PHARMX TECHNOLOGIES LIMITED — Interim / Quarterly Report 2021

Jan 28, 2021

Corum Group Limited ABN 25 000 091 305 Level 3, 120 Sussex Street, Sydney NSW 2000 www.corumgroup.com.au

Market Release 29 January 2021

ASX Announcement

Quarterly Activity Report and Appendix 4C 31 December 2020

Principal Activities

Corum Group Limited (ASX:COO) is a technology and software development company. The key business activities relate to Corum Health which develops and distributes business software for the pharmacy industry with emphasis on point-of-sale and pharmaceutical dispensing software, multi-site retail management, support services and computer hardware. Corum Health now also includes PharmX, an electronic gateway that links pharmacies, pharmaceutical wholesalers and direct suppliers within the pharmacy market. Corum eCommerce operates a payment gateway primarily for the real estate and pharmacy sectors.

Key Activities during the December 2020 Quarter

Capital Raise

Following on from the successful capital raise last quarter of $5.6m, Corum completed a further capital raise during the current quarter. $3.3m was raised through a strategic placement of 60,000,000 new shares with Arrotex Pharmaceuticals, Australia's largest generics company. The proceeds from this placement will be used to accelerate key product development and business expansion.

PharmX

The final settlement of $4.3m, inclusive of transaction costs, for the acquisition of the remaining interest in PharmX was made in the quarter. As the transaction was completed in the previous quarter, this was the first full quarter that PharmX cashflows have been consolidated into Corum's result.

BAMM Agreement

As announced on 30 October 2020, agreement has been reached with BAMM regarding the development of a cloud- based Head Office solution. The 63,642,138 fully paid ordinary shares that were to be issued to BAMM pursuant to resolution 4 adopted at the 2019 Corum AGM, will not now be issued.

In consideration for the assignment of the development work completed to date and associated IP, and the other commercial rights being granted, Corum has paid BAMM $800,000 in November 2020, with three further payments of $400,000 being made annually thereafter.

Affiliates of BAMM will remain on-going customers of Corum on arms-length commercial terms.

Quarter review

Corum recorded a positive operating cash flow of $536k for the quarter. This included non recurring operational legal costs of approximately $300k related to the PharmX acquisition and the BAMM Agreement. Corum expects that these costs will be significantly reduced going forward.

Corum ended the quarter with a cash balance of $7.62m.

Payments to related parties of the entity and their associates

During the quarter, $166,000 was paid in fees and salaries to Directors, Key Management Personnel and their related entities.

- ENDS -

This notice has been authorised for release to the ASX by the Board of the Company.

For further information contact: Julian Sallabank, Managing Director

Investor email: companysecretary@corum.com.au

About Corum Group

Corum Group Limited [ASX:COO] (Corum) is an Australian company limited by shares that owns businesses in technology and software development.

For more than 30 years Corum has been using its deep industry expertise and extensive relationships to develop Point-Of-Sale, Dispensing and Management software for pharmacy head offices and retail stores and a range of eCommerce and ordering solutions throughout Australia.

Corum is determined to offer the best solutions to its customers through the products, services and processes of each of its businesses.

Corum Group | Corum Health | Corum eCommerce | PharmX corumgroup.com.au

Sydney | Melbourne | Perth | Brisbane | Adelaide

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity
Corum Group Limited
ABN	Quarter ended ("current quarter")
25 000 091 305	31 December 2020

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (6months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	3,885	6,600
1.2	Payments for
	(a) research and development	-	-
	(b) product manufacturing and operatingcosts	(668)	(1,204)
	(c)advertising and marketing	(56)	(78)
	(d) leased assets	-	-
	(e) staff costs	(1,866)	(3,582)
	(f)administration and corporate costs	(448)	(714)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	10	16
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	(272)
1.7	Government grants and tax incentives	-	1,973
1.8	Other (provide details if material)	(321)	(480)
1.9	Net cash from / (used in) operatingactivities	536	2,259

2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a) entities	-	-
	(b) businesses	-	-
	(c)property, plant and equipment	(168)	(178)
	(d) investments	(4,322)	(8,072)
	(e) intellectual property	(1,392)	(2,099)
	(f)other non-current assets	-	-

ASX Listing Rules Appendix 4C (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms.

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (6months)$A'000
2.2	Proceeds from disposal of:
	(a) entities	-	-
	(b) businesses	-	-
	(c)property, plant and equipment	-	-
	(d) investments	-	-
	(e) intellectual property	-	-
-	(f)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (cash on acquisition of subsidiary)	-	5,975
2.6	Net cash from / (used in) investingactivities	(5,882)	(4,374)

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	2,908	8,544
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues ofequity securities or convertible debtsecurities	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	(896)
3.9	Other (provide details if material)	(119)	(233)
3.10	Net cash from / (used in) financingactivities	2,789	7,415

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	10,180	2,323
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	536	2,259
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(5,882)	(4,374)

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (6months)$A'000
4.4	Net cash from / (used in) financing activities(item 3.10 above)	2,789	7,415
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofperiod	7,623	7,623

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	666	6,238
5.2	Call deposits	6,957	3,942
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	7,623	10,180

6.	Payments to related parties of the entity and theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	166
6.2	Aggregate amount of payments to related parties and theirassociates included in item 2	-
	Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and anexplanation for, such payments.

7.	FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamount at quarterend$A'000	Amount drawn atquarter end$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-
7.5	Unused financing facilities available at quarter end		N/A
7.6	Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well.
	N/A

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	536
8.2	Cash and cash equivalents at quarter end (item 4.6)	7,623
8.3	Unused finance facilities available at quarter end (item 7.5)	-
8.4	Total available funding (item 8.2 + item 8.3)	7,623
8.5	Estimated quarters of funding available (item 8.4 divided byitem 8.1)	N/A
	Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise, afigure for the estimated quarters of funding available must be included in item 8.5.
8.6	If item 8.5 is less than 2 quarters, please provide answers to the following questions:
	8.6.1Does the entity expect that it will continue to have the current level of net operatingcash flows for the time being and, if not, why not?
	Answer: N/A
	8.6.2Has the entity taken any steps, or does it propose to take any steps, to raise furthercash to fund its operations and, if so, what are those steps and how likely does itbelieve that they will be successful?
	Answer: N/A
	8.6.3Does the entity expect to be able to continue its operations and to meet its businessobjectives and, if so, on what basis?
	Answer: N/A
	Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Date: ...................................................................................

Authorised by: ................................................................................... (Name of body or officer authorising release – see note 4)

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow 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.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 1. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.