ENTROPY NEURODYNAMICS LIMITED — Capital/Financing Update 2023

Mar 8, 2023

==> picture [595 x 72] intentionally omitted <==

ASX Announcement

Melbourne, Australia, 8 March 2023

Exopharm to Receive $0.431 million in Prepayment of R&D Tax Incentive Claim

Highlights:

• Prepayment of $430,746 for the Research and Development (R&D) tax incentive for FY 2022-2023

• equivalent to 80% of its accrued R&D tax incentive for the period 1 November 2022 – 31 December 2022

• repayment timed to coincide with the receipt of the Company’s FY 2023 R&D tax incentive refund, expected by 30 November 2023

Genetic medicine and exosome-based drug-delivery company Exopharm Limited (ASX:EX1) is pleased to advise that it has entered into a non-dilutive cash loan agreement with Radium Capital (Radium), providing early access to a significant part of the Research and Development (R&D) tax incentive for FY 2022-2023.

The previous loan agreement relating to the announcement on 25 November 2022 for FY 2022-2023 related to funds equivalent to 80% of its accrued R&D tax incentive for the period 1 July 2022 – 30 October 2022. This follows similar loan agreements for FY 2021-2022 which were drawn and fully repaid.

This Radium cash facility provides Exopharm with immediate funds equivalent to 80% of its accrued R&D tax incentive for the period 1 November 2022 – 31 December 2022. The cash advance of $430,746 was based on eligible R&D tax incentive expenditure that has been verified by an independent accounting firm.

Dr Ian Dixon, CEO & Managing Director of Exopharm said “The ongoing use of these facilities, first utilised for FY 2021-2022, provides the Company with additional runway. This standard loan facility provides us a significant non-dilutive cash injection. These types of facilities are a common feature of the biotechnology scene in Australia.”

The advance from the Radium facility is expected in the next week, with the facility accruing interest at the compounded rate of 1.25% per month, and repayment timed to coincide with the receipt of the Company’s FY 2023 R&D tax incentive refund, expected by 30 November 2023.

By the Managing Director - this announcement has been authorised for release by the Managing Director.

EXOPHARM LIMITED ACN: 163 765 991 ASX:EX1 Address: Level 17, 31 Queen Street Melbourne 3000 Telephone: 03 9111 0026 Email: info@exopharm.com Web: www.exopharm.com

COMPANY AND MEDIA ENQUIRIES:

Join our mailing list to receive updates: http://exo.ph/ExoMails www.exopharm.com P: +61 (0)3 9111 0026

Ian Dixon Managing Director Tel: +61 418 561 907 ian.dixon@exopharm.com

ABOUT EXOPHARM

Exopharm (ASX:EX1) is a leader in exosome technology and holds a portfolio of intellectual property and know-how related to exosomes and the manufacture of exosomes.

Exosomes could be an alternative means of drug-delivery inside the body, alongside technologies such as lipid nanoparticles (LNP), cell-penetrating peptides, viral vectors and liposomes.

Exopharm’s exosome technologies solve important needs for the success of exosome medicines – LEAP manufacturing technology, LOAD API loading technologies and EVPS tropism technologies.

Exosome-based medicines could improve the treatment of many chronic or inherited medical conditions.

Exopharm is making its proprietary technologies available to pharmaceutical and biotechnology companies that want to harness exosome-delivery for their own products.

FORWARD LOOKING STATEMENTS

This announcement contains forward-looking statements which incorporate an element of uncertainty or risk, such as ‘intends’, ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘aims’, ‘plans’ or ‘expects’. These statements are based on an evaluation of current corporate estimates, economic and operating conditions, as well as assumptions regarding future events. These events are, as at the date of this announcement, expected to take place, but there cannot be any guarantee that such events will occur as anticipated or at all given that many of the events are outside of Exopharm’s control or subject to the success of the Development Program. Furthermore, the Company is subject to several risks as disclosed in the Prospectus dated 6 November 2018.

2