Letter to shareholders SPP rules and sample application
Released
Released
Announcement PDF
10 November 2015
Dear Shareholder
SHARE PURCHASE PLAN
On behalf of the board of Invion Limited ACN 094 730 417 (ASX: IVX) (Invion or Company), we are
pleased to offer you the opportunity to purchase up to $15,000 in additional shares in Invion under this
share purchase plan (SPP).
The SPP will be available to shareholders who are on the Company register at 7.00pm (Sydney time) on
9 November 2015 (Record Date), and having a registered address in Australia or New Zealand
(Eligible Shareholders).
The SPP gives Eligible Shareholders the opportunity to purchase additional shares in Invion at the price
per share which is equal to a 10% discount to the five day volume weighted average price (VWAP) of
Company shares traded on the ASX up to and including the day before the Allotment Date.
There are no transaction costs or brokerage costs for participating shareholders.
Included with this letter is the following material which aims to address any questions you may have
about the SPP:
(a)
an investment overview, which includes details on pricing, the timetable, intended use of funds
and key risks of an investment in the Company;
(b)
SPP terms; and
(c)
an application form.
Funds raised through the SPP will be used for the Company’s general working capital and applied to
costs associated with ongoing analysis of data from the completed phase 2 clinical trial of INV102
(nadolol) in smoking cessation, preparation for an End of Phase 2 meeting with the US FDA, ongoing
business development and partnering discussions for the Company’s three drug assets, and
maintenance of Invion’s intellectual property portfolio.
Following the successful completion of major milestones across four drug development programs during
2015 to date, the Board has accelerated a strategic review of the business and its opportunities, and
the coming months are focussed on securing a strategic investment and/or the sale of the Company
and/or its assets. This is an opportunity for Eligible Shareholders to take advantage of prevailing market
conditions as the Company enters its next stage.
A number of directors who are eligible shareholders have indicated their intention to participate in the
SPP to the maximum subscription value.
The SPP will close on 30 November 2015 at 5.00pm (Sydney time). If you wish to participate in the SPP
your application must be received by the Closing Date. Invion reserves its right to close the SPP early.
Participation in the SPP is entirely voluntary. Offers under the SPP are non-renounceable, meaning that
you are not permitted to transfer your rights to subscribe for Shares under the SPP.
Invion Limited ABN 76 094 730 417
GPO Box 1557, Brisbane, QLD 4073 P +61 7 3295 0500 F +61 7 3295 0599 www.inviongroup.com
If you have any questions about the SPP, please contact the offer information line on 1300 131 543
(within Australia) & +61 1300 131 543 (outside Australia) between 8.30am and 5.30pm (Brisbane time),
Monday to Friday.
Further information about Invion is available at www.inviongroup.com, which should be considered in
conjunction with the Company’s continuous disclosure to ASX.
The Board encourages you to consider this opportunity and thanks you for your continued support.
Yours faithfully
Dr Greg Collier
Managing Director and Chief Executive Officer
Invion investment overview
Offer details
Issue Price
The price per share which is equal to a 10% discount to the five day
VWAP of Company shares traded on the ASX up to and including the
day before the Allotment Date.
Application Amount
Minimum of $500 (Minimum Application Amount) with staged
increments of $500 up to a maximum of $15,000
Record Date
7.00pm (Sydney time) on 9 November 2015
Closing Date
5.00pm (Sydney time) on 30 November 2015
Allotment Date
3 December 2015
Quotation Date
4 December 2015
Intended use of funds
The proceeds raised from this SPP will be used for the Company’s general working capital which is to be
applied (at the discretion of the board) for costs associated with:
(a)
ongoing analysis of data from the completed phase 2 clinical trial of INV102 (nadolol) in
smoking cessation;
(b)
preparation for an End of Phase 2 meeting with the US FDA;
(c)
ongoing business development and partnering discussions for the company’s three drug assets;
and,
(d)
maintenance of Invion’s intellectual property portfolio.
