THORNEY TECHNOLOGIES LTD — Net Asset Value 2024

Feb 12, 2024

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INVESTMENT UPDATE AND NTA REPORT
JANUARY 2024
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PORTFOLIO SNAPSHOT: NET TANGIBLE ASSET BACKING PER SHARE (NTA¹)

NTA Current Month	Before Tax	After Tax2
31-Jan-24	23.4 cents	28.1 cents
NTA Previous Month	Before Tax	After Tax2
31-Dec-23	23.9 cents	28.6 cents

¹ All figures are unaudited and approximate.

² After Tax NTA includes the effect of a deferred tax asset.

INVESTMENT PERFORMANCE[*]

KEY ASX INFORMATION (AS AT 31 JANUARY 2024)

ASX Code	TEK
Structure	Listed Investment
	Company
Inception Date	January 2017
Market	$62.7 million
Capitalisation
Share Price	15.5 cents
Shares on Issue	404,807,426
Management Fee	0.75% half yearly
Performance Fee	20% of net portfolio
	increase over pcp
Manager	Thorney Investment
	Group

Performance Fee 20% of net portfolio increase over pcp Manager Thorney Investment Group INVESTMENT PERFORMANCE*	Performance Fee 20% of net portfolio increase over pcp Manager Thorney Investment Group INVESTMENT PERFORMANCE*	Performance Fee 20% of net portfolio increase over pcp Manager Thorney Investment Group INVESTMENT PERFORMANCE*	Performance Fee 20% of net portfolio increase over pcp Manager Thorney Investment Group INVESTMENT PERFORMANCE*
As at 31 January 2024 1 Month 1 Year Since Inception TEK investment portfolio -2.13% -22.55% 1.78% S&P Small Ordinaries Accum. Index 0.90% 2.10% 7.17% Performance versus Index -3.03% -24.65% -5.39%
	-2.13%	-22.55%	1.78%
	0.90%	2.10%	7.17%
	-3.03%	-24.65%	-5.39%

*Investment performance is calculated on a before tax basis

TEK SECURITIES

	LISTED SECURITIES	LISTED SECURITIES			UNLISTED SECURITIES	UNLISTED SECURITIES
			% of Total			% of Total
Rank	Company	Code	Portfolio	Rank	Company	Portfolio
1	Clarity Pharmaceuticals	CU6.ASX	8.3	1	Splitit Payments	2.3
2	Avita Medical	AVH.ASX	7.9	2	Mosh	2.1
3	Calix	CXL.ASX	5.8	3	360 Capital Fibreconx Trust	2.0
5	DUG Technology	DUG.ASX	3.5	4	Updater	1.7
5	Credit Clear	CCR.ASX	3.0	5	WSC Technologies	1.7

ALLOCATION OF INVESTMENTS

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6%
Listed securities
32%
Unlisted securities
62%
Cash
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CASH BALANCE AND AVAILABLE FACILITIES

• Cash held short-term with the major banks $5.6 million

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

THORNEY TECHNOLOGIES LTD | Level 45, 55 Collins St. Melbourne VIC 3000 Australia | ABN: 66 096 782 188

INVESTEE COMPANY UPDATES

UPDATER INC.

• Updater recently provided shareholders with an update on its strategic and operational progress.

• Despite ongoing delays in the commencement of the Global Household Goods contract for the US Military, we are encouraged by the Company’s shift in focus from growth to profitability.

• Following recent operational changes, the Company is predicting it will generate positive cash in 2024.

• Thorney view: With improvements in the Updater platform having been made and the impending commencement of the Global Household Goods contract, the Company anticipates 2024 being a year of material improvement. We are maintaining a cautious attitude towards both the outlook and carrying value of the Company.

CALIX LIMITED

• Calix Limited (ASX.CXL) announced the Leilac-2 (Low Emissions Intensity Lime And Cement) project will move to another Heidelberg Materials’ site.

