HHY Fund (HHY)

• Dated  23/08/23 – Fund Update

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity for the Aurora Absolute Return Fund (ABW), Aurora Dividend Income Trust (ADIT), Aurora Fortitude Absolute Return Fund (AFARF), Aurora Global Income Trust (AIB), Aurora Property Buy-Write Income Trust (AUP) and HHY Fund (HHY) (collectively the Funds) provides the following market update, where applicable, in relation to the Funds’ investments in RNY Property Trust (RNY) and Molopo Energy Limited (Molopo).

This Fund Update is supplementary to, and should be read in conjunction with, the earlier Fund update provided on 23 February 2023.

RNY Property Trust update
RNY Property Trust (RNY) is an Australian unlisted property trust with five (5) commercial property assets located in the tri-state area of New York, USA, with 3 properties located in Long Island and 2 properties located in Westchester County, collectively having 830,000 sq feet of lettable office space. Huntley Management Limited is the responsible entity for RNY and Aurora Funds Management Limited is the investment manager.

In August 2021, RNY’s US lender to RNY Australia Operating Company (US LLC), ACORE Capital (‘the Lender’), advised that it would not extend the Loan facility through to October 2022, as contracted, as the Lender considered that documents relating to the net worth test were not administratively executed to its satisfaction and constituted an event of default. Aurora refutes the position adopted by the Lender and notes that the Lender nonetheless continues to rely upon the documents.

In late 2022, the Lender took steps to enforce its security by seeking to commence foreclosure action, seeking to appoint a receiver, and selling the mezzanine debt in the US properties through a Uniform Commercial Code (UCC) auction process. ACORE also advised that default interest of circa US$11 million was due under the loan, however provided no formal paperwork to support this was claim. The UCC auction process was ultimately cancelled after RNY’s related entity, RAOC, acquired the mezzanine debt and paid the associated fees (circa US$1 million).

In March 2023, the Supreme Court of the State of New York County of Nassau (in Long Island) appointed a Rent Receiver over the five RNY properties, being a party independent of the party nominated by the Lender. The Rent Receiver posted a bond and filed an Oath with the Court around 11 April 2023, thereby formalising his appointment. Notwithstanding this appointment, CBRE continues to manage the RNY properties.

Based on recent discussions with the Rent Receiver:
 The strong leasing activity and Letters of Leasing Intent at Tarrytown prior to the Rent Receivers appointment, as mentioned in the last Fund Update of 23 February 2023, have not materialised and no new leases have been executed since March 2023; and
 The Rent Receiver’s remuneration is based on a % of cash receipts and expenditures (including operating costs and capital expenditure) rather than a time-based arrangement.

Aurora denies that the Group was in breach of the loan obligations and continues to defend the enforcement actions taken by the Lender. In the meantime, the additional expenses associated with the Rent Receiver represent a permanent diminution in value for RNY unitholders.

RNY owns 100% of RNY Australia LPT Corp (Maryland REIT) which in turn owns 75% of RNY Australia Operating Company LC (US LLC), which in turn owns the five RNY properties in separately held subsidiaries. Aurora and parties associated with it, including its Funds, own 79.9% of the units in RNY, with Keybridge Capital Limited (ASX: KBC) holding 17.3% and the remaining unitholders holding 2.8%.

Since the last Fund Update, attempts have been made to resolve the deadlock situation with the Lender. Until this matter is satisfactorily resolved, and a new debt facility can be agreed, there is significant uncertainty regarding the valuation of the subordinated loans and equity interests in RNY.

The Lender has, on several occasions, expressed interest in taking over ownership of the RNY properties, however, has stated that it would only be prepared to offer token consideration.

Based on the uncertainty created by the Lenders actions as outlined above, including unsupported claims for default interest, the Aurora Board considers it appropriate to fully impair to nil the carrying value of its equity investments in RNY and the subordinated loans it has advanced to RAOC, until such time as the impasse with the Lender can be resolved.

