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USCOM LIMITED Capital/Financing Update 2014

May 14, 2014

65979_rns_2014-05-14_813f3cbf-d118-4d54-b17d-ac9f8767fb34.pdf

Capital/Financing Update

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Uscom Limited

ABN 35 091 028 090 Suite 1, Level 7, 10 Loftus Street Sydney NSW 2000 Australia T +612 9247 4144 F +612 9247 8157 www.uscom.com.au

M A R K E T A N N O U N C E M E N T

Uscom Announces Successful Capital Raising Funding to provide additional working capital for commercialisation of USCOM 1A and BP+

15 May 2014, Sydney Australia: Uscom ( ASX code: UCM )

Uscom Limited ( Uscom or the Company ) is pleased to announce it has successfully completed a placement to institutional and sophisticated investors in Australia, to raise approximately $1.4 million at 24c per New Share (the Placement ). The price of shares in the Placement represents a 17% discount to the last closing price of the Company’s shares on 12 May 2014.

The Placement was well supported by new institutional and sophisticated investors as well as existing shareholders. Uscom intends to use the proceeds raised from the Placement for working capital associated with the manufacture and commercialisation of its products the USCOM 1A and the BP+.

Hawkesbury Partners acted as lead manager for the Placement.

Executive Chairman of Uscom, Rob Phillips said, “We are delighted with the result of this capital raising and in particular the support of a number of new institutions and family offices which have participated along with a number of our existing shareholders. The funds raised will provide valuable additional resources to support new manufacturing activities and assist us to maintain the sales momentum we are building in the USCOM 1A and the BP+. This year is a milestone year for Uscom as we aim to execute on our business plan to increase revenues and achieve profitability.

The interest shown by institutions in this Placement is very encouraging and we plan to continue to build greater awareness of Uscom among a wider group of investors.”

Details of the Placement

Under the Placement, binding commitments have been received to subscribe for 5,783,337 new shares at a price of 24 cents per share, representing approximately $1.4 million. These shares will be issued under the Company’s 10% capacity under ASX Listing Rule 7.1A.

The Placement was only available to investors in Australia who qualified as professional or sophisticated investors under the requirements of the Corporations Act 2001 (Cth).

The shares in the Placement are expected to be issued on or around 20 May 2014. Those shares will rank equally in all respects with existing ordinary shares currently on issue.

The investor presentation for the Placement is attached to this Announcement.

Uscom Limited ABN 35 091 028 090 Suite 1, Level 7, 10 Loftus Street Sydney NSW 2000 Australia T +612 9247 4144 F +612 9247 8157 www.uscom.com.au

M A R K E T A N N O U N C E M E N T

About Uscom

Uscom Limited is an ASX listed cardiovascular medical device company (UCM). Uscom is an innovative developer and manufacturer of premium cardiovascular devices and has two practice leading technologies in the field of cardiovascular monitoring, the USCOM 1A and the BP+. The devices are both clinically validated with FDA, CE and TGA regulatory approval, and are currently being marketed into global distribution networks.

The USCOM 1A is a simple, cost-effective and non-invasive device that measures heart function, detects irregularities and guides treatment. The USCOM device has major applications in Paediatrics, Emergency, Intensive Care Medicine and Anesthesia, and is the device of choice for management of adult and paediatric sepsis, and for the guidance of fluid therapy.

The Uscom BP+ is a supra systolic Central Blood Pressure monitor and replaces older and more widespread BP sub systolic Blood Pressure monitoring technology. Central Blood Pressure is becoming the new standard of care measurement in hypertension and heart failure. The Uscom BP+ provides a highly accurate & repeatable measurement of central and brachial blood pressure and pulse pressure waveforms using a familiar upper arm cuff. The BP+ is simple to use and requires no complex training with applications in cardiology, intensive care, general practice and home care.

