Equitise is facilitating a portion of this transaction with Canaccord Genuity Australia (the Lead Manager) to raise up to $6 million. A prospectus for the offer is now available on Equitise.

Summary:

• Douugh is listing on the ASX via a reverse takeover (RTO) of Ziptel Ltd (ASX:ZIP). An RTO is often considered as an alternative to an initial public offering (IPO), and where the target public company is listed, an RTO can also be known as a 'backdoor listing'. In this case, ZipTel will acquire all of the legal and beneficial interest in the entire issued share capital of Douugh. To find out more read the press release released by the ASX.
• Douugh is being acquired for $8.25m (275m shares at a deemed price of 3.0c) along with 75m performance shares and 75m options (exercise price 4.0c).
• As part of the RTO, Douugh is seeking to raise a minimum of $4m and up to a maximum of $6m at 3.0c.
• Douugh’s undiluted market capitalisation on Listing is expected to be approximately $16,033,209 at minimum subscription, or $18,033,209 at maximum subscription.
• Company to relist as Douugh Ltd (ASX:DOU) in early September 2020.

Important: Investors should consider the prospectus in deciding whether to invest. Information around the Key Offer Dates are also in the prospectus. Investors will need to complete the application form through the Equitise Platform.

For more information about the Offer, please see Key Offer Information on Pages 9-12 of the Prospectus.

Douugh is not a licenced bank, therefore it is not forced into operating a traditional balance sheet model which is typically reliant on competing on price through the offering of traditional deposit and lending products such as credit cards, personal loans and mortgages. Instead, Douugh operates as a software and services business, charging end consumers fixed and variable fees.

Short-term

Douugh has earned revenue from the government R&D rebate, Mastercard incentives, debit card interchange and the acquisition of brokered deposits paid to Douugh by its banking partner, Choice Bank.

Medium-term

Within the next 12 months, Douugh will look to introduce a monthly subscription fee for the Douugh App consistent with the launch of its robo-advisory (Wealth Management) offering under the Douugh Wealth LLC subsidiary, and enhanced AI automation features to do with everyday budgeting and saving/investing.

Long-term

Douugh’s long-term goal is to adopt a platform business model by becoming a financial control centre for customers, fostering an ecosystem of partners within its own marketplace, from which Douugh will earn income from marketing fees, API fees and revenue share arrangements.

SME banking

Over time it is expected that Douugh will also transition into SME banking. This will see Douugh transfer across all of the key features outlined above, develop a web app and build integrations into key accounting platforms like Xero, Quickbooks and MYOB.

Douugh has forged a long-term strategic partnership with Mastercard in both the US and Australia. Providing this business with;

• Marketing support
• Co-creation on product development
• Access to new digital payment technology
• Introductions to potential banking and advertising partners around the world

Douugh is now live with full open banking, checking account, budgeting, bill & savings jars in the United States.

The issuer making this Offer is Ziptel Ltd. A replacement prospectus dated 12 August 2020 is accessible on this page above. It replaces the prospectus dated 11 August 2020 relating to the Shares of Ziptel Limited (to be renamed Douugh Limited) is accessed from this page and we are currently taking bids within the exposure period. A person should consider the prospectus in deciding whether to acquire securities. Anyone who wants to acquire securities will need to complete the application form that will be in or accompany the prospectus on the Equitise platform.

This offer is being made by Equitise (CAR) Pty Ltd as Corporate Authorised Representative of Lodge Partners AFSL: 246271