INVION LIMITED — Interim / Quarterly Report 2016

Oct 30, 2016

ASX ANNOUNCEMENT: APPENDIX 4C

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31 October 2016

The Manager Company Announcements Office ASX Limited 20 Bridge St SYDNEY NSW 2000

Dear Sir

APPENDIX 4C

Invion Limited (ASX:IVX) is pleased to lodge its Appendix 4C for the quarter ending 30 September 2016.

The Company held cash reserves of $0.664 million at the end of September, with cash outflows during the quarter at $0.232 million.

As reported in previous quarters, operating cash outflows have been reduced reflecting lower capital-intensive activity following the completion of major R&D program milestones.

These milestones include the completion of two phase II clinical trials for the company’s lead drug asset - INV102(nadolol) - being a phase II study of nadolol in patients with chronic bronchitis, and a phase II study of nadolol in patients with mild asthma.

The Company is driven to realise value from its assets via a commercial transaction following the successful completion of its major R&D milestones. The activity of the Company therefore has been directed towards business development, and the partnering (via sale or out-licence) of one or all of its assets.

An Appendix 4C accompanies this announcement.

For and on behalf of the Board of Invion Limited

MELANIE FARRIS

Company Secretary and Head of Operations

Invion Limited ABN 76 094 730 417 GPO Box 1557, Brisbane, QLD 4073 P +61 7 3295 0500 F +61 7 3295 0599 www.inviongroup.com

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/3/00. Amended 30/9/01, 24/10/05, 17/12/10, 1/09/16

Name of entity

Name of entity
INVION LIMITED
ABN 76 094 730 417	Quarter ended(“currentquarter”)
	30-September-2016
Consolidated statement of cash flows 1. 1.2 Payments for (d) leased assets (e) staff costs 1.3 1.4 1.5 1.6 Income taxes paid 1.7 1.8 Cash flows from operating activities Other (provide details if material) Interest and other costs of finance paid 1.1 Receipts from customers Interest received Dividends received (see note 3) 1.9 (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (f) administration and corporate costs Government grants and tax incentives Net cash from/(used in ) operating activities	Current quarter $A’000	Year to date (3 months) $A’000
	(114) - - 1 (20) (247) - - - - 610 - -	(114) - - 1 (20) (247) - - - - 610 - -
	230	230
2. 2.1 Payments to acquire: (c) investments Cash flows from investing activities (a) property, plant and equipment (b) businesses (see item 10)
	- - -	- - -

• See chapter 19 for defined terms 1 September 2016

Appendix 4 C Page 1

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
(d) intellectual property 2.2 (c) investments (d) intellectual property 2.3 2.4 2.5 2.6 Cash flows from loans to other entities Dividends received (see note 3) Other (provide details if material) Net cash from/(used in ) investing activities (e) other non-current assets Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (e) other non-current assets	- - - - - - - - - -	- - - - - - - - - -
	-	-
3. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 4. 4.1 4.2 4.3 4.4 Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Cash flows from financing activities Proceeds from issues of shares Proceeds from issue of convertible notes Cash and cash equivalents at beginning of quarter/year to date Proceeds from exercise of share options Transaction costs related to issues of shares, convertible notes or options Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other (provide details if material) Net cash from/(used in ) financing activities Net increase / (decrease) in cash and cash equivalents for the period
	4 - - - - - - - -	4 - - - - - - - -
	4	4
	437 230 - 4	437 230 - 4

• See chapter 19 for defined terms 1 September 2016

Appendix 4 C Page 2

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.5 4.6 Cash and cash equivalents at end of quarter Effect of movement in exchange rates on cash held	(9)	(9)
	662	662

5. 5.1 Bank Balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Cash and cash equivalents at end of quarter (should equal item 4.6 above)	Current quarter $A'000	Previous quarter $A'000
	662 - - -	437 - - -
	662	437

• Current quarter

• 6. Payments to directors of the entity and their associates $A'000

• 6.1 Aggregate amount of payments to the parties included in item 1.2 (18) 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -

6. Payments to directors of the entity and their associates

• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Payments to directors includes directors fees and executive directors salaries.

• Current quarter

• 7. Payments to related entities of the entity and their associates $A'000

• 7.1 Aggregate amount of payments to the parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 -

7. Payments to related entities of the entity and their associates

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

• See chapter 19 for defined terms 1 September 2016

Appendix 4 C Page 3

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8. 8.1 Loan facilities 8.2 8.3 Other (please specify) Financing facilities available Add notes as necessary for an understanding of the position Credit standby arrangements	Total facility amount at quarter end $A'000	Total drawn at quarter end $A'000
	-	-
	-	-
	-	-

Include below a description of each facility above, including the lender, interest rate and whether it is secured or 8.4 unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9. Estimated cash outflows for next quarter 9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (provide details if material) 9.8 Total estimated cash outflows Acquisitions and disposals of business entities

10. (items 2.1(b) and 2.2(b) above)

10.1 Name of entity 10.2 Place of incorporation or registration 10.3 Consideration for acquisition or disposal 10.4 Total net assets 10.5 Nature of business

$A'000 74 - - - 22 95 - 191

Acquisitions	Disposals
N/A	N/A

• See chapter 19 for defined terms 1 September 2016

Appendix 4 C Page 4

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

• This statement has been prepared in accordance with accounting standards and policies which comply with

• 1 Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Sign here: Original signed (Company Secretary)

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Date: 31-October-2016

Print name: Melanie Farris

Notes

• The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and

• 1 the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

• If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of,

• 2 AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

• Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending

• 3 on the accounting policy of the entity.

• See chapter 19 for defined terms 1 September 2016

Appendix 4 C Page 5