Invion: company and pipeline status
Invion is a life sciences company focussed on the development of treatments for major opportunities in
respiratory and autoimmune disease. Invion has three drug assets in development across four
development programs:
INV102 (nadolol) is a beta adrenergic biased ligand targeted to reverse mucous metaplasia in
the airway epithelium treat chronic inflammatory airway diseases. In Q4 2015, Invion reported
that data from a 155 patient phase 2 study of oral INV102 in smoking cessation demonstrated
good safety and that treated patients were more likely to stop smoking completely or
dramatically reduce the number of cigarettes smoked. Feasibility for an inhaled version of the
drug to potentially treat COPD and cystic fibrosis is well-progressed with 3M Drug Delivery
Systems, and toxicological studies have commenced. In addition, a phase 2 study of oral
INV102 in mild asthma patients funded by the US NIH is fully recruited and will complete dosing
in 1H 2016.
INV104 (zafirlukast) is a leukotriene receptor antagonist (LTRA) that reduces inflammation,
constriction of the airways, and the build-up of mucus in the lungs. An FDA-approved oral
therapy, Invion is, through a joint development and licensing agreement with Hovione Scientia
Limited, developing a proprietary dry powder formulation of the drug for the development of
INV104 (zafirlukast) as a potential inhaled therapy for asthma.
INV103 (ala-Cpn10) is a modified, naturally occurring human protein which has been proposed
as a founding member of the Resolution Associated Molecular Pattern (RAMPs) family
hypothesised to maintain and restore immune homeostasis. Invion reported final data from its
phase 2 clinical trial in lupus patients in Q3 2015. 30mg and 100mg iv twice weekly showed
reduced response to stimulation by LPS after 1 month of dosing. These data, which reflect
relevant activity at the target cell type in patients with a target (autoimmune) disease, has
formed the foundation of partnering discussions for this program.
With three drug assets in three phase 2 clinical trials across four development programs, the Company
has achieved the following milestones in 2015:
Blind-broken interim data from phase 2 smoking cessation trial of INV102 (nadolol)
Pre-IND status for inhaled INV102 (nadolol) as a potential therapy for asthma, COPD & cystic
fibrosis
Manufacture of toxicology and clinical supplies and commencement of toxicology studies for
inhaled INV102 (nadolol)
Completion of phase 2 clinical trial of INV103 (ala-Cpn10) in lupus patients
Data from phase 2 clinical trial of INV013 (ala-Cpn10) in lupus patients
Selection of formulation and device for inhaled INV104 (zafirlukast)
Commencement of manufacture of toxicology and clinical supplies for INV104 (zafirlukast)
Completion of dosing in phase 2 smoking cessation trial of INV102 (nadolol)
Positive safety and efficacy data from phase 2 oral INV102 (nadolol) study in patients
undergoing smoking cessation
Completion of enrolment of NIH-funded phase 2 study of INV102 (nadolol) in asthma patients
Risks
Before making an investment decision, you should read the SPP terms set out below. Invion considers
that the major risks of an investment in Invion include:
(a)
Funding risk - There is no assurance that the Company will be able to raise further capital if and
when it is required, or that the terms associated with raising that capital will be satisfactory to
the Company. If Invion is unsuccessful in obtaining funds when they are required, Invion may
need to delay or eliminate aspects of its business, have to license or sell its technologies on
unfavourable terms, or scale down or cease operations. If Invion raises funds by issuing shares
or borrowing, the terms may not be favourable and may dilute the ownership of its
shareholders;
(b)
Clinical trial risk - Invion's ability to obtain regulatory approval for its products and profitably
commercialise its products is dependent upon its ability to conduct successful clinical trials
which are inherently risky, depend upon the availability of patients and regulatory approvals,
and have no guarantee of returning efficacious results or proving practical or cost effective;
and
(c)
Manufacturing and distribution capability risk - Invion's ultimate success is dependent upon its
ability, or that of its commercial partners, to scale up and maintain production within the
estimated time frame, and in accordance with regulatory standards.
Past performance is not necessarily a guide to future performance of the Company.
SPP terms
How do I accept
To participate, you should either:
(a)
(b)
return your application form, together
with a cheque; or
pay the Application Amount via BPAY,
so that payment is received by 5.00pm (Sydney
time) on 30 November 2015.