The fair value of the RNY equity investments and subordinated loans is based on significant estimates and judgements adopted by the Board of Aurora based on all available information about RNY as at the current date. The Aurora Board is aware of the material impact this decision will have on Aurora and its Funds.

Further, Aurora notes that RNY’s second largest unitholder, Keybridge, has fully impaired the carrying values of its 17.3% equity investment in RNY as well as the subordinated loan it advanced to RAOC (which was used to acquire the mezzanine debt in the US properties). Keybridge has stated that the recoverability of its interests in RNY is dependent upon the prevailing market value of the underlying US properties less the senior debt. Further, given the state of the broader market, expectations on property values and the status of the dispute with RNY’s Lender, Keybridge considers its subjective valuation to be appropriate.

The Aurora Board considered the range of possible values and determined that the fair value of the RNY equity investments and subordinated loans held by Aurora and its Funds should now be valued at nil.

Aurora will continue to pursue its options to resolve the deadlock with the Lender.

Molopo Energy update
In a letter to shareholders, dated 2 May 2023, Molopo Energy Limited (Molopo) advised “the Company has approximately AUD$16.9 million in cash and a debt owing to Molopo from a subsidiary of Renergen Limited of approximately AUD4.2 million which has preconditions to its payment and, from 1 January 2023, now accrues interest.”

Further, it added that “as foreshadowed at last year’s Annual General Meeting the Board’s focus has been concentrated on defending the long running Canadian proceedings against the Company’s subsidiary Molopo Energy Canada Limited (MECL) which were commenced in 2011. Since our meeting last year those proceedings are continuing and have now progressed through the discovery process and interrogation of witnesses which has been both detailed and time consuming.

The proceedings involve the claim for damages by 3105682 Nova Scotia ULC (310) against MECL and Crescent Point Holdings Inc and Crescent Point Energy Corp (Crescent Point) arising from the sale of the Company’s subsidiary’s oil and gas assets in 2011. Crescent Point has cross claimed against MECL in relation to potential losses it may incur. The claims for damages by 310 are significant and complex and are being strongly defended by both MECL and Crescent Point but again at significant expense to shareholders. It was anticipated that a court directed mediation would take place in April this year, however, the mediation has now been scheduled for the 5th and 6th December 2023 in Calgary.

The Board will continue to vigorously defend the proceedings.”

Aurora notes that the value of the Funds (AFARF/ABW and AIB) investment in Molopo was written down to nil during the year ended 30 June 2021. The Funds have not adjusted the carrying value of its investment as it is waiting on the outcome of other litigation matters that Molopo is involved in.

The Funds continue to adopt a carrying value of $nil per Molopo share. Aurora will re-assess the carrying value of its investment in Molopo based on further information being released by Molopo regarding its financial position.

Redemptions

Given the uncertainty created by the abovementioned matters, where applicable, Aurora considerers it prudent to maintain a temporary hold on Redemptions until the outcome of the above two (2) matters is known.

• Dated  07/08/23 – Board Changes

Aurora Funds Management Limited (Aurora) is pleased to announce that Mr Jeremy Kriewaldt has been appointed as a Non Executive Director of the Company.

Mr Kriewaldt is a lawyer in private practice, specialising in corporate and commercial law, including mergers and acquisitions, capital raisings and foreign investment, financial product development and securities markets. He started his own practice in 2018 and was previously a partner of Atanaskovic Hartnell (2004 – 2018), Blake Dawson Waldron (now Ashurst) (1990-2003) and served as Counsel to the Takeovers Panel in 2003-2004.

Mr Victor Siciliano who joined the Aurora Board in January 2018 has resigned as a Director of the Company. The Board would like to thank Mr Siciliano for his contribution to the Board during his tenure and wish him all the very best in his future endeavours.

