Rights Offer Frequently Asked Questions (FAQs)

Rua is releasing to the market further information on the Rights Offer in the form of Frequently Asked Questions (FAQs). These can be found below and on our website. Overview 1. Why is Rua raising money? Rua requires further capital to fund the growth of its business. The funds raised through the Rights Offer will be used to meet its immediate cashflow requirements and support Rua Bioscience’s growth plans, including international market expansion and product development. This will strengthen the company's financial position and provide working capital which is required for growth. 2. How much is Rua looking to raise? Up to $3.1m. 3. If I am a shareholder, how do I participate? If you are a shareholder through the Computershare platform, follow the instructions at www.shareoffer.co.nz/rua. If you are a shareholder through the Sharesies platform, go to the Sharesies app, find RUA, and follow the instructions. Sharesies will have also sent you an email. 4. If I am not currently a shareholder, can I participate? You will need to visit Sharesies. You will be able to purchase shares through their platform if there is a sufficient shortfall in subscriptions under the Rights Offer. 5. Is it a good investment? We cannot advise you. You should seek advice from a qualified financial advisor, read all the documentation thoroughly, and make your own judgment. 6. What is a Renounceable Rights Offer? If you are an existing shareholder in Rua, a Renounceable Rights Offer gives you the right to buy additional new shares in the company (New Shares) at a discounted price. If you do not want to purchase additional New Shares, you can “give up” or “renounce” your right to it, and in fact, sell these rights. These rights can be traded or sold on the NZ stock exchange between 12 November and 20 November under the ticker RUARA. You will need to instruct your broker or an NZX Firm to sell your rights. Or, if you are with Sharesies, instruct them. In summary, if you are already a shareholder, you have a right to buy more New Shares under the Rights Offer or sell the rights to someone else. 7. How does this Capital Raise work? There are different ways to raise capital, but a common way is to issue new shares through a placement or a Rights Offer. A Rights Offer is considered the fairest way as it gives all shareholders the chance to participate on the same terms. Rua Bioscience currently has approximately 164 million shares, and we plan to issue another 122 million shares (approximately) through the Rights Offer and any shortfall placement. For every 4 shares you currently own in Rua, you will be allowed to purchase another 3 New Shares for 2.5c a share. This means you will have a “Right” to 3 New Shares for every 4 you own. For example, if you own 10,000 shares, you will receive 7,500 rights, giving you the ability to subscribe for up to 7,500 New Shares for an aggregate subscription price of $187.50. Under the example above, you can either: a. Take up all or some of your Rights (i.e., buy some or all of the 7,500 New Shares up to $187.50); or b. Take up all of your Rights and apply for Additional New Shares as a part of the Oversubscription Facility (i.e., buy the full 7,500 New Shares for $187.50 and apply for more New Shares at the same price of 2.5 cents per share); or c. Sell all or some of your Rights on the NZX Main Board (i.e., don’t buy any New Shares but sell your Right to someone else); or d. Take up some of your Rights and sell all or some of the remaining balance on the NZX Main Board (i.e., buy some New Shares and sell some of your Rights); or e. Do nothing with all or some of your Rights. 8. What are the benefits of participating in the Rights Offer? By participating, you can: o Buy additional shares in Rua at a lower price than the current market value. o Increase your overall shareholding in the company. o Avoid potential dilution of your existing shareholding (your percentage ownership of Rua won’t decrease if you subscribe in full). Details 9. What are the key dates for the Rights Offer? See the Section called Important Dates in the Offer Document. 10. What happens if I don’t want to buy more shares? If you don’t want to buy more shares, you can sell your rights during the trading period (12–20 November). Alternatively, if you do nothing, your rights will lapse, and you won’t be required to do anything, but your shareholding will likely be diluted. 11. Can I sell my rights to someone else? Yes, since this is a renounceable offer, your rights can be sold on the stock exchange. You can trade these rights like shares, so if you don’t want to participate, you have the option to sell them to others. 12. What happens if I sell my rights? If you sell your rights, the buyer of those rights will have the option to purchase the additional New Shares at the discounted price. You will receive the proceeds from selling your rights. 13. How do I pay for the additional shares if I decide to take up the offer? Instructions on how to purchase additional shares can be found at www.shareoffer.co.nz/rua or through the Sharesies app. 14. What if I hold shares in Rua Bioscience through Sharesies? In the Offer Document, Sharesies are called a “Custodian.” If you hold your shares through Sharesies, they will notify you directly of the rights you are entitled to. You will need to follow their process to either take up the offer or sell your rights. They should have sent you details via email. If you have not received an email from them, contact them through the Sharesies app or help@sharesies.co.nz. 15. What if I don’t participate in the Rights Offer? Participation in the Rights Offer is not compulsory. However, if you do not participate, your shareholding will likely be diluted. This means your percentage ownership in Rua will decrease as more shares are sold to others. 16. Can I apply for more shares than my allocated rights? Yes, you can. You apply on the www.shareoffer.co.nz/rua web page, and if there are shares available, you can buy more. More Help 17. Where can I find more information about the Rights Offer? Computershare web page – www.shareoffer.co.nz/rua Email Rua at info@ruabio.com if you have any questions. 18. What should I do if I need help understanding the Rights Offer? If you have any doubts or need further clarification, it’s a good idea to speak to a financial advisor. ENDS     The person who authorised this announcement: Paul Naske Chief Executive Officer paul.naske@ruabio.com +64 21 445154