INVION LIMITED — Interim / Quarterly Report 2017

Oct 26, 2017

ASX ANNOUNCEMENT: APPENDIX 4C

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27 October 2017

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 2017.

The Company held cash reserves of $0.698 million at the end of September, with operating cash outflows during the quarter at $0.199 million.

During the quarter, the Company announced that it had entered into a strategic transaction with The Cho Group Limited. The Transaction comprises three agreements:

1. Exclusive Distribution and Licence Agreement: Invion is to be appointed exclusive distributor and licensee in Australia and New Zealand of New Generation Photo Dynamic Therapy (NGPDT) technology for the treatment of cancers. In return for the exclusive licence, Invion will issue new Invion shares for a licence value of $5.5M at $0.002 per share;

2. R&D Services Agreement: Invion will conduct clinical development of the NGPDT technology globally, initially targeting prostate cancer in Australian-run clinical trials. The Cho Group will provide non-dilutive funding for the clinical trials; and

3. Underwriting Agreement: The Cho Group has agreed to fully underwrite a non-renounceable pro rata entitlement offer to Invion Shareholders, to raise up to approximately $2.5M to fund working capital and the costs of the Transaction.

The NGPDT technology, “ Photosoft ”, is a new generation photosensitiser derived from chlorophyll which is hypothesised to identify and selectively accumulate within solid cancerous tumour tissues. Specific light and laser delivery methods are targeted to activate the absorbed photosensitiser for the non-invasive treatment of solid cancers.

Annual General Meeting, scheduled for 10am on Thursday 30 November at The Brisbane Club. The Company’s Notice of Meeting and Explanatory Memorandum, including an Independent Expert’s Report commissioned by the Company on the Transaction, is due to be lodged with ASX and mailed to shareholders in coming days.

The Company will hold an Investor Presentation and Call at 2pm Monday 13 November 2017. Further details of the presentation and call will be issued following lodgement of the Notice of Annual General Meeting.

An Appendix 4C accompanies this announcement.

For and on behalf of the Board of Invion Limited MELANIE FARRIS Company Secretary

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	Name of entity	Name of entity
INVION LIMITED
ABN 76 094 730 417	Quarter ended(“currentquarter”)
	30-September-2017
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 (12 months) $A’000
	(4) - - - (38) (156) - - (1) - - - -	(4) - - - (38) (156) - - (1) - - - -
	(199)	(199)

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 (12 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
	- - - - - (19) - - -	- - - - - (19) - - -
	**(19) **	(19)
	917 (199) - (19)	917 (199) - (19)

• 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 (12 months) $A’000
4.5 4.6 Cash and cash equivalents at end of quarter Effect of movement in exchange rates on cash held	(1)	(1)
	698	698

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
	698 - - -	917 - - -
	698	917

• 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 (38) 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 4 - - - 50 160 - 214

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: 27-October-2017

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