INVION LIMITED — Interim / Quarterly Report 2016

Jul 28, 2016

ASX ANNOUNCEMENT: APPENDIX 4C

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29 July 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 June 2016.

The Company held cash reserves of $0.437 million at the end of June, with cash outflows during the quarter at $0.444 million.

As R&D activity has historically accounted for the main operating cash outflow for the Company, outflows continue to be reduced from previous quarters, reflecting reduced activity following the completion of major R&D program milestones. These milestones include the March 2016 meeting with the US FDA, and the May 2016 presentation of data to the American Thoracic Society, regarding the smoking cessation program for INV102 (nadolol) following the successful completion of the phase 2 clinical trial in late 2015.

The Company is now focussed on business development, and the partnering (via sale or out-licence) of one or all of its assets. As such, and as noted in the March Appendix 4C, the company reduced headcount to align resourcing with the requirements of forward activities, and to further significantly reduce burn rate.

Anticipated receipt of R&D cash rebate

The Company has completed the required reviews and has met all prerequisites in order to submit its application for an R&D cash rebate against spend on local and overseas R&D activities conducted during the year ended 30 June 2016.

As a result, the Company anticipates receiving a cash rebate of $0.619 million during the current quarter.

The Company believes that these cash inflows, combined with cash on hand and reduced operating cash outflows, will see the Company continue operations during the 2017 financial year without the need to raise further capital.

The Company is driven to realise value from its assets via a commercial transaction following the successful completion of its major R&D milestones.

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 admitted on the basis of commitments

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001

Name of entity
INVION LIMITED
ABN 76 094 730 417	Quarter ended(“currentquarter”)
76 094 730 417	30-June-2016

Consolidated statement of cash flows

Cash flows related to operating activities Payments for (a) staff costs (b) patent costs (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 1.5 1.6 Income taxes paid 1.7 Other (a) Research & Development tax refund (b) Other 1.1 Receipts from customers 1.2 Interest and other items of a similar nature received Interest and other costs of finance paid Net operating cash flows	Current quarter $A’000	Year to date (12 months) $A’000
	(286) (57) (156) (1) (173) - - - - - - 229	(1,616) (210) (3,130) (8) (1,616) - - (62) - 2,406 - 369
	(444)	(3,867)

Appendix 4 C Page 1

Appendix 4C Quarterly report for entities admitted on the basis of commitments

	Current quarter $A’000	Year to date (12 months) $A’000
1.8 Net operatingcash flows(carried forward)	(444)	(3,867)
(a) businesses (b) equity investments (c) intellectual property (d) physical current assets (e) other non-current assets (a) businesses (b) equity investments (c) intellectual property (d) physical current assets (e) other non-current assets 1.11 Loans to other entities 1.12 1.13 Net investing cash flows 1.14 Other - Bank guarantee repaid Cash flows related to investing activities 1.9 Payment for acquisition of: 1.10 Proceeds from disposal of: Loans repaid by other entities Total operating and investing cash flows	- - - - - - - - - - - - 25	- - - - - - - - - - - - 25
	25	25
	(419)	(3,842)
1.15 1.16 1.17 1.18 1.19 Dividends paid 1.2 Net financing cash flows Repayment of borrowings Other Creditors (costs of fund raising) Cash flows related to financing activities Proceeds from shares not yet issued Proceeds from borrowings Proceeds from issues of shares	5 - - - -	3,115 - - (974) - (213)
	5	1,928
1.21 1.22 1.23 Exchange rate adjustments to item 1.20 Cash at end ofquarter/year to date Net increase (decrease) in cash held Cash at beginning of quarter/year to date	(414) 852 (1)	(1,914) 2,285 66
	437	437

Appendix 4 C Page 2

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.24 1.25 Aggregate amount of payments to the parties included in item 1.2 (a) Aggregate amount of loans to the parties included in item 1.11	Current quarter $A'000
	94
	-
1.26 Explanation necessary for an understanding of the transactions

Payments to directors includes directors fees and executive directors salaries.

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and 2.1 liabilities but did not involve cashflows

N/A

Details of outlays made by other entities to establish or increase their share in businesses in which the reporting 2.2 entity has an interest

N/A

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

3.1 Loan facilities 3.2 3.3 Convertible loan facility Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-
	-	-

Appendix 4 C Page 3

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details) Cash on hand and at bank	437	852
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	437	852

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 5.3 5.4 Total net assets 5.5 Nature of business Place of incorporation or registration Consideration for acquisition or disposal	Acquisitions	Disposals
	N/A	N/A

Compliance statement

This statement has been prepared under accounting policies which comply with accounting standards as defined 1 in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

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

Sign here: Original signed Date: 29-July-2016 (Company Secretary)

Print name: Melanie Farris

Appendix 4 C Page 4