Carly Holdings Limited (ASX: CL8) (Collaborate or the Company) is pleased to confirm the despatch today of letters to Eligible Shareholders providing details of how to access the prospectus as lodged with ASIC and ASX on 15 April 2021, including the entitlement and acceptance form online, for the renounceable rights issue of shares and options to raise approximately $3.39 million before costs (Rights Issue).

The Rights Issue will be offered to shareholders registered at the Record Date of 20 April 2021 with a registered address in Australia and New Zealand (Eligible Shareholders) on the basis of three (3) New Shares for every four (4) Shares held, together with one (1) free attaching option for every three (3) New Shares subscribed for and issued. The free attaching options will be exercisable at $0.16 each and expire on 31 May 2023 (New Options). The Company will apply for the New Options to be quoted on ASX.

As previously announced, major shareholders of the Company have confirmed their intention to take up their rights under the Rights Issue totalling over $1.50 million, namely SG Fleet Management Pty Limited and Willoughby Capital Pty Ltd as trustee for the Willoughby Capital Trust. The minimum subscription under the Rights Issue is $3.15 million.

The funds raised under the Rights Issue will be used to accelerate the growth in the supply of vehicles available for subscription. Carly intends to allocate the capital to enable it to leverage the funds to deliver a significant increase in supply of vehicles, such that Carly will have an increased level of control over the availability and deployment of vehicles, enabling Carly to better address the significant demand for subscription vehicles and deliver stronger growth in revenues. Additionally, the proceeds will be used for customer acquisition, sales and marketing activities, to cover costs of the issue and for general working capital.

Mahe Capital advised on the issue and acts as Lead Manager.

Eligible Shareholders may take up shortfall under the Rights Issue in addition to their entitlements under the offer. Applications for securities under the Rights Issue can be made by electronic funds transfer or BPAY. In light of delays in postage delivery times due to the COVID-19 pandemic, the Company will not be accepting payment by cheque or bank draft. Shareholders can also trade their rights until 30 April 2021.

The Closing Date for the Rights Issue is 5:00 pm (AWST) on Friday, 7 May 2021.

Following this announcement is a copy of the letter sent to Eligible Shareholders today. Eligible Shareholders are encouraged to participate in the Rights Issue. Any questions concerning the Rights Issue should be directed to Karen Logan, Company Secretary by email at shareholder@carly.co.

This announcement was authorised to be given to ASX by the Board of Directors of Carly Holdings Limited.

Contact:

Chris Noone

Email: shareholder@carly.co

About Carly Holdings Limited

Carly Holdings Limited (ASX: CL8) www.carly.co/investors is listed on the Australian Securities Exchange. It is Australia's leading listed company focused on providing innovative mobility solutions for consumers and the automotive industry. Carly Holdings operates www.DriveMyCar.com.au Australia's leading peer-to-peer car rental business, and www.Carly.co, Australia's first flexible car subscription service.

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