Praemium Limited announced that it's wholly owned subsidiary, Powerwrap Limited, has entered into a new strategic partnership with Escala Partners via an updated services agreement with a six year term (New Services Agreement). The New Services Agreement outlines key commercial terms for the provision of platform services, model portfolios, shared services, other accounts, transactions/clearing & execution and other initiatives. As part of
the New Services Agreement, Powerwrap and Escala will work collaboratively to continue improving longer term platform capabilities to ensure it remains a market leading service. Entering into the New Services Agreement and bringing forward the existing services agreement that was due to expire in December 2023 ensures Praemium can allocate required resources and continue to invest in its larger with certainty and benefit from ongoing growth of Escala. The New Services Agreement ensures Escala can service its client base through offering the broadest product range across key markets with seamless execution and reporting. The New Services Agreement contains detailed scope to deliver Escala's key platform requirements and collaboration to further improve Powerwrap's platform for the benefit of both parties. In recognition of Escala entering into the New Services Agreement, Praemium has agreed to issue a related party of Escala 5.5 million options in Praemium with an expiry of 5 years from issue and strike price of $0.70
and 1 million options on the same terms to Henslow Pty Ltd. who acted as corporate advisor for the transaction. The new issue of options will be outlined in an Appendix 3B to be released to the market.