BPAY instructions are set out on the application
form. If you use BPAY, you do not need to
return your application form. Please make sure
you use the specific biller code and unique
reference number on your personalised
application form. Your financial institution may
implement earlier cut-off times for electronic
payment. You should take this into
consideration when making payment.
If paying by cheque, use the reply paid
envelope or deliver it to the address on the
application form. Applications received after
the Closing Date will not be accepted.
Funds received for applications by cheque or
BPAY will be regarded as applications for the
maximum number of shares that those funds
will pay for in full.
Importantly, while participation in the plan is
optional, once applications are submitted, they
cannot be withdrawn.
The Company’s market price may vary at any
time during the offer period and the Company’s
shares may trade at a price that is lower than
the Issue Price.
By accepting the SPP offer, you accept the risk
that the market price of the Company’s shares
may fall below the Issue Price between the
date of this offer and the Allotment Date, in
which case you may have been able to buy
the shares at a lower price than the Issue Price.
By making an application, you represent to the
Company the matters set out under the
heading ‘Your representations’ in these terms
and in the application form.
How many shares
Eligible Shareholders receive the number of
shares equal to the Application Amount
(subject to any scale-back) divided by the
Issue Price. Fractions will be rounded down,
and the difference (being any amount less
than the Issue Price) may be retained by the
Company.
The Issue Price does not exceed the limit
prescribed by the ASX Listing Rules and ASIC
Class Order 09/425.
Shares issued under the SPP may be sold or
transferred on ASX at any time after the
Quotation Date.
Eligibility to participate
Participation in the SPP is optional. The offer is
open to all shareholders with a registered
address in Australia or New Zealand as at the
Record Date.
Multiple holdings
If you are the only registered holder of
Company shares, but you receive more than
one offer under the SPP (for example, due to
multiple registered holdings), you may only
apply in total for a maximum of $15,000 worth
of shares.
Joint holders
If you are a joint holder of Company shares,
that holding is considered to be a single
registered holding for the purpose of the SPP.
You are entitled to participate in the SPP for
that single holding only. If you are a joint
holder and you receive more than one offer
under the SPP, you may only apply in total for a
maximum of $15,000 worth of shares.
Trustee or nominee
If you are noted on the Company’s share
register as a trustee or nominee for a named
beneficiary, you may only apply for one
maximum parcel of shares for each named
beneficiary. If the Company’s share registry
does not record a named beneficiary for your
trustee or nominee holding, the rules for
multiple single holdings apply.
Custodians
If you are a custodian within the definition of
‘custodian’ in ASIC Class Order 09/425 (as
varied) and hold Company shares for one or
more persons (each a Participating
Beneficiary), or for another custodian of
Company shares, you may apply for up to a
maximum of $15,000 worth of shares for each
Participating Beneficiary, subject to providing
the Company a ‘custodian certificate’ in
addition to the application form, which certifies
matters required by ASIC Class Order 09/425 (as
varied).
The Company’s rights
The Company may reject any application for
Shares under the SPP if:
(a)
Please contact the share registry to obtain the
form of the custodian certificate.
it considers that the application does
not comply with these terms;
(b)
you are not an Eligible Shareholder;
Directors
(c)
a cheque is returned unpaid;
Directors of the Company who are Eligible
Shareholders may participate in the SPP.
(d)
the application form has not been
properly completed; or
Scale-back
(e)
there are grounds for believing that the
applicant is not acting in good faith.
The Company may, in its absolute discretion,
scale-back applications under the SPP.
Factors that the Company may take into
account in determining any scale-back
include:
(a)
compliance with regulatory
requirements;
(b)
the amount applied for by each
shareholder;
(c)
the number of shares held at the
Record Date; and
(d)
if the shareholder remains on the
register at the Closing Date.
The Company may scale-back applications
below the Minimum Application Amount.
Scale-back decisions are made by the board
and are final.
If a scale-back occurs, the difference between
the value of the shares allotted and the
Application Amount paid to the Company
(only where the amount is greater than the
Issue Price) will be refunded by cheque and
mailed to you as soon as practicable following
the Allotment Date. Any scale-back will be
announced on the Allotment Date. No interest
will be paid on any Application Amount paid or
refunded.