• Dated 23/02/23 – Fund Update 

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity for the Aurora Absolute Return Fund (ABW), Aurora Dividend Income Trust (ADIT), Aurora Fortitude Absolute Return Fund (AFARF), Aurora Global Income Trust (AIB), Aurora Property Buy-Write Income Trust (AUP) and HHY Fund (HHY) (collectively the Funds) provides the following market update, where applicable, in relation to the Funds’ investments in RNY Property Trust (RNY) and Molopo Energy Limited (Molopo).

RNY Property Trust update

RNY Property Trust (RNY) is an Australian unlisted property trust with five (5) commercial property assets located in the tri-state area of New York, USA, with 3 properties located in Long Island and 2 properties located in Westchester County, collectively having 830,000 sq feet of lettable office space. Huntley Management Limited is the responsible entity for RNY and Aurora Funds Management Limited is the investment manager.

On 6 October 2020, during COVID-19 (which greatly impacted New York city), Aurora closed a Loan Modification with RNY’s US lender, ACORE Capital (Lender) with a larger facility to fund certain planned capital works (as required by the Lender), with the following key terms:

• • a three-year term – comprising an initial 6-month term, one six-month extension and two 12-month extension terms following the initial term;
  • interest only;
  • an existing loan facility of US$76.2 million, with US$64.6 million having been drawn, leaving US$11.6 million available for approved capital expenditures and leasing costs;
  • a new mezzanine loan facility of US$15.6 million to fund additional approved leasing costs and capital expenditures; and
  • RNY to complete the approved capital expenditure program.

Through the course of 2022, the Lender made various overreaching demands of RNY, including multimillion dollar claims for fees, which Aurora disputes, and demands that all the buildings be sold in an accelerated manner, for total sale consideration that would have amounted to circa US$92 million.

Separately, Aurora worked with an alternate financier (being a Tier 1 financier) to refinance the 3 Long Island properties (representing approximately two thirds of the portfolio’s lettable area), based on a signed Term Sheet for US$60 million of debt finance (before reserves) on those properties at prime lending rates (locked for 10 years in March 2022). The valuations obtained for the three Long Island properties, in an orderly market, to support this alternative financing exceeded US$90 million.

In addition, based on comparable recent sales of properties in the Westchester area, the value of the remaining 2 RNY properties (in Westchester) is in the vicinity of US$30 million, with these buildings having benefited from circa US$7 million of recent capital improvements.

In late 2022, the Lender took steps to enforce its security by seeking to commence foreclosure action, seeking to appoint a receiver, and selling the mezzanine debt in the US properties through a Uniform Commercial Code (UCC) auction process. This UCC process has the result of transferring the equity in the properties to purchaser of the mezzanine finance (which in this case totalled just US$1.7 million). The UCC auction process was ultimately cancelled after RNY’s related entity, RAOC, acquired the mezzanine debt and paid the associated fees (circa US$1 million).

Aurora is actively defending any enforcement actions taken by the Lender, and engaged US Counsel in June 2022 to assist. In addition, Aurora is working to resolve the deadlock situation with the Lender. Until this matter is satisfactorily resolved, and a new debt facility can be agreed, there is significant uncertainty regarding the valuation of the subordinated loans and equity interests in RNY.

RNY Leasing

Following the substantial capital works program, Aurora is encouraged by the current levels of improved leasing velocity. Aurora is however cautious given the current turbulent economic conditions and interest rate environment; and remains optimistic with the short to medium term prospects of the Portfolio. Furthermore, Aurora is pleased with the retention of its current tenants, with minimal reduction in the portfolio occupancy since the on-set of COVID.

Some recent new leasing highlights include:

• • Full floor tenant (22,128 sq ft) signed with high-credit tenant on commercial terms at Westchester County property.
  • Letter of intent with second full floor tenant (circa 22,000 sq ft) at Westchester County property. Similarly high credit tenant on commercial terms. This lease is expected to be finalised in the short-term.
  • Letter of intent with third full floor tenant (circa 23,000 sq ft) at neighbouring Westchester County property. Similarly high credit tenant on commercial terms. This lease is expected to be finalised in the short-term.
  • Letter of intent with tenant (circa 10,000 sq ft) at Westchester Country property. Similarly high credit tenant on commercial terms. This lease is expected to be finalised in the short-term.

