OSTEOPORE LIMITED — Capital/Financing Update 2019

Sep 22, 2019

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ASX RELEASE│OSTEOPORE LIMITED

Osteopore debuts on the ASX following its well supported IPO

Highlights

• Leading medical technology company, Osteopore Limited (ASX: OSX) lists on the ASX following its well-supported IPO.

• Osteopore successfully raised $5.25 million at $0.20, and closed its IPO early with strong institutional, high net worth and sophisticated investor demand.

• Osteopore specialises in the production of 3D printed bioresorbable implants that are used in conjunction with surgical procedures to facilitate the natural stages of bone healing.

• The Company’s products are FDA and CE Mark cleared, and have been used successfully in over 20,000 surgical procedures with no post-surgery complication rates traditionally associated with long term permanent bone implants.

• Osteopore achieved revenues of approximately A$990,000 for the 12-month period to 31 December 2018, and will embark on a revenue growth strategy that enhances market penetration and expands the company’s product offerings for new therapeutic and surgical areas.

23 September 2019: Osteopore Limited (ASX: OSX) (“Osteopore” or the “Company”), a revenue generating medical technology company that has commercialised a range of patented 3D printed bioresorbable products, specifically engineered to facilitate natural bone healing, is delighted to announce it has today commenced trading on the Australian Securities Exchange (ASX), following a well supported Initial Public Offering (IPO).

The Company raised $5.25 million before costs with strong support received from institutional, high net worth and sophisticated investors. A total of 26,250,000 fully paid ordinary shares at $0.20 per share were issued under the IPO and the Company listed on the ASX with a market capitalisation of $20.2 million. Alto Capital acted as Lead Manager to the IPO and Ventnor Capital acted as Corporate Advisor.

Funds raised from the IPO will be used to support the Company’s growth strategy, with a focus on enhancing market penetration of its Osteoplug, Osteomesh and Osteostrip products in established and emerging international markets, as well as developing new growth opportunities leveraging its expertise in regenerative medicine and medical polymers. The Company also intends to expand its sales and marketing infrastructure across Australia, Asia, USA and Europe.

Company overview

Osteopore Limited is an Australian and Singapore based medical technology company, commercialising a range of patented 3D printed products used for the regeneration of bone across a range of therapeutic areas. The Company currently has three primary products in market, Osteoplug, Osteomesh and Osteostrip that have each received FDA and CE Mark registration and are being sold to hospitals globally. In addition to standard products, Osteopore can also develop customised patient specific products where required to address other therapeutic demands.

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│+618 9482 0500│www.osteopore.com

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The Company has successfully commercialised its technology and has to date achieved over 20,000 successful surgical procedures. As a result, Osteopore has seen revenue increase year-on-year since 2016 and generated S$934,878 (approximately A$990,000) in revenues for the twelve-month period to 31 December 2018.

Products in market

Osteoplug[TM ]

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Osteoplug is a patented 3D printed bioresorbable implant that is used for healing burr holes created during neurosurgery. Its fully interconnected porous matrix architecture allows it to be quickly saturated with marrow, blood and nutrients that encourage bone regrowth and remodelling, and its unique shape allows easy implantation without screws.

Long-term clinical trials have demonstrated significant bone regeneration of the burr hole as the Osteoplug is slowly resorbed by the body and replaced with natural healthy bone.

Osteomesh[TM]

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Osteomesh is a patented 3D printed bioresorbable implant used in craniofacial surgery to repair various types of fractures, such as repairing orbital floor fracture. It can also be used to fill surgical defects. The product is flexible and easy to cut to shape as required from standard sized mesh products. Osteomesh offers a rigid yet flexible scaffold, with sufficient mechanical strength that supports bone in-growth and it degrades as bone regeneration and remodeling takes place.

The Osteomesh’s unique architecture enables rapid saturation with blood, bone marrow and nutrients, thus providing the patient’s own cells with the chemical signals that are required for bone regrowth. Osteomesh is also slowly resorbed by the body and replaced with natural healthy bone.

Osteostrip[TM ]

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Osteostrip provides a durable, biodegradable method of filling the void following a craniotomy – the surgical removal of bone from the skull to expose the brain. It provides rapid and homogenous vascularization after the procedure and ultimately results in high structural integrity and long-term integration with the surrounding bone. The naturally osteoconductive and bioresorbable Osteostrip promotes bone formation due to its 3D printed biomimetic micro architecture. The FDA-cleared Osteostrip fills the void between the cranial flap and the cranium without the need for fixation through screws or other means.

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│+618 9482 0500│www.osteopore.com

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Scalable and customisable manufacturing

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Osteopore’s proprietary 3D printing technology can readily be scaled up to meet any increase in future sales demand. The process is also highly customisable, enabling the Company to produce high margin specialised and patient-specific products where necessary for therapeutic purposes. Osteopore uses advanced proprietary 3D printing technology and its patent portfolio and trade secrets create and maintain a competitive IP advantage.

Growth Strategy

The Company’s growth strategy is to become a world leading producer of pioneering 3D printed medical implants specifically engineered to stimulate and facilitate natural tissue regeneration. Having now completed its IPO, the Company will continue to aggressively implement its expansion strategy, of which the first phases are outlined below.

• Significantly increase market penetration of the Osteoplug, Osteomesh and Osteostrip products;

• Invest in sales and marketing activities and infrastructure in USA, EU, Australia and Asia;

• Obtain the necessary regulatory approval to expand applications in target jurisdictions (e.g. Australian TGA, and registration of 2nd generation materials with US FDA and CE Mark);

• Undertake market development and business development activities to further enhance revenue; and

• Further expand the Company’s product offering, specifically into the dental, orthopaedic and long bone market segments. The Company intends to, where appropriate, establish local representative offices in key target markets in order to establish licencing arrangements with local manufacturers and distributors.

Brett Sandercock, Non-Executive Chairman of Osteopore comments:

“We are excited by the possibilities for improving health outcomes for patients as the Osteopore technology is increasingly used by surgeons globally. The funds from the IPO will greatly accelerate our sales and marketing efforts and enable the Company to increasingly supply products to key global markets”

Geoff Pocock, Executive Director of Osteopore comments:

’We are extremely pleased by the support for the Company from Australian and international investors, and the success of Osteopore’s IPO raising shows the strong appetite from ASX investors for well-priced technology investment opportunities. Our focus now is on execution of our business plan to build value in the Company for shareholders.”

ENDS

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│+618 9482 0500│www.osteopore.com

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For more information please contact:

Investor enquiries Geoff Pocock Osteopore Limited P: +61 4 1219 4373 E: geoff_pocock@osteopore.com

Media enquiries Hannah Howlett Media and Capital Partners P: +61 4 5064 8064 E: hannah.howlett@mcpartners.com.au

About Osteopore Limited

Osteopore Ltd is an Australian and Singapore based medical technology company commercialising a range of bespoke products specifically engineered to facilitate bone healing across multiple therapeutic areas. Osteopore's patented technology fabricates specific micro-structured scaffolds for bone regeneration through 3D printing and bioresorbable material.

Osteopore's patent protected scaffolds are made from proprietary polymer formulations, that naturally dissolve overtime to leave only natural. healthy bone tissue, significantly reducing postsurgery complications that are commonly associated with permanent bone implants.

Osteopore Limited (ACN 630 538 957)│ASX:OSX│16 Ord Street, West Perth│+618 9482 0500│www.osteopore.com