The Company may modify, suspend or cancel
the SPP at any time. If the Company does this it
will notify ASX. If the SPP is cancelled the
Application Amount will be refunded without
interest. Neither the Company nor the board
accepts or assumes any liability to shareholders
because of the variation, suspension or
termination of SPP.
The Company may settle, at its discretion in any
manner it deems fit, any anomalies or disputes
in connection with the SPP and that decision is
conclusive and binding on all applicants. The
Company reserves the right to waive strict
compliance with these terms.
Your representations
By completing and returning the
application form or by making a
BPAY payment, you:
(a)
certify to the Company that you are an
Eligible Shareholder;
(b)
authorise the Company (and its officers
and agents) to correct any error in, or
omission from, your application form;
(c)
accept the risks of the delivery of any
refund to you;
(d)
acknowledge that the Company may
at its discretion determine that your
application form is valid, even if the
application form is invalid;
(e)
irrevocably and unconditionally agree
to these terms; and
(f)
acknowledge that the Company is not
liable for any exercise of its discretions
referred to in these terms.
ASX quotation
After shares are issued and allotted under the
SPP, the Company will apply to ASX for
quotation of the Shares on the Official List and
send an allotment notice to each Eligible
Shareholder’s registered address.
No costs
Eligible Shareholders may subscribe without
incurring brokerage costs, commission or other
transaction costs.
Other information
The Offer is non renounceable, which means
that you cannot transfer your right to purchase
shares under the SPP to anyone else. Shares
issued under the SPP will rank equally in all
respects with existing fully paid shares.
This document is not an offer of securities in any
place outside Australia or New Zealand and
does not take into account your individual
investment objectives, financial situation or
particular needs. An investment in the
Company is speculative. Therefore, you should
obtain independent financial and taxation
advice before making an investment decision.
All Registry communications to:
Link Market Services Limited
Locked Bag A14
Sydney South NSW 1235 Australia
Telephone: +61 1300 554 474
ASX Code: IVX
Website: www.linkmarketservices.com.au
Invion Limited
ABN 76 094 730 417
SRN/HIN:
Entitlement Number:
Record Date:
9 November 2015
Offer Opens:
13 November 2015
Offer Closes
5:00pm (Sydney time): 30 November 2015
SHARE PURCHASE PLAN (“SPP”) APPLICATION FORM
How do I apply for Shares under this offer?
• Carefully read the SPP Terms and Conditions accompanying this form.
• Decide on the amount you wish to apply for.
• Pay for the Shares in accordance with the instructions outlined in the Terms and Conditions Booklet and further important instructions on the reverse of this
form.
Option 1: Paying by Bpay®.
Option 2: Paying by Cheque, Bank Draft or Money Order.
• Payments must be in Australian dollars.
PAYMENT OPTIONS
Option 1: Paying by Bpay®
If paying by Bpay®, you do NOT need to complete or return the Acceptance
Slip attached to this Application Form below. Payment must be received by
the Registry by Bpay® by 5:00pm (Sydney time) on 30 November 2015. By
paying by Bpay®, you will be deemed to have completed an Application
Form for the parcel amount the subject of your Application Payment.
If you make a payment by Bpay® and Invion Limited receives an amount which
is not between $500 (Minimum Application Amount) with staged increments
of $500 up to a maximum of $15,000. Invion Limited may round down the
dollar amount of Shares that you are applying for to the next lowest parcel at
their discretion. Your payment must be for a minimum of A$500.
Biller Code: [XXXXXX]
Ref:
Telephone & Internet Banking – Bpay®
Contact your bank or financial institution to make this payment from
your cheque, savings, debit or transaction account.
More info: www.bpay.com.au
Option 2: Paying by Cheque, Bank Draft or Money Order
If paying by cheque, bank draft or money order, complete and return the
Acceptance Slip attached to this Application Form with your Application
Payment.