Aurora is diligently working to convert the above-mentioned leases into executed deals. If completed, these prospective leases should materially enhance the occupancy and financial characteristics of the Portfolio.

Molopo Energy update

On 17 December 2021, Molopo Energy Limited (Molopo) advised (on its website) that it had settled the legal action against the former Molopo directors for A$12 million. This equates to 4.8 cents per Molopo share (based on 249,040,648 shares on issue).

Aurora notes that the value of the Funds (AFARF/ABW and AIB) investment in Molopo was written down to nil during the year ended 30 June 2021. The Funds have not adjusted the carrying value of its investment as it is waiting on the outcome of other litigation matters that Molopo is involved in.

The Funds continue to adopt a carrying value of $nil per Molopo share. Aurora will re-assess the carrying value of its investment in Molopo based on further information being released by Molopo regarding its financial position.

Redemptions

Given the uncertainty created by the abovementioned matters, where applicable, Aurora considerers it prudent to maintain a temporary hold on Redemptions until the outcome of the above two (2) matters is known.

Yours faithfully
Aurora Funds Management Limited

John Patton

Signed Fund Update

• Dated 29/08/22 – Delisting from the ASX

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity for the HHY Fund (HHY), provides the following update. On 26 August 2022, HHY was delisted from Official Quotation, with the CHESS holdings converted to Issuer Sponsored numbers which can be viewed via the share registry – Boardroom Limited.

End of month prices are shown on the Aurora website: https://www.aurorafunds.com.au/investment-funds/hhy/price-ntas-distributions/

• Dated 18/08/20 – Resignation of Joint Company Secretary and Change in Compliance Committee

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity for the HHY Fund (HHY), the Aurora Property Buy-Write Income Trust (AUP), the Aurora Global Income Trust (AIB) and the Aurora Absolute Return Fund (ABW), provides the following update as a result of ASX enquiries:

Mr Briglia’s role as Chief Financial Officer and Joint Company Secretary ceased on 1 April 2020 which coincided with the COVID-19 national lockdown measures introduced by the Australian Federal Government in March 2020. Mr Briglia’s financial responsibilities have been absorbed by Aurora’s existing finance, compliance and operations team, and Mr Patton has assumed sole responsibility for the Company Secretarial function (having been appointed as a Company Secretary on 29 November 2017).

Mr Patton also replaced Mr Briglia as the internal member of Aurora’s Compliance Committee, with the other two independent members being Mr Anthony Hartnell AM and Mr Patrick
Burroughs.

This announcement was authorised for release by Aurora’s Managing Director.

• Dated 29/06/20 – ADIT Bid Update

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity for the Aurora Dividend Income Trust (ADIT), the HHY Fund (HHY) and the Aurora Fortitude Absolute Return Fund (AFARF), provides the following update in relation to the ADIT takeover bid for the ordinary shares in Keybridge Capital Limited (Keybridge) which closed on Monday, 6 April 2020.

Read more here.

• Dated 07/04/20 – Close of Takeover Offer – Keybridge Capital (KBC)  

Aurora Funds Management Limited (Aurora), in its capacity as responsible entity of the Aurora Dividend Income Trust (ADIT), advises that the offers made by ADIT under its off-market takeover bid for the ordinary shares in Keybridge Capital Limited (Keybridge) closed on Monday, 6 April 2020 pursuant to the terms of those offers.

ADIT received acceptances of 21.20% of the ordinary shares in Keybridge.

Aurora notes that Bentley Capital Limited, who accepted the ADIT offer, has made an application to the Takeovers Panel seeking to have its acceptance reversed.

This notice has been approved by the Board of Aurora.

