cash)

ASX Investment Type

Initial Public Offering Date (inception date) No. of ordinary shares on issue

mm

14 10 Listed Investment Company 22-Jan-15 230

Hygrovest shareholder communications

Webinars and copies of announcements related to Hygrovest's operations may be found on the Hygrovest website:www.hygrovest.com.au. Hygrovest held a live audio webinar of the Investor Conference Call on 16 March 2022. In the webinar, Michael Curtis, HGV Non-Executive Director and Managing Partner of Parallax Ventures Inc, the asset manager of Hygrovest's investments, gave an update on Hygrovest's major investments.

• 1 Includes investments in existing investees.

• 2 Inception is 30 June 2018 being the date when Hygrovest commenced accounting for investments as an investment entity.

3.Net Tangible Asset Value per share - unaudited, before tax on unrealised gains on investment portfolio. The financial information within this report is unaudited.

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Performance of Hygrovest Portfolio March 2022

During March 2022, HGV's Net Asset Value (before provision for deferred tax) increased by 7%. HGV has produced a loss of 14% for the financial year to 31 March 2022 compared to the 60% loss in the listed Canadian cannabis index as 87% of HGV's investment portfolio remains held in cannabis companies. The positive improvement in HGV's NAV in March 2022 was primarily due to revaluation of HGV's investment in Weed Me - $15m to $18m arising from the combined impact of:

a) the 8% gain during March in the listed Canadian cannabis index and its positive impact on the valuation multiple4 applied to value HGV's investment in Weed Me leading to change in valuation from $15m to $18m5.

b) The continued growth in Weed Me rolling twelve months net revenue.

Portfolio Investment Strategy

HGV is seeking to reduce the 60% gap of the share price to NAV (9 cents per HGV share) by:

a) working with HGV's largest investment, Weed Me, to achieve a liquidity event during 2022 (investment value of $18m) to provide HGV with the option of realising a material portion of HGV's investment;

• b) realising underperforming and or illiquid investments - HGV currently intends to hold its Entourage Health Corp (Entourage) convertible debenture and recover full value (current HGV book value is 62% discount to face value) or when escrow arrangements cease (BevCanna and Vintage Wines Estates); and

• c) invest surplus funds in companies which provide our Shareholders with high capital growth potential either derived from sector specific or company specific growth opportunities.

Funds received from divestments would be applied as dividends6 to HGV Shareholders and/or making investments which the Board considers to be the prospect of higher capital growth and allow HGV to diversify away from the underperforming cannabis sector.

HGV has funds available to deploy in new investments and will also seek to realise existing investments to recycle capital into opportunities which HGV considers having greater potential for capital growth. HGV's current strategy in respect of individual investments is detailed in section 7 of Appendix One. HGV's flexibility in exiting some of its investments remains restricted given the escrow arrangements or where HGV is intending to hold the investment to maturity to realise value (e.g. Entourage) which will unwind during 2022.

Funding Position

HGV is well positioned to create value from its existing portfolio with a liquid balance sheet and cashflows from its investments. HGV has total assets of $37m, with immaterial current liabilities, comprising cash of AUD2.5m and a portfolio of listed equities (CAD3m), listed convertible loans (CAD2m) and unlisted loan securities (CAD4.5m), which provide interest income with flexibility to fund flow on investments, effect timing of investment exits and HGV's operating requirements.

• 4 The EV/NR multiple increased from 4 to 4.6 during the month of review based on the sample of listed companies used by HGV

• 5 The valuation is periodically reviewed with reference to material changes in net revenue and market valuation multiples

• 6 Refer HGV's dividend policy in Appendix One of this publication

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