THORNEY TECHNOLOGIES LTD — Net Asset Value 2023

Aug 13, 2023

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INVESTMENT UPDATE AND NTA REPORT
JULY 2023
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PORTFOLIO SNAPSHOT: NET TANGIBLE ASSET BACKING PER SHARE (NTA)

NTA Current Month	Before Tax1	After Tax1
31-July-23	26.7 cents	32.8 cents
NTA Previous Month	Before Tax1	After Tax1
30-June-23	26.0 cents	32.2 cents

¹ Figures are unaudited and approximate.

INVESTMENT PERFORMANCE

KEY ASX INFORMATION (AS AT 31 JULY 2023)

ASX Code	TEK
Structure	Listed Investment
	Company
Inception Date	January 2017
Market	$76.9 million
Capitalisation
Share Price	18.5 cents
Shares on Issue	415,706,854
Management Fee	0.75% half yearly
Performance Fee	20% of net portfolio
	increase over pcp
Manager	Thorney Investment
	Group

As at 31 July 2023 1 Month 1 Year Since Inception	As at 31 July 2023 1 Month 1 Year Since Inception	As at 31 July 2023 1 Month 1 Year Since Inception	As at 31 July 2023 1 Month 1 Year Since Inception	As at 31 July 2023 1 Month 1 Year Since Inception	As at 31 July 2023 1 Month 1 Year Since Inception	As at 31 July 2023 1 Month 1 Year Since Inception
Before Tax After Tax Before Tax After Tax Before Tax After Tax
TEK investment portfolio	2.85%	1.81%	-22.09%	-14.17%	4.34%	8.77%
S&P Small Ordinaries Accum. Index	3.54%	3.54%	0.77%	0.77%	6.90%	6.90%
Performance versus Index	-0.69%	-1.73%	-22.86%	-14.94%	-2.56%	1.87%

TEK SECURITIES

	LISTED SECURITIES	LISTED SECURITIES			UNLISTED SECURITIES	UNLISTED SECURITIES
			% of Total			% of Total
Rank	Company	Code	Portfolio	Rank	Company	Portfolio
1	Calix	CXL.ASX	11.4	1	Updater	1.9
2	Avita Medical	AVH.ASX	7.3	2	Mosh	1.8
3	Clarity Pharmaceuticals	CU6.ASX	2.9	3	360 Capital Fibreconx Trust	1.7
4	DUG Technology	DUG.ASX	2.7	4	Enlitic Inc.	1.5
5	Imugene	IMU.ASX	2.2	5	Finclear	1.4

ALLOCATION OF INVESTMENTS

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12%
Listed securities
Unlisted securities
31%
57%
Cash
CASH BALANCE AND AVAILABLE FACILITIES
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• Cash held short-term with the major banks $12.9 million

• Prime broker facilities available: undrawn as at 31 July 2023

THORNEY TECHNOLOGIES LTD | Level 39, 55 Collins St. Melbourne VIC 3000 Australia | ABN: 66 096 782 188

Below is a sample of company news released by some of the listed portfolio companies.

LISTED SECURITIES

CALIX LIMITED

• Calix Limited (ASX.CXL) provided an update on its anticipated First Investment Decision (FID) regarding its JV with Pilbara Minerals (ASX.PLS).

• FID has been made to progress the construction and operation of a Mid-Stream Demonstration Plant.

• The project aims to demonstrate the benefits of producing a mid-stream lithium enriched product using CXL’s patented electric kiln technology which has the potential to reduce hard rock lithium processing carbon emission intensity if powered by renewable energy.

• It is estimated that the construction costs of $104.9 million will be funded with CXL contributing $17.5 million and PLS contributing $67.4 million as well as $20.0 million via an Australia Government grant that was awarded to PLS (Modern Manufacturing Initiative).

• The project at full production is estimated to produce more than 3,000 tonnes per year of lithium phosphate.

• Successful demonstration of the mid-stream process may lead to a commercial scale plant being built as part of Pilbara Minerals future mid-stream strategy and to future commercialisation of the calcination technology, with the JV licensing the technology to the global spodumene processing industry.

• Thorney View: We are optimistic about CXL’s position to deliver superior returns due to its robust management team, solid agreement pipeline and promising technology.

CLARITY PHARMACEUTICALS LIMITED

• Clarity Pharmaceuticals Limited (ASX.CU6) announced it had reached the 50% recruitment milestone for Phase II SABRE prostate cancer trial with with 25 out of 50 participants enrolled and imaged.

• SABRE is a Phase II Positron Emission Tomography (PET) imaging trial of participants with PSMA (prostate-specific membrane antigen)-negative biochemical recurrence (BCR) of prostate cancer following definitive therapy. It is a multi-centre, single arm, non-randomised, open-label trial of 64Cu-labelled SARBombesin in 50 participants

• CU6 also announced the successful completion of cohort 3 in the theranostic 64 Cu/ 67 Cu SARTATE neuroblastoma trial.

• The Company is now progressing to the final cohort in the CL04 trial, where the highest dose in the dose escalation phase of the trial is administered.

• Thorney View: We view radiopharmaceuticals as an exciting and prospective space. CU6 has six products under IND for US clinical trials, and whilst commercialisation is three years away, the Company is well capitalised to go on the journey.

IMUGENE LIMITED

• Imugene Limited (IMU.ASX) announced that its Phase I clinical trial of its oncolytic virotherapy candidate, CHECKvacc will proceed to the fourth dose cohort. Oncolytic virus therapy uses modified viruses that infect and destroy tumor cells.

• After a review of all safety and tolerability data for the first 3 cohorts dosed, CHECKvacc was deemed to be safe with no dose-limiting toxicities (DLTs) and no serious adverse reactions observed.