• Dated 30/03/20 – Second Supplementary Bidder’s Statement

This document is a supplementary bidder’s statement under section 641 of the Corporations Act 2001 (Cth). It is the second supplementary bidder’s statement (Second Supplementary Bidder’s Statement) issued by Aurora Funds Management Limited as responsible entity for the Aurora Dividend Income Trust (ARSN 151 947 732) (ADIT) in relation to its off-market takeover bid for the ordinary shares in Keybridge Capital Limited that ADIT does not already own. This Second Supplementary Bidder’s Statement supplements, and should be read together with, ADIT’s bidder’s statement dated 7 February 2020 (Original Bidder’s Statement) and ADIT’s First Supplementary Bidder’s Statement dated 5 March 2020. This Second Supplementary Bidder’s Statement prevails to the extent of any inconsistency with the Original Bidder’s Statement and First Supplementary Bidder’s Statement. Terms defined in the Original Bidder’s Statement and First Supplementary Bidder’s Statement have the same meaning in this Second Supplementary Bidders Statement. A copy of this Second Supplementary Bidder’s Statement was lodged with ASIC on 30 March 2020. Neither ASIC nor any of its officers takes any responsibility for the content of this Second Supplementary Bidder’s Statement.

Read more here.

• Dated 24/03/20 – ADIT Takeover Bid for the ordinary shares in Keybridge Capital Limited

Aurora Funds Management Limited (ACN 092 626 885), as responsible entity for Aurora Dividend Income Trust (ARSN 151 947 732) (ADIT), refers to the off-market takeover bid for the fully paid ordinary shares in Keybridge Capital Limited (ACN 088 267 190) (KBC).

ADIT’s Supplementary Bidders Statement, dated 5 March 2020, detailed its improved cash consideration of 7.0 cents for each fully paid ordinary share (Improved Bid), which which was subject to Keybridge shareholders being granted the ability to withdraw their acceptances (Withdrawal Condition) from the WAM Active bid.

On 13 March 2020, Aurora announced that ADIT had freed its bid of all defeating conditions which included the Withdrawal Condition. As such, ADIT’s takeover bid for KBC is 7.0 cents per share.

• Dated 14/03/20 – HHY Fund to cancel Entitlement Offer  

Aurora Funds Management Limited (Aurora), in its capacity as Responsible Entity for the HHY Fund (Fund or HHY), provides the following update in relation to its Entitlement Offer originally announced on 25 February 2020.

Cancellation of Entitlement Offer

Considering the recent heightened global market volatility, Aurora has decided that it is in the best interests of unitholders to cancel the Entitlement Offer and refund all amounts to unitholders who participated in the capital raising. All application monies received under the Entitlement Offer will now be refunded in full without interest, pursuant to the terms set out in the Entitlement Offer booklet, with refund transfers commencing from Wednesday, 18 March 2020.

• Dated 13/03/20 – Notice of status of defeating conditions  

Aurora Funds Management Limited (ACN 092 626 885), as responsible entity for Aurora Dividend Income Trust (ARSN 151 947 732), refers to the off-market takeover bid for the fully paid ordinary shares in Keybridge Capital Limited (ACN 088 267 190) (KBC), for the improved cash consideration of 7.0 cents for each fully paid ordinary share (Bid).

In accordance with section 650F(3)(a) of the Corporations Act 2001(Cth) (Act), we enclose a notice under section 650F(1) of the Act in relation to freeing the Bid of defeating conditions.

• Dated 10/03/20 – Off-Market Takeover Bid for Keybridge Capital Limited (ASX: KBC)

Aurora Funds Management Limited (Aurora), as responsible entity for the Aurora Dividend Income Trust (ADIT) in accordance with section 633(1) item 8 of the Corporations Act 2001 (Cth), gives notice that on 6 March 2020, it dispatched its Bidder’s Statement dated 7 February 2020 and Supplementary Bidder’s Statement dated 5 March 2020 in relation to its takeover bid for all of the ordinary shares in Keybridge Capital Limited (ACN 088 267 190) (Keybridge) (Bid).

