Pioneer Credit : $11.35m equity issue and $38.5m PDP investment

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Pioneer raises A$11.35m via share placement and acquires major portfolio, upgrades FY22 guidance

• A$11.35m raised through Institutional and Sophisticated Investor Placement at premium to share price
• $5m cornerstone investment from existing substantial investor James Simpson, co-founder Platinum Asset Management
• Priority Shareholder Offer to follow

Pioneer Credit Limited ('Pioneer' or 'the Company') is pleased to announce the completion of an A$11.35 million placement ('Placement').

The capital raise coincided with Pioneer's appointment as the preferred buyer of a significant portfolio, comprised largely of performing assets. The portfolio will be acquired for ~$38.5m, growing Pioneer's Performing Arrangements (PA) portfolio by 15% to $458m, including $30m (face value) of other accounts.

All accounts within the portfolio, consisting of ~9,550 customers with a face value of ~$85m, have originated from a Big 4 bank or financial services group ensuring high quality customers.

The equity raise will fund part of the purchase price of the portfolio, with an additional ~$28.5m to be provided under an increased senior debt facility with the Company's funders.

Pioneer Managing Director, Keith John said: "At the half year we titled our presentation 'Primed for Growth'. Our team has worked incredibly hard for a long time to position Pioneer to take advantage of some unique opportunities that will arise in the market from here. This portfolio acquisition is the first of those, and one which we expect to immediately improve the economics of the business."

In addition to the above, the Company will use every dollar of liquidations received from this portfolio to pay down its debt facilities, a move that will quickly deleverage Pioneer, improve its balance sheet and better position it for future transactions and other opportunities.

The Placement received strong support from existing investors including substantial shareholder, Mr James Simpson, co-founder of Platinum Asset Management, who was the cornerstone investor of the raise with $5m. This follows Mr Simpson's earlier investment of

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$2m in November last year. Pioneer also welcomes numerous new investors to its register, and the return of several institutional investors.

The issue price for the Placement Shares was $0.55 per share, representing a premium of 6.8% to the last traded share price of $0.515 on Friday 4 March 2022. With 20,636,363 fully paid ordinary shares ('Placement Shares') to be issued and, subject to receipt of shareholder approval, Placement participants will receive an attaching 1-for-1 option at an $0.80 exercise price, expiring on 31 March 2025 ('Option'). Placement Shares will rank equally with existing Pioneer fully paid ordinary shares.

The issue of the Placement Shares utilises the Company's full capacity under ASX Listing Rules 7.1 and 7.1A.

Mr John said he was pleased with the result which occurred in a challenging market.

"Given the uncertainty in the world markets, today's result is exceptional and reflects the reputation of, and belief in, Pioneer's leadership and the strength of Pioneer's underlying business," Mr John said.

"The acquisition of this portfolio is a substantial growth driver for Pioneer and will add a significant value uplift to the Company's financial position with liquidations expected to increase immediately and the Company's PA portfolio to be uplifted by approximately 15% and, off the back of this acquisition, Pioneer has now upgraded its guidance for FY22."

The Company is now pleased to provide its updated guidance to the market:

1 Eligible Shareholders are those registered in Australia, New Zealand, Hong Kong and Singapore on the Company's share registry on the record date of 15 March 2022.

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All dates & times are indicative only and in AEDT. The Company reserves the right to vary these times and dates without notice, subject to the ASX Listing Rules..

A copy of the investment overview 'Payment Arrangement Portfolio Transaction' made to

investors follows.

Authorised by:

The Board of Directors

About Pioneer

Pioneer Credit is an ASX-listed company (ASX: PNC) providing high quality, flexible, financial services support to help everyday Australians out of financial difficulty. Pioneer Credit has the trust of long-term vendor partners to do the right thing and respectfully support customers to achieve their financial independence.

Pioneer Credit has established a solid foundation to pursue further growth by leveraging its outstanding industry relationships, compliance record and customer-focused culture.

www.pioneercredit.com.au