• The first-in-human, Phase 1, single-centre, dose escalation study of CHECKvacc is recruiting patients with triple negative breast cancer (TNBC).

• The purpose of the study is to evaluate the safety and initial evidence of efficacy of intra-tumoural administration of CHECKvacc against metastatic TNBC.

• IMU also announced a strategic research collaboration with clinical-stage biopharmaceutical company, RenovoRx, Inc. (“RenovoRx”) (Nasdaq: RNXT) to optimize the delivery of Imugene’s oncolytic virus therapy with RenovoRx’s TAMP (Trans-Arterial Micro-Perfusion) therapy platform for the treatment of difficult-toaccess tumours, such as pancreatic and liver cancers.

• The collaboration will investigate the ability to administer Imugene’s CF33 oncolytic virus technology with RenovoRx’s TAMP therapy platform.

• IMU also announced that a core US patent was allowed which protects VAXINIA and CHECKVacc in this major oncology market to 2037.

• Thorney view: We remain optimistic about IMU with several clinical trials underway. IMU is currently well capitalised to fund these trials and pursue the delivery of shareholder value.

Investment Update and NTA Report | July 2023 2

DUG TECHNOLOGY LIMITED

• DUG Technology Ltd (ASX.DUG) announced the execution of a Financial Assistance Agreement (“FAA”) with the Western Australian State Government and will receive A$5 million in grant funding for the first data hall of its Geraldton High Performance Computing (“HPC”) Campus.

• The first data hall will have a capacity of 400 petaflops of compute, enabling a thirteen-fold growth in DUG’s compute power once fully established. This would place the facility amongst the largest supercomputers in the world.

• Flops or floating point operations per second is a measure of computer performance. A petaflop a unit of computing speed equal to one thousand million (1015) floating-point operations per second.

• Funds under the agreement will be disbursed over a two-year period with the initial spend on the construction of the first data hall and connected infrastructure, with the grant funding up to half of these costs. The Company will fund remaining costs through existing funds and cash from operations.

• The Company will now proceed to sign a lease for 44.5 hectares of land for the construction of the Campus and associated infrastructure and intends to develop onsite sustainable energy solutions.

• The Campus will deploy DUG’s patented, immersion cooling solution, DUG Cool, which reduces power consumption by more than 50% compared to a traditional air-cooled data centre. This technology enables DUG to build cost-effective and highly energy-efficient data centres.

• The Campus is designed to accommodate a total of ten data halls with a potential 4 exaflop (4,000 petaflops) capacity.

• Thorney view: The recovery in the oil and gas industry has led to a strong recovery in DUG’s cash flow and share price. We expect the industry tailwinds to continue whilst DUG’s management team focuses on building out additional computing power at its newly announced Geraldton site, as well as the increasing use of Full Waveform Inversion (FWI) throughout its customer base.

CHAIRMAN’S COMMENTS

Alex Waislitz said: “Whilst the outlook for technology stocks remains choppy, we are positive on the longterm outlook for the sector given current valuation levels, M&A activity in the sector and the recent bounce back by large-cap technology stocks which we believe will eventually flow through to the small-cap and mid-cap companies in the sector. Many technology names are still looking more attractive at current levels given the broad sell off in the sector, providing opportunities for investors. Our view is that the revolutionary power of disruptive technology to improve lives, create new and more efficient businesses, stimulate economies and generate wealth is only just beginning. We continue to be active with the on-market share buyback, one initiative designed to reduce the share price to NTA discount

INVESTMENT PHILOSOPHY

TEK seeks to identify early-stage companies with new and disruptive technology and business models, investing in a broad range of areas of technology, such as fin-tech, e- commerce, education, agriculture, medical, telecommunication, robotics and AI.

KEY CONTACTS

Corporate

Craig Smith - Company Secretary E: craig.smith@thorney.com.au T: + 61 3 9921 7116

Investors

INVESTMENT OBJECTIVES

• Deploy investment capital into listed and unlisted technology companies

Gabriella Hold – Automic Group E: gabriella.hold@automicgroup.com.au T: + 61 411 364 382

• Producing absolute returns for shareholders over the medium to long-term

ABOUT THORNEY TECHNOLOGIES

Thorney Technologies Ltd (TEK) is an ASX-listed investment company (LIC), with a broad mandate to invest in technology-related investments at all phases of the investment lifecycle. As well, TEK seeks to identify early-stage companies with new and disruptive technology and business models and invests in a broad range of areas of technology, such as fin-tech, e-commerce, education, agriculture, medical, telecommunication, robotics and AI. High quality deal flow is generated via our networks established in Australia, Israel and USA for investment opportunities in both listed and unlisted entities.

TEK is managed by the privately owned Thorney Investment Group pursuant to a long-term investment management agreement. You can invest in TEK by purchasing shares on the Australian Securities Exchange (ASX). For more information visit: https://thorney.com.au/thorney-technologies/

This monthly report has been prepared by Thorney Management Services Pty Ltd (TMS) ABN 88 164 880 148, AFSL 444369. TMS is the investment manager of Thorney Technologies Ltd (TEK or Company) ACN 096 782 188. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. This information does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of the Company’s securities. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. References to securities in this publication are for illustrative purposes only and are not recommendations and the securities may or may not be currently held by the Company. Past performance is not indicative of future performance. This information is believed to be accurate at the time of compilation and is provided in good faith. No company in the Thorney Investment Group (Thorney Investment Group Australia Limited ABN 37 117 488 892 and its subsidiaries including TMS) nor the Company guarantees the performance of the Company or the return of an investor’s capital.

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