The Bid is open for acceptance and ADIT encourages Keybridge shareholders to accept the Bid as soon as possible, noting however that the Bid currently remains conditional.

The Bid is currently scheduled to close at 7.00pm (AEST) on 6 April 2020, unless extended or withdrawn.

The release of the Bidder’s Statement and this announcement is authorised by the Board of Aurora.

• Dated 06/03/20 – Aurora Dividend Income Trust – Keybridge Capital Limited (ASX: KBC) Bidders Statement UPDATED

Aurora Funds Management Limited as responsible entity for the Aurora Dividend Income Trust (ADIT) is offering to acquire all of your fully paid ordinary shares in Keybridge Capital Limited (ASX: KBC) issued on or before 10 February 2020, through the Bid contained in this Bidder’s Statement.

Read the Bidders Statement here.

• Dated 05/03/20 – Aurora Dividend Income Trust – Keybridge Capital Limited (ASX: KBC) Supplementary Bidders Statement

Aurora Funds Management Limited as responsible entity for the Aurora Dividend Income Trust (ADIT) is offering to acquire all of your fully paid ordinary shares in Keybridge Capital Limited (ASX: KBC) issued on or before 10 February 2020, through the Bid contained in this Bidder’s Statement.

Read the Bidders Statement here.

• Dated 03/03/20 – Results of Institutional Entitlement Offer

Aurora Funds Management Limited (Aurora), in its capacity as Responsible Entity for the HHY Fund (Fund or ASX: HHY), announces the closure of its Institutional Entitlement Offer to raise up to $3.25 million (‘Entitlement Offer’) originally announced 25 February 2020 and updated announcement dated 28 February 2020. The Entitlement Offer originally comprised of an institutional component (Institutional Entitlement Offer) and a retail component (Retail Entitlement Offer). No funds were raised under the Institutional Entitlement Offer, which is now closed. All HHY unitholders will be able to participate in accordance with the same timetable as the Retail Entitlement Offer.

Read more here.

• Dated 03/03/20 – Aurora Dividend Income Trust – Keybridge Capital Limited (ASX: KBC) Takeover Bid Update

Aurora Funds Management Limited (Aurora), as responsible entity for the Aurora Dividend Income Trust (ARSN 151 947 732) (ADIT or Fund), announces that it proposes, if certain conditions (as set out below) are satisfied, to vary its off-market takeover bid for the fully paid ordinary shares in Keybridge Capital Limited (ACN 088 267 190) (KBC)1 , by increasing the cash consideration offered from 6.6 cents (Initial Bid) to 7.0 cents for each fully paid ordinary share (Improved Bid).

Conditional Increase in ADIT’s Bid consideration

ADIT’s Initial Bid is 6.6 cents cash per KBC share. However, ADIT will increase its bid to 7.0 cents cash per KBC share on the condition that Target shareholders are able to withdraw their acceptances from the WAM Active takeover offer dated 3 January 2020. All other conditions in the Initial Bid, as announced on 8 January 2020, remain the same.

ADIT is planning to release its Bidder’s Statement shortly.

• Dated 28/02/20 – HHY Amendment of Entitlement Offer dated 25 February 2020   

Aurora Funds Management Limited, in its capacity as responsible entity for the HHY Fund (Fund or ASX: HHY), announces the following variations to HHY’s Entitlement Offer announced to the ASX on 25 February 2020.

In order to ensure all institutional holders may participate in the Entitlement Offer in full, HHY has varied the offer terms as follows: • the closing date of the Institutional Entitlement Offer has been extended to 7.00pm AEST on Monday, 2 March 2020; • the Record Date has been extended to 7.00pm AEST on Tuesday, 3 March 2020; and • to require the appointment of a nominee to acquire New Units that Ineligible Unitholders would have been entitled to acquire, had they been eligible to participate in the Entitlement Offer.

As a result of the above changes, the Retail Entitlement Offer will open on 5 March 2020 and close on 16 March 2020.