For more information, please visit: www.uscom.com.au

Uscom Contacts Rob Phillips Executive Chairman [email protected]

Catherine Officer Company Secretary [email protected]

Premium non-invasive cardiovascular monitoring for global medical markets

Capital Raising Presentation Expanding global revenues

Rob Phillips Executive Chairman & Chief Executive Officer

Uscom Limited, ASX: UCM 13 May 2014

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Uscom - The measure of life

Disclaimer

This Investor Presentation contains confidential information regarding Uscom and its affiliates. The information contained in this Investor Presentation is believed to be reliable. No assurance is given as to the accuracy or completeness of such information. This Investor Presentation does not purport to contain all the information that may be required or desired to evaluate the Company or an investment and any recipient hereof should conduct its own independent analysis of the Company and the data contained or referred to herein and an investment. In determining whether or not to proceed with an investment, the recipient must rely on their own examination of the Company.

No person has been authorized to give any information or make any representation concerning the Company not contained in this Investor Presentation and, if given or made, such information or representation must not be relied upon as having been authorized by the Company. Statements in this Investor Presentation are made as of May 2014. The delivery of this Investor Presentation at any time thereafter shall not under any circumstances create an implication that the information contained herein is correct as of any time subsequent to such date or that there has been no change in the business, condition (financial or otherwise), assets, operations, results of operations or prospects of the Company since such date. The Company undertakes no obligation to update any of the information contained in this Investor Presentation, including any projections, estimates or forward looking statements.

Any statement, estimate or projection as to events that may occur in the future (including, but not limited to, projections of revenue, expenses and net income) were not prepared with a view toward public disclosure or complying with any guidelines of the Institute of Certified Public Accountants, any federal or state securities commission or any other guidelines regarding projected financial information. Such statements, projections and estimates are inherently imprecise and unreliable and the assumptions upon which they are based may prove to be incorrect. Achieving such statements, estimates or projections will depend substantially upon, among other things, the Company achieving its overall business objectives and other factors (including general, economic, financial and regulatory factors) over which the Company may have little or no control. There is no guarantee that any of these statements, estimates or projections will be attained. Actual results may vary significantly from the statements, estimates and projections, and such variations may be material and adverse.

Recipients should not construe the contents of this Investor Presentation as legal, tax or investment advice. Recipients should consult their counsel, accountant, tax, business and other advisors as to legal, accounting, tax, business and other matters concerning the Company or any investment therein. This Investor Presentation does not purport to be all-inclusive or to contain all the information that a recipient may require. Recipients are advised of the need to conduct their own thorough investigation of the Company.

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Message

“Uscom is on the move.

Uscom owns two real, practice changing cardiovascular devices selling into massive global medical markets.

Uscom has an immediate focus on growing sales, distribution and revenue.”

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Our Business

  • Uscom manufactures and sells two, proprietary, FDA/CE approved premium cardiovascular monitoring products – USCOM 1A and Uscom BP+ measuring cardiac output and central blood pressure

  • USCOM – Cardiac Output

    • Customers are hospitals, emergency, ICU, anesthesia, paediatrics

    • Global sales - 650 USCOM units installed worldwide ($11m total revenue)

    • Optimising and growing global distribution channels and revenue

  • BP+ - Blood Pressure (suprasystolic oscillometry)

    • Clinical and home use

    • BP+ volume manufacture and distribution

    • Building international distribution and revenues

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Overview of the Placement

Placement

  • Placement to raise approximately A$1.0 million , up to a maximum of A$2.5 million (5.22% to 12.10% of issued capital)

  • • Placement to be undertaken at a Placement Price of $0.24 per new share

  • Placement available to professional and sophisticated investors under the requirements of sections 9 and 708 of the Corporations Act 2001 (Cth).

  • Use of • Uscom intends to use the proceeds raised from the Placement, after costs, for working capital associated with the

  • proceeds ongoing commercialisation of its products the USCOM 1A and the BP+. • The Placement will be undertaken at a Placement Price of $0.24 per share: - 17.2% discount to the last traded price of $0.29 on 12 May 2014

  • Pricing - 13.8% discount to the 10 day VWAP of $0.2785 - 13.9% discount to the 1 month VWAP of $0.2788

  • • Trading Halt & Capital Raising 13 May 2014

  • Announcement of Placement & Trading Resumes 15 May 2014

  • **Timing *** • Settlement, Issue & Allotment of Placement Shares 20 May 2014 * All dates are indicative only and subject to

  • • change at the discretion of the Company Trading commences in Placement Shares 20 May 2014

  • • The Placement Shares may be issued without shareholder approval under the Company’s placement capacity under

  • Approvals ASX Listing Rules 7.1 and 7.1A respectively.

