INVION LIMITED — Interim / Quarterly Report 2017

Jul 30, 2017

ASX ANNOUNCEMENT: APPENDIX 4C

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31 July 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 June 2017.

The Company held cash reserves of $0.917 million at the end of June, with operating cash outflows during the quarter at $0.107 million.

During the quarter, the Company announced that it had entered into a strategic alliance with The Cho Group, a Hong Kong based group that funds and has successfully commercialised a number of unique and advanced technologies.

In support of the alliance, The Cho Group made an equity investment in Invion Limited, in the form of a private placement. Total investment funds of $656,682 were received in two tranches during the quarter, and a total of 218,894,000 new shares were issued on receipt of funds.

The alliance with The Cho Group represents an opportunity for Invion to expand its business and develop its asset pipeline through the identification and in-licencing of new advanced clinical opportunities, and activities during the quarter have been directed to this objective. A provision for costs related to the completion of a transaction have been captured in the forecast costs for the September quarter.

The Company has also continued to market the partnering, sale or out-licence of its current respiratory assets.

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

INVION LIMITED

ABN 76 094 730 417	Quarter ended(“currentquarter”)	Quarter ended(“currentquarter”)
	30-June-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 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 1.1 Receipts from customers Interest received Dividends received (see note 3) Cash flows from operating activities Other (provide details if material) Interest and other costs of finance paid	Current quarter $A’000	Year to date (12 months) $A’000
	(1) - - - (19) (86) - - (1) - - - -	(190) - - 1 (79) (592) - - (11) - 610 - -
	(107)	(261)

2. 2.1 Payments to acquire: (c) investments (b) businesses (see item 10) Cash flows from investing activities (a) property, plant and equipment	- - -	- - -

• 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 (e) other non-current assets Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (e) other non-current assets Cash flows from loans to other entities Dividends received (see note 3) Other (provide details if material) Net cash from/(used in ) investing activities	- - - - - - - - - -	- - - - 53 - - - - -
	-	53
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 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 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)
	657 - - (6) - (18) - - -	661 - - (6) 56 (18) - - -
	633	693
	391 (107) - 633	437 (261) 53 693

• 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	Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.5 4.6 5. 5.1 5.2 5.3 5.4 5.5 6. 6.1 6.2 6.3	- (5) 917 917 Current quarter $A'000 Previous quarter $A'000 Bank Balances 917391 Call deposits - - Bank overdrafts - - Other (provide details) - - 917 391 Payments to directors of the entity and their associates Current quarter $A'000 (18) - Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 Cash and cash equivalents at end of quarter Effect of movement in exchange rates on cash held Aggregate amount of cash flow from loans to these parties included in item 2.3 Aggregate amount of payments to the parties included in item 1.2 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)	-	(5)
		917	917
		Current quarter $A'000	Previous quarter $A'000
		917 - - -	391 - - -
		917	391
			Current quarter $A'000
			(18) -
	Payments to directors includes directors fees and executive directors salaries.

7.	Payments to related entities of the entity and their associates	Current quarter $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		-
7.3	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

$A'000 30 - - - 89 293 - 412

• 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

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 Date: 31-July-2017 (Company Secretary)

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