Announcement PDF ASX / APPENDIX 4C 29 October 2018 The Manager Company Announcements Office ASX Limited, 20 Bridge St SYDNEY NSW 2000 Dear Sir APPENDIX 4C Invion Limited (ASX:IVX) is pleased to lodge its Appendix 4C for the quarter ending 30 September 2018. The Company held cash reserves of $1.647 million at the end of September, with net operating cash outflows during the quarter of $1.245 million, consistent with forecasts. During the quarter the Company announced that initial characterisation of photodynamic therapy, PhotosoftTM in ovarian cancer had been completed under its Research & Development Alliance Agreement with the Hudson Institute, with findings showing that PhotosoftTM caused efficient and highly effective cancer cell destruction in vitro, with 100% cell death achieved in a matter of minutes following light activation. Also during the quarter, the Company announced the grant in Australia of the patent for chlorin e4 sodium (PhotosoftTM technology), and the completion of the technical transfer of the PhotosoftTM technology to a recognised Australian GLP production facility. Demerger of Respiratory Assets In September, the Company announced its plan to demerge its respiratory assets (nadolol and Zafirlukast) into stand-alone company, Chronic Airway Therapeutics Limited (CAT). CAT has been established to focus on development of respiratory assets in China, expediting advancement into Phase 3 clinical trials. Eligible Invion shareholders will, on completion of the demerger, receive one share in Chronic Airway Therapeutics Limited for each Invion share they hold. Shareholders will be voting on resolutions relating to the demerger at the Company’s AGM to be held on Tuesday 13 November, in Melbourne. Funding In accordance with strategy, activity in coming quarters will primarily be directed to the clinical development of Photosoft™, the fully burdened costs of which will be funded non-dilutively on a quarterly basis via Invion’s R&D services agreement with The Cho Group, a Hong Kong based group that funds and has successfully commercialised a number of unique and advanced technologies. An Appendix 4C accompanies this announcement. For and on behalf of the Board of Invion Limited MELANIE FARRIS Company Secretary Invion Limited ABN 76 094 730 417 722 High Street, East Kew, VIC 3102 Australia P: +61 3 9081 6005 W: www.inviongroup.com Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/3/00. Amended 30/9/01, 24/10/05, 17/12/10, 1/09/16 Name of entity INVION LTD ABN Quarter ended (“current quarter”) 76 094 730 417 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for 30-September-2018 Current quarter Year to date $A’000 (12 months) $A’000 - - (419) (419) (b) product manufacturing and operating costs - - (c) advertising and marketing - - (d) leased assets - - (e) staff costs (171) (171) (f) administration and corporate costs (656) (656) - - (a) research and development 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - - 1.9 Net cash from/(used in ) operating activities (1,245) (1,245) 2. Cash flows from investing activities 2.1 Payments to acquire: 1 1 (a) property, plant and equipment - - (b) businesses (see item 10) - - (c) investments - - + See chapter 19 for defined terms 1 September 2016 Appendix 4 C Page 1 Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows Current quarter Year to date (12 months) $A’000 2.2 $A’000 (d) intellectual property - - (e) other non-current assets - - Proceeds from disposal of: - (a) property, plant and equipment - - (b) businesses (see item 10) - - (c) investments - - (d) intellectual property - - (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other (provide details if material) - - 2.6 Net cash from/(used in ) investing activities - 3. Cash flows from financing activities 3.1 Proceeds from issues of shares - - 3.2 Proceeds from issue of convertible notes - - 3.3 Proceeds from exercise of share options - - 3.4 Transaction costs related to issues of shares, convertible notes or options - - 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - - 3.10 Net cash from/(used in ) financing activities - - 4. Net increase / (decrease) equivalents for the period 4.1 Cash and cash equivalents at beginning of quarter/year to date 2,891 2,891 4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,245) (1,245) 4.3 Net cash from / (used in) investing activities (item 2.6 above) - - 4.4 Net cash from / (used in) financing activities (item 3.10 above) - - + See chapter 19 for defined terms 1 September 2016 in cash - and cash Appendix 4 C Page 2 Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows Current quarter Year to date (12 months) $A’000 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts $A’000 1 1 1,647 1,647 Current quarter $A'000 Previous quarter $A'000 5.1 Bank Balances 1,647 2,891 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 1,647 2,891 6. Payments to directors of the entity and their associates 6.1 Aggregate amount of payments to the parties included in item 1.2 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 Current quarter $A'000 (168) - Payments to directors includes directors fees and executive directors salaries. Current quarter $A'000 7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to the parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 + See chapter 19 for defined terms 1 September 2016 Appendix 4 C Page 3 Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Total facility amount at quarter end $A'000 Total drawn at quarter end $A'000 8. Financing facilities available 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. 9. Estimated cash outflows for next quarter 9.1 Research and development 9.2 Product manufacturing and operating costs - 9.3 Advertising and marketing - 9.4 Leased assets - 9.5 Staff costs 354 9.6 Administration and corporate costs 175 9.7 Other (provide details if material) - 9.8 Total estimated cash outflows 1,189 10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above) 10.1 Name of entity 10.2 Place of incorporation or registration 10.3 Consideration for acquisition or disposal 10.4 Total net assets 10.5 Nature of business Add notes as necessary for an understanding of the position + See chapter 19 for defined terms 1 September 2016 $A'000 660 Acquisitions Disposals N/A N/A Appendix 4 C Page 4 Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B 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. Sign here: Original signed (Company Secretary) Date: 29-October-2018 Print name: Melanie Farris Notes 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. 2 If this quarterly 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 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. 3 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. + See chapter 19 for defined terms 1 September 2016 Appendix 4 C Page 5