PYC THERAPEUTICS LIMITED — Capital/Financing Update 2019

Nov 3, 2019

ASX ANNOUNCEMENT

4 November 2019

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PYC’s institutional offer closes after excess applications

Phylogica Limited (the Company ) is pleased to announce that it has successfully completed the institutional component of the $26.8 million fully underwritten accelerated non-renounceable entitlement offer ( Entitlement Offer ) announced on 31 October 2019. The institutional component of the Entitlement Offer raised approximately $14.3 million before costs through the issue of approximately 260 million new shares at an issue price of $0.055 per share ( Institutional Entitlement Offer ). Settlement of the new shares to be issued under the Institutional Entitlement Offer is expected to take place on 7 November 2019.

The Institutional Entitlment Offer included $6.2 million of take-up of entitlements from existing major investors and $8.1m of placement of shortfall from the entitlements of existing major investors. The institutional bookbuild conducted to complete the Institutional Entitlement Offer attracted strong interest in excess of the shares available for allocation. Accordingly, no shares from the Institutional Entitlement Offer shortfall were subscribed for by the Underwriter under the Underwiting Agreement.

CEO Dr Rohan Hockings said " Our lead drug program holds great promise to change the lives of patients living with retinitis pigmentosa. PYC now has the funding required to take this program through clinical development to address that unmet patient need ”.

-Q New shares issued under the Institutional Entitlement Offer will rank equally with existing shares. The new shares under the Institutional Entitlement Offer are expected to be allocated on Thursday, 7 November 2019. Trading will commence on a normal settlement basis of the Australian Securities Exchange ( ASX ) on the following day.

Commencement of the Retail Entitlement Offer

The retail component of the Entitlement Offer, which has been fully underwritten, will raise a further $12.3 million ( Retail Entitlement Offer ).

The Retail Entitlement Offer will open on Thursday, 7 November 2019 and will close at 5:00 pm (WST) on Monday, 18 November 2019 (unless varied).

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Eligible shareholders on the Record Date of 5.00 pm (WST) on Monday, 4 November 2019 may participate in the Retail Entitlement Offer at the same price ($0.055 per share) and offer ratio (1 new share for every 5 shares held) as the Institutional Entitlement Offer.

The terms and conditions under which eligible retail shareholders may apply are outlined in the Relail Offer Document which will be despatched to eligible retail shareholders on Thursday, 7 November 2019.

Overseas Shareholders

Shareholders with a registered address outside Australia and New Zealand on the Record Date will be ineligible to participate in the Retail Entitlement Offer. The Company has applied to the Australian Securities and Investment Commision ( ASIC ) to appoint a nominee under section 615 of the Corporations Act to arrange the sale of entitlements of overseas shareholders. The Entitlement Offer remains subject to ASIC's approval of the Company's application to appoint the Nominee. For more details, please see the Company's presentation released to ASX on 31 October 2019 and the Retail Offer Document once available.

Retail Investor Enquiries

If you have any queries concerning the entitlement offer, or the action you are required to take to subscribe for new shares, please consult your stockbroker, accountant, solicitor or other professional advisor. For further information about the entitlement offer you can call the Company on +61 8 6151 0992 at any time between 8:30am and 5:00pm (WST), Monday to Friday.

Important information

Nothing contained in this announcement constitutes investment, legal, tax or other advice. You should make your own assessment and take independent professional advice in relation to the information and any action on the basis of the information.

ENDS For further information, please contact:

INVESTORS Rohan Hockings CEO info@pyctx.com

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

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About PYC Therapeutics

Phylogica Limited trading as PYC Therapeutics (ASX: PYC) is a drug development company solving a major challenge in the development of a revolutionary new class of drugs – delivering large drugs into cells. Cell Penetrating Peptides (CPPs) can overcome ‘the delivery challenge’ and provide access for a wide range of potent and precise drug ‘cargoes’ to the ‘undruggable genome’ – the highest value drug targets that exist inside cells. PYC Therapeutics is using its CPP platform to develop a pipeline of novel therapies with an initial focus on inherited retinal diseases.

Forward looking statements

Any forward-looking statements in this ASX announcement have been prepared on the basis of a number of assumptions which may prove incorrect and the current intentions, plans, expectations and beliefs about future events are subject to risks, uncertainties and other factors, many of which are outside the Company’s control. Important factors that could cause actual results to differ materially from assumptions or expectations expressed or implied in this ASX announcement include known and unknown risks. Because actual results could differ materially to assumptions made and the Company’s current intentions, plans, expectations and beliefs about the future, you are urged to view all forward-looking statements contained in this ASX announcement with caution. The Company undertakes no obligation to publicly update any forward-looking statement whether as a result of new information, future events or otherwise.

This ASX announcement should not be relied on as a recommendation or forecast by the Company. Nothing in this ASX announcement should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

Tel: +61 8 6151 0994 pyctx.com

Phylogica Limited trading as PYC Therapeutics

ACN 098 391 961

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