A. Complete the parcel amount you wish to apply for.
B. Enter your cheque, bank draft or money order details. The amount of
your Application Payment should be equal to the amount applied for in
section A of the Acceptance Slip. Cheques, bank drafts or money orders
must be drawn on an Australian branch of a financial institution in
Australian currency, made payable to “Invion Limited” and crossed “Not
Negotiable”. Please ensure sufficient cleared funds are held in your
account, as your cheque will be banked as soon as it is received. If you
provide a cheque, bank draft or money order for an amount that is not
equal to your application amount Invion Limited may round down the
dollar amount of Shares that you are applying for to the next lowest
parcel at their discretion. Your payment must be for a minimum of
A$500.
C. Enter your contact telephone number at which we may contact you
regarding your application, if necessary.
® Registered to Bpay Pty Ltd ABN 69 079 137 518
THIS IS A PERSONALISED FORM FOR THE SOLE USE OF THE SHAREHOLDER AND HOLDING RECORDED ABOVE.
Please detach and enclose with payment
A
*9999999
I/We wish to purchase a parcel of Shares to the
dollar amount of
A$
,
SRN/HIN:
Entitlement Number:
.
your cheque, bank draft or money order payable to “Invion Limited” and crossed “Not Negotiable”
B
Drawer
Cheque Number
BSB Number
Account Number
Amount of Cheque
A$
C
(
Telephone Number – Business Hours
)
Telephone Number – After Hours
(
)
Contact Name
.00
IMPORTANT INFORMATION
1. This is an important document which requires your immediate attention. If you are in any doubt as to how to deal with this Application Form, please consult
a professional adviser.
2. If you do not wish to purchase additional Shares under this SPP, there is no need to take action.
3. Please ensure you have read and understood the SPP Terms and Conditions and this Important Information, before you make the Application Payment
by Bpay® or you submit your Acceptance Slip with your Application Payment.
4. This SPP is non-renounceable. Applications can only be accepted in the name printed on the Application Form.
5. If you are a custodian, trustee or nominee within the definition of “custodian” in ASIC Class Order [CO 09/425] you must complete and submit an additional
Schedule that contains additional certifications and details that must be provided (“the Schedule”) before your Application will be received. The Schedule
can be obtained by contacting the Invion Limited SPP Offer Information Line. Applications received by custodians that are not accompanied by the
Schedule will be rejected.
6. For applicants that are not required to complete the Schedule, by submitting the Acceptance Slip (with a cheque, bank draft or money order) or making
payment by Bpay®, you certify that the aggregate of the Application Payment paid by you for:
• the parcel of New Shares indicated on this Application Form or Bpay® payment; and
• any other Shares applied for by you, or which you have instructed a Custodian to acquire on your behalf under the SPP or any other similar arrangement
in the 12 months prior to the date of submission of the Acceptance Slip or payment by Bpay® does not exceed A$15,000.
7. Invion Limited reserves the right to make amendments to this Application Form where appropriate.
8. Applicants are not assured of receiving the Shares for which they have applied as Invion Limited may scaleback applications in its discretion.
to Lodge your Acceptance Slip and Application Payment
A reply paid envelope is enclosed for you to return your Acceptance Slip and Application Payment. No postage stamp is required if it is posted in Australia.
Acceptance Slip and the payment for New Shares must be received by the Registry no later than the closing date shown overleaf. If paying by Bpay® you do
not need to complete or return the Application Form. You should check the processing cut off-time for Bpay® transactions with your bank, credit union or
building society to ensure your payment will be received by the Registry by the close of the offer.
Mailing Address
or
Invion Limited
C/- Link Market Services Limited
GPO Box 3560
Sydney NSW 2001
Hand Delivery
Invion Limited
C/- Link Market Services Limited
1A Homebush Bay Drive
Rhodes NSW 2138 (Please do not use this address for mailing purposes)
Make sure you send your Acceptance Slip and Application Payment allowing enough time for mail delivery, so Link Market Services Limited receives them
no later than 5:00pm (Sydney time) on 30 November 2015. Please ensure sufficient cleared funds are held in your account, as your cheque will be banked
as soon as it is received. Invion Limited reserves the right not to process any Acceptance Slips and Application Payments received after the Closing Date.
If you require information on how to complete this Acceptance Slip please contact the Invion Limited SPP Offer Information Line on 1300 131 543
if calling within Australia or +61 1300 131 543 if calling from outside of Australia.
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