Other

• New shares issued through the Placement will be fully paid ordinary shares, ranking pari passu with existing shares in Uscom Limited

Capital structure

Capital Structure Target $1.0m Max. $2.5m
Current shares on Issue (m) 75,676 75,676
Placement shares (m) 4,167 10,417
TOTAL SHARES POST PLACEMENT (m) 79,843 86,093
Options on Issue (m) 2,125 2,125

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Two leading cardiac monitoring devices

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  • Established clinical needs – Hypertension, Heart failure, Sepsis, ICU, ED, Anaesthesia, Paediatric

  • Clinical validation

  • Regulatory Approval – both products CE Mark, FDA, TGA

  • Revenue generating – attractive gross margins

  • Patent protected

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Ultra-Sound Cardiac Monitor (USCOM 1A)

Non invasive, accurate, compact technology platform solution

Accurate cardiac output

Cardiac stroke volume Systemic vascular resistance Heart rate Left + right heart measurement

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Works with all other hospital equipment

Intuitive touch screen Real time data Platform technology with multiple uses

Non invasive, real time, beat-to-beat haemodynamics

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USCOM 1A – clinically accepted technology Featured in 350+ peer reviewed publications and presentations

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Emergency, Pediatrics, Cardiac transplantation, Electrophysiology, Heart Failure, Emergency transport, Anesthesia, Liver transplantation, ICU, Septic shock, Pre-eclampsia, Pulmonary hypertension, Nurse outreach, Organ procurement, Haemodialysis, Neonates, infants, Children etc……..

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Central BP+

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New Wave Supra-systolic Oscillometry Central Blood Pressure and Pulse Pressure Wave Analysis

FDA, CE Mark, TGA approvals

Home or clinical use

Supra-systolic Central BP+ Reliable and accurate Central and Brachial BP Replaces sub-systolic methods (cuff)

PPW Analysis

Results in 30 seconds No training required Platform technology with multiple uses

Stand alone, non invasive, accurate, compact system

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BP+ - Superior BP measurement

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----- Start of picture text -----

+ Other BP devices
+
+
Heart
Vessels
+
Blood Pressure Plus… demonstrating what others can’t!
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Why ?

Independent published research by University of Cambridge – Benefits of measuring central blood pressure

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Why ?

Independent published research – identifies BP+ most clinically applicable cBP monitor!

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McEniery CM, Cockcroft JR, Roman MJ, Franklin SS, Wilkinson AB. Central blood pressure: current evidence and clinical importance. Euro Heart J 2014;doi10.1093/eurojeartj/eht565

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US$3b Global Market opportunity

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USCOM 1A Market

“the global physiology monitoring market was valued at USD $1.3b in 2012 with an estimated CAGR of 7.6% from 2013 to 2019.”

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BP+ Market

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“the global blood pressure monitoring testing market was valued at USD $1.7b in 2012 and is estimated to reach a market worth USD 3.7b in 2019, at a CAGR of 11.5% from 2013 to 2019.”

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Broad patent portfolio

Core technology protected by granted patents – patents run to 2024 and beyond

USCOM 1A

22 granted patents 5 pending applications

BP+

34 granted patents 4 registered trade marks

2 registered trade marks

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USCOM 1A – Distribution partners

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New 3 year, A$2.35m distribution deal Combined marketing resources Combined Doppler monitoring products

Hemodynamics. Fluid. Innovation.

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BP+ – China Distribution

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New 5 year, A$7m distribution deal

510 Regional Distributors

20,000+ Hospitals Every Region in China

Hemodynamics. Fluid. Innovation.