As at the time of this announcement, no acceptances have been received to the Institutional Offer (as defined in the Entitlement Offer). However HHY has received indications that at least one institutional holder intends to participate in the offer and in the shortfall offer, to the maximum extent permitted by law.

Under the terms of the Entitlement Offer, certain Unitholders in the HHY Fund were ineligible to participate in the Entitlement Offer. So far as HHY is aware, there is only one such unitholder, a retail unitholder (with less than 10,000 units), who is ineligible. As a result, HHY originally concluded that the costs of the nominee arrangement described below was not justified. However, to ensure that unitholders participating in the Entitlement Offer have the benefit of the exemption described at item 10 of the table set out under section 611 of the Corporations Act, HHY will issue units that would otherwise have been issued to Ineligible Unitholder(s) to a nominee, which will exercise its discretion in selling those New Units. The net proceeds of the sale (if any) will, at the conclusion of the sale process, be distributed to the Ineligible Unitholder(s) in proportion to their unitholding at the Record Date.

These variations are made in accordance with section 5.8 of the original Entitlement Offer. The amended terms of the Entitlement Offer are reflected in the amended Entitlement Offer booklet set out in Annexure A, with the updated terms (including some typographical corrections) shown in marked-up form.

• Dated 28/02/20 – Request for Voluntary Suspension   

Pursuant to Listing Rule 17.2, Aurora Funds Management Limited (Aurora) as the responsible entity of HHY Fund (ARSN 112 579 129) (ASX: HHY) (HHY), requests that a voluntary suspension be extended by the Australian Securities Exchange with respect to its securities pending completion of the proposed capital raising referred to in the trading halt lodged on Tuesday 25 February 2020.

The voluntary suspension is requested until the earlier of the provision of an announcement to ASX on completion of the capital raising or prior to the commencement of trading on Tuesday, 3 March 2020.

Aurora is not aware of any reason why the voluntary suspension should not be granted.

• Dated 25/02/20 – Entitlement Offer   

The attached Offer Booklet will be mailed to eligible unitholders in relation to the retail component of HHY’s accelerated non-renounceable pro-rata 1 for 1 entitlement offer announced on 25 February 2020.

Retail Entitlement Offer Booket

• Dated 25/02/20 – HHY Fund – Trading Halt   

In accordance with the requirements of LR17.1, Aurora Funds Management Limited (Aurora) as the responsible entity of HHY Fund (ARSN 112 579 129) (HHY), requests the trading halt
of HHY units for two business days.

The reason that Aurora requests the trading halt is to allow for HHY to conduct an “accelerated non-renounceable entitlement offer”. This offer invites unitholders to participate in a 1-for-1 pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary units in HHY (New Units) at an offer price of $0.04 (Offer Price) per New Unit to raise approximately $3.25 million (Entitlement Offer). The Entitlement Offer comprises an institutional component (Institutional Entitlement Offer) and a retail component (Retail Entitlement Offer), to be announced on 25
February 2020.

The trading halt is requested to commence on 25 February 2020, until the earlier of Aurora making an announcement to ASX concerning the above matters and the commencement of trading on 27 February 2020.

Aurora is not aware of any reason why the trading halt should not be granted.

The Entitlement Offer Booklet will also be made available to ASX as and when required.

• Dated 08/01/20 – Appointment of New Chief Financial Officer and Company Secretary   

Aurora Funds Management Limited, as Responsible Entity the HHY Fund announces that Mr Adrian Tilley has resigned as Chief Financial Officer and Company Secretary to take up a role in his family business in his regional hometown of South Gippsland, Victoria. The Board acknowledges the substantial contribution made by Mr Tilley during his tenure with Aurora and sincerely wishes him all the very best in his future endeavours.

Aurora is pleased to announce that Mr Mark Briglia has been appointed to the role of Chief Financial Officer and Company Secretary. Mr Briglia’s most recent role was as Chief Financial Officer and Group Manager, Australian Energy Market Operator. Mr Briglia has deep industry experience across a number of sectors at the executive level both in Australia and internationally. In addition, he is a Certified Practicing Accountant and holds a Master of Business Administration and a Bachelor of Commerce (University of Melbourne).