• The move follows a decision by Heidelberg Materials to end clinker production at its Hanover cement plant due to a “substantial decline in cement sales following weak construction demand in Germany due to the current economic environment as well as a stronger alignment of the company’s cement portfolio towards low-carbon products, leading to the production of cement with reduced clinker content.”

• CXL and its subsidiary, Leilac, are currently working with Heidelberg Materials to identify a suitable new site for the project as soon as possible.

• It has delivered a unique and elegant modular design that aims to demonstrate an efficient, economic and scalable solution for the cement and lime industries to capture their unavoidable process emissions and provide flexible and future-proof fuel optionality.

• Calix Managing Director and CEO, Phil Hodgson said, “We will work closely with Heidelberg Materials and our Leilac Consortium partners on the relocation options. Once chosen, we would expect around six months additional engineering work associated with site integration specifics. The Leilac-2 module is basically ready-to-build, with long lead items already being procured, and we look forward to continuing to work with Heidelberg Materials and our Leilac consortium partners to bring the Leilac-2 project to a successful conclusion.”

• Thorney view: The market reacted negatively to this announcement with the stock sold off. There is no change to our investment thesis, and we have used this opportunity to increase our holding in CXL.

AVITA MEDICAL LIMITED

• Avita Medical Limited (ASX.AVH) announced preliminary unaudited financial highlights for the Q4 and fullyear 2023 and provided financial guidance for the Q1 and full-year 2024.

• AVH said commercial revenue for Q4 2023 is expected to be ~$14.1 million, an increase of ~50% compared to the same period in 2022.

• Commercial revenue for the full-year 2023 is expected to be ~$49.8 million, an increase of ~46% compared to full-year 2022, while gross margin for the full-year 2023 is expected to be ~84.5%.

• AVH added that commercial revenue for the first quarter 2024 is expected to be in the range of $14.8 to $15.6 million, reflecting growth at the lower bound of ~42% and upper bound of ~50% over the same period in the prior year.

• Commercial revenue for the full-year 2024 is expected to be in the range of $78.5 to $84.5 million, reflecting growth at the lower bound of ~57% and upper bound of ~69% over the full-year 2023.

• Thorney view: We remain positive about AVH and confident that going forward it will achieve a broadening of its product offering and revenue growth.

Investment Update and NTA Report | January 2024 2

IMUGENE LIMITED

• Imugene Limited (ASX.IMU) announced that its Phase 1 MAST (metastatic advanced solid tumours) trial evaluating the safety of VAXINIA, has continued to progress with the first patients dosed in each arm of the higher dose cohort as part of the Phase 1 study.

• In the monotherapy dose escalation, cohort 5 of the trial’s intratumoural (IT) and intravenous (IV) arm are now open with the first patients dosed on 16 January and 18 January 2024, respectively.

• IMU said 38 patients had been dosed with VAXINIA as at 12 January 2024 during the continuing dose escalation phase, comprised of 19 patients dosed intratumourally and 19 patients dosed intravenously as either monotherapy or in combination with pembrolizumab.

• 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.

COMPANY NEWS

TEK 1H FY2024 RESULTS

• TEK will release its results for the half year ended 31 December 2023 (1H FY2024) on or around Monday 26 February 2024.

• TOP’s half year results presentation will be available on the Group’s website on 26 February 2024 at: https://www.thorney.com.au/thorney-technologies/news-announcements/

CHAIRMAN’S COMMENTS

Alex Waislitz said: “We remain optimistic on the outlook for small cap technology stocks in 2024 given increasing expectations of interest rate cuts across the globe and hopes for a softer economic landing. We believe there has never been a better time to invest in the exciting and disruptive technology sector with the heavy sell off in the sector over the past 12-18 months presenting very attractive buying opportunities. We believe patient investors are well placed to be rewarded over the long term and maintain our view that in the mid to longer term, the intrinsic value contained within the TEK the portfolio will manifest. At the Company’s AGM, I announced the proposed introduction of a high watermark for TEK, commencing 1 July 2023, an additional initiative to address the share price to NTA discount. We also continue to be active with our on-market share buyback.

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 Markets 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 technologyrelated 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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