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Corporate snapshot

ASX ticker UCM Market cap $21.2 million Shares on issue 75.7 million Cash @ 30 Dec 2013 $0.762m Unlisted options 2.25m Sales FY2013 $0.621m Monthly burn FY2013* $0.081m

Multiple near term revenue opportunities

Active strategic distribution and partner licensing discussions for both products and platform technology

Focused on creating shareholder value Controlled cash consumption

Shareholders Shareholders

Rob Phillips
Dr Steve Woodford
23.9%
16.0%
Gary Davey 9.4%
Colin Bell 3.3%
Merrill Lynch 3.8%
OSI Systems 3.2%

Expanding sales and marketing globally

No debt

  • Uscom received $372k R&D tax rebate in March 2014 for the FY2013. As Uscom increasingly focuses on sales and marketing, R&D activities and expenditure will reduce moving forward. Therefore, future R&D tax rebates are not expected to be material amounts and any changes to the R&D rebate scheme are not expected to have a material impact on Uscom.

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Broker Research – 3 April 2014

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Experienced management team

  • Rob Phillips Founder and inventor of the USCOM1A

Executive Chairman &

CEO

  • Recognised leader and innovator in the field of non-invasive cardiovascular monitoring with multiple peer review papers

  • Detailed knowledge of the platform and its applications

  • Nick Schicht Former manager with Ericsson with broad background in General Manager electronics and product development

  • Responsible for the operational management of the company including finance, marketing, administration and product development

  • Steve Haken Critical Care Nursing, MBA Imperial College, London

Global Sales Manager

(UK based)

  • Research and clinical roles in ICU, CCU, ED and OT worldwide

  • 16yrs device sales for GE Medical, Medtronic, Philips, Novartis and others

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Achievements - Building the Foundations

Built USCOM 1A commercial device ✓ ✓ Regulatory approval in key markets Validated USCOM 1A technology Global sales and brand recognition Widespread KOL support Sold 650 USCOM 1A units ~$11m revenue Broadened products with acquisition of BP+ Standards of care statements for USCOM 1A and BP+ ✓ ✓ Patented USCOM technology

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FY 2014 – Achievements past 9 months

  • Acquisition and integration of BP+

  • Preparation for BP+ manufacture

  • Product improvements

  • Regulatory transfers and approvals

  • Appointed global sales manager

  • New Distribution – 10 new distributors $12m+ revenue

  • $7m - 5yr (Pioneer China) ~$1.3m pa – requires CFDA

  • $2.35m - 3yr (Deltex) ~$780k pa

  • $2.7m - 3yr (SMT) ~$900k pa

  • New distribution – 10 further partners in discussion

• Ongoing revenue growth

  • Q2 2014 – Year on year receipts up 230%

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Targeted Milestones – Building Value

Strategic distribution partnerships – 2013 / 2014 Volume manufacturing - 2014 Capital requirements to support manufacturing - 2014 ✓ ✓ New sales and distribution ~ 10 parties in discussion New products/partnerships – 2015 Profitability – FY2015

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Risk factors

  • Global medical markets unpredictable

  • Product development /regulatory approvals slower and more costly than expected

  • Distribution slow to achieve revenue goals

  • Competitive threats

  • Patent breaches

  • Currently not profitable

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Summary and Outlook

  • Premium cardiovascular device company poised for global growth

  • with revenue

  • Two platform technologies and un-recognised value

  • Strong margin , low capex business model

  • Experienced business team with a global focus

  • Active distribution, strategic and commercial partnership discussions

  • Rapidly growing distribution, sales and revenues

  • Strengthening balance sheet – no debt

  • Demonstrable milestones / value inflection points

  • Targeting profitability in FY2015

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Strategy

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Distribution. Sales. Revenue.

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APPENDICES

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Historical share performance

UCM Share Price

UCM - Year on year % share price growth

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----- Start of picture text -----

30 28 100
87
90
25
80
70
20 57
60
15
15 50 43
10.5 40
10
6.7 30
20
5
10
0 0
Jan-12 2012 vwap 2013 vwap 2014 2012 2013 2014
%
$x100
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Solid year on year performance 3yr av. investment returns >62% pa Tightly held stock

