Mobilicom progresses NASDAQ dual listing to further expand its penetration in the USA market

• NASDAQ dual listing anticipated during Q3 FY22
• Expansion of US presence to accelerate penetration of US drone and robotics market
• Under the NASDAQ IPO, proposed issue of up to 665,000,000 new fully paid ordinary shares at an issue price of not less than 4 cents per share
22 April 2022 – Mobilicom Limited (Mobilicom or the Company, ASX: MOB) is pleased to announce an expansion of its US presence and progress to a NASDAQ dual listing to facilitate this expansion.
Expanding US presence
Mobilicom’s technology has been proved with sales to the Israeli drone manufacturers market and ecosystem including some large users of this technology such as the Israel Ministry of Defense, Elbit, Israel Aerospace Industries, and Rafael.
Mobilicom is experiencing increased interest from the US drone market, the largest market globally for both the commercial and drone segments. Mobilicom has a strong base of existing US customers, including Teledyne-Flir, Sarcos and Censys Technologies, and a strong pipeline in the US, comprising
both existing and prospective customers.
A direct presence in the US will enable Mobilicom to accelerate customer acquisition and repeat orders in the commercial market, and advance product qualification and procurement processes with the US Department of Defense (DoD) and other US Government programs.
Commenting on the Company’s strategic positioning in the US, Mobilicom CEO Oren Elkayam said:
“Mobilicom has a proven track record of design wins and repeat orders in the US, seen most recently with a $560,000 order from a leading US commercial drone manufacturer. This is the largest single US order Mobilicom has received to date and reflects the Company’s unique drone technologies and
market position.
“Mobilicom is leveraging its success in the Israeli drones and robotics market to target tier-1 US customers. With accelerating demand in the US, the world’s largest drone market for both commercial and defense applications, Mobilicom is increasing its strategic focus on this market.”
Progressing NASDAQ dual listing
In conjunction with the Company’s growing US presence, Mobilicom is progressing a NASDAQ dual listing. The process is well advanced with a lead underwriter appointed, Registration Statement on Form F-1 prepared and initial confidential filings made with the U.S. regulatory authorities.
Under the NASDAQ IPO, Mobilicom proposes to issue up to 665,000,000 new fully paid ordinary shares at an issue price of not less than A$0.04 (4 cents) per share. The New Shares will be held by a depository and be represented by ADSs that will trade on NASDAQ. At the Company’s upcoming AGM in May 2022,
Mobilicom will seek approval for the issue of these shares under ASX listing rule 7.1.
Mobilicom sees multiple advantages from a NASDAQ dual listing including:
• Increased US market credibility – with a ramp up in defense spending around the world due to the recent Russia / Ukraine conflict, large budgets are being invested in defense, specifically in drones and cybersecurity. Mobilicom is well placed to address the growing demand for key drone technology components and cybersecurity, and a listing on NASDAQ will enable Mobilicom to increase its market credibility and be strongly positioned to deliver on the defense opportunities.
• Increased liquidity and enhanced valuation of technology companies – the US capital market is more experienced and has greater industry specific knowledge of technology companies, specifically small cap drones and robotics companies, as reflected in their higher comparable valuations. In addition, several of Mobilicom’s US customers have expressed an interest in taking a stake in Mobilicom and being listed on the NASDAQ will facilitate this.
• Accelerated Cybersecurity offering – additional funding would support the promotion of Mobilicom’s first generation embedded (on board the drone) cybersecurity solution to Government and commercial drone customers.
• Enhanced M&A opportunities – several opportunities have been identified and a listing on NASDAQ would provide currency to pursue these opportunities.
Use of NASDAQ IPO proceeds include:
• Expansion of footprint, including direct presence in the US
• Investment in sales and marketing in US and EMEA
• Accelerated rollout and development of Cybersecurity and SaaS offering
• Working capital.
Following F1 submission and SEC review period, Mobilicom’s NASDAQ listing is anticipated during Q3 FY22.
Commenting on the Company’s strategic positioning in the US and progress to a NASDAQ dual listing,
Mr Elkayam said:
“An expanded US presence will be supported with a NASDAQ listing, which is expected to enhance
Mobilicom’s reputation and credibility in the US drone and robotics industry, facilitating accelerated market share gains in the region. We expect strong growth in the US across our end-to-end hardware, software and cybersecurity solutions. Our ICE Cybersecurity offering stands to benefit the most from a strategic US focus as we build the adoption of cyber as a trusted source from within.
“The current conflict in Ukraine involves heavy reliance on cybersecurity and drone warfare, driving higher defense budgets for drones and robotics, including in the US. A NASDAQ listing and direct US presence will support Mobilicom’s growing engagement with the US DoD and NATO countries as we look to secure additional design wins and repeat orders in the Government market, building on our successful commercial relationship with Israel’s Ministry of Defense.”