Mark will also replace Adrian Tilley as the internal member of Aurora’s Compliance Committee.

• Dated 20/12/2019 – On Market Buy Back

• Dated 19/07/2019 – Termination of Investment Management Agreement with Keybridge Capital Limited

• Dated 11/07/2019 – Termination of Investment Management Agreement with Keybridge Capital Limited

• Dated 21/12/2018 – On Market Buy Back

• Dated 06/12/2018 – Voting Results of the HHY Fund Unitholder Meeting

• Dated 20/10/2017 – Units to be Issued AIB to HHY Fund Unitholders

• Dated 26/04/2017 – Appointment of Chief Operating Officer

• Dated 09/12/2016 – Voting Results of the HHY Fund Unitholder Meeting

Aurora Funds Management Limited (Aurora) is pleased to announce the outcome of the meeting held on 6th December 2016, which was subsequently adjourned to 9 December 2016, whereby investors opposed all of the resolutions proposed by Wilson Asset Management (Wilson). Accordingly, Aurora will continue to act as the Responsible Entity (RE) of the HHY Fund (HHY).

The meeting had been adjourned due to a challenge by Wilson against the legal validity of online voting. After considering the matter, the independent Chairman determined to accept the online votes. Details of the resolutions and the proxies received in respect of each resolution considered at the Meeting are set out in the attached proxy summary.

• Dated 29/09/2016 – Chairman’s Address

In accordance with Listing Rule 3.13.3, attached is the prepared address to be given by the Chairman of the General Meeting of HHY Fund Unitholders to be held at 11am today. Read more here.

• Dated 27/09/2016 – Chairman Notification

John Malon, principal of Hive Legal, has been appointed by Aurora as Chairman of the Meeting for the HHY Fund meeting to be held on Thursday 29 September 2016

• Dated 15/09/2016 – Explanatory Memorandum

This Explanatory Memorandum has been issued by Aurora Funds Management Limited (ACN 092 626 885) (Aurora), as responsible entity of the HHY Fund (ARSN 112 579 129) (HHY), in relation to a meeting called by Wilson Asset Management (International) Pty Limited and its related entities (WAME) pursuant to section 252B of
the Corporations Act to consider resolutions concerning the winding up of HHY and the removal of Aurora as the responsible entity of HHY.

The directors of the Responsible Entity unanimously recommend that
you vote AGAINST all of the resolutions

Read more here.

• Dated 25/08/2016 – Notice of Meeting

Aurora recommends HHY Unit Holders take no action in respect of the Meeting prior to receiving the Explanatory Memorandum, which will be posted to the registered address of each HHY Unit Holder and announced to the ASX.

Read more here.

• Dated 3/3/2016 – Antares Energy Convertible Notes (ASX: AZZG)

Aurora Funds Management Limited (“Aurora”) as Responsible Entity and Investment Manager of the HHY Fund (“the Fund”) announces that as at 31 January 2016, the Fund held (and continues to hold) a position in Antares Energy Convertible Notes (ASX: AZZG). The size of the position at this date was 0.88% of the Net Tangible Assets
of the Fund.

The AZZG are currently suspended from trading and this notice is to advise HHY investors of our exposure to the notes. At less than 1% of NTA we believe this position is not material. We will continue to provide monthly NTA reports for the HHY Fund and additional information on any material investments in due course through ASX announcements.

• Dated 20/7/2015 – Change in investment strategy

From 19 August 2015, the investment strategies will include the ability to invest in listed Australian and international equities, unlisted Australian and international securities, options, convertible securities, and other derivative securities.  Aurora may also reduce part of the equity market exposure by short selling securities, or using appropriate levels of interest rate or currency hedging to limit exposures to fluctuations in these markets without sacrificing long-term investment performance. The Fund may also use borrowings to increase its levels of investment into the enhanced investment strategy.