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  • Q3 FY2014

USCOM1A Competitive Advantages

Method Manufacturer Technology Rel+Re
p
Non-
invasive
Simple Cost Portable SV beat
to beat
USCOM 1A Uscom Doppler
BioZ Sonosite BioImpedance
NiCOM Cheetah BioReactance
Nexfin Bmeye APP
CardioQ Deltex Doppler
LiDCO LiDCO LiCl dilutio +APP
LiDCOrapid LiDCO APP
PiCCO
(mod Tx + PP)
Pulsion APP
FloTrac Edwards APP
PAC (Tx) Many Thermodilution

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Competitive Advantages cBP

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Uscom BP+ TensioMed BPLab IEM Centron AtCor
Australia Hungary Russia Germany UK Australia
USD 3,950 USD 6,000 USD 7,000 USD 7,000 USD 6,300 USD 14,000
40 seconds 2 min 2 min 2 min 1 min 1 min
Stand-alone ABP, needs
computer
ABP, needs
computer
ABP, needs
computer
Stand-alone Needs
computer
CE, FDA, TGA CE CE CE, FDA CE CE, FDA
Aortic + brachial
waveform
Central
systolic BP
Rough
waveform
Rough
waveform
Rough
waveform
Rough
waveform
Physical model Statistical
regression
Transfer
function
Transfer
function
Transfer
function
Transfer
function

Testimonials

“This machine is saving lives, there are no two ways about it.” Professor Brendan Smith, Anesthetist, Intensivist and Emergency Physician, N.S.W. Dept of Health, Australia

“USCOM has changed the way I look at the cardiovascular status of my patients. It’s part of the initial shock evaluation and monitored regularly thereafter…. USCOM has now been established as the standard of care.”

Dr Akash Deep, Director of Paediatric ICU, King's College Hospital, London

“The USCOM device is a simple method of accurately and noninvasively measuring central circulation, a goal of cardiology for many years. The device has the potential to change the way we approach management of sepsis, heart failure and hypertension.” Professor Malcolm West, Cardiologist, Mayne Professor of Medicine at The University of Queensland School of Medicine, Brisbane, Australia and Uscom Medical Advisory Board Member.

“I have used USCOM for over 5 years now on our very sick children, and use it to guide management. We are now beginning multi-centre, global research which will define the way USCOM is used in Paediatric Departments across the world.” Dr Joe Brierley, Consultant Intensivist, Great Ormond Street Hospital for Sick Children, London, UK.

“The USCOM device is really good; I use it in all my anaesthetics. I think there should be one on every ICU bed and on every anaesthetic patient.”

Dr Steve Woodford, Consultant Anaesthetist, circulatory researcher at Australian School of Advanced Medicine, and Uscom Investor,

  • “To parents and doctors this machine, USCOM, is priceless. This machine is thought to have saved baby Abbie’s life.

BBC Documentary “New machine helps save baby’s life”, 2010, Nottingham Children’s Hospital

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New Science - USCOM Saving Lives National ICU Study – Sepsis and septic shock mortality 6yr Australian Practice Audit ANZICS CORE Adult database

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30
Bathurst USCOM
25
Australia
20 Australian Rural
15
10 BUSH protocol introduced
5
0
2006 2007 2008 2009 2010 2011 2012
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Smith BE, Phillips RA, Madigan V, West MJ. Decreased Mortality, Morbidity and Emergency Transport in Septic Shock; A New Protocol Based on Advanced Noinvasive Haemodynamics (USCOM) and Early Antibiotics. Crit Care Med 2012; 40(12):1023. doi: 10.1097/01.ccm.0000424114.76434.7a

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New Science - USCOM Reducing Costs

National ICU Study – 6yr Australian Practice Audit ANZICS CORE Adult database

Mean Cost per Admission 2007-2012

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$48,000
$50,000
$41,645
$45,000
$40,000
$35,000
$26,273
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Australian Australian Rural BUSH
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Mean cost per hospitalisation for sepsis and septic shock patients between 2007-2012 assuming $1233 per ward day and $4427 per ICU day.

Smith BE, Phillips RA, Madigan V, West MJ. Decreased Mortality, Morbidity and Emergency Transport in Septic Shock; A New Protocol Based on Advanced Noinvasive Haemodynamics (USCOM) and Early Antibiotics. Crit Care Med 2012; 40(12):1023. doi: 10.1097/01.ccm.0000424114.76434.7a

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