Announcement PDF ® IMAGION BIOSYSTEMS LIMITED (ASX: IBX) 29 April 2020 Quarterly Cashflow Report – Period ending 31 March 2020 MELBOURNE – Imagion Biosystems (ASX:IBX), a company dedicated to improving healthcare through the early detection of cancer, has today released its Appendix 4C Quarterly Cashflow report and update on company activities for the quarter ending 31 March 2020 (Q1 FY20). Imagion’s cash balance as of 31 March 2020 was $1.7M. Subsequently on 8 April, 2020 the Company announced the receipt of approximately $2.2M non-dilutive capital in R&D tax incentives, and on 28 April 2020 Imagion successfully completed a renounceable rights issue raising approximately $2.5M. The Company expects that the aforementioned cash infusions will fund its operations for the remainder of 2020. During the quarter, the company remained focused on advancing its first-in-human study of its novel MagSense™ technology, for the early detection and staging of HER2 metastatic breast cancer. The company purchased the necessary equipment and supplies and has completed the vendor qualifications and audits to achieve the necessary GMP (Good Manufacturing Practice). As a result, Imagion has now commenced manufacturing of its nanoparticles. Imagion will continue to work on other key areas of the business while manufacturing proceeds. The Company expects a moderate increase in net cash used in operating activities as it continues with manufacturing and preparing for a first-in-human study. Costs related to the contract manufacture of its nanoparticle formulation will comprise the majority of the increased expenditures. The COVID-19 pandemic is yet to have significant impact on normal operations, however the Board recognises the uncertainty the pandemic has created in terms of general business risks. To assist with conservation of cash, directors of the Company have agreed to waive their director’s fee in the current quarter (Q2 2020). “We’ve made a good start to 2020, having commenced manufacturing of our nanoparticles and shoring up our balance sheet with the tax refund and oversubscribed capital raise” said Bob Proulx, Executive Chair. “Our current cash position puts us on strong footing to continue working towards our near-term milestones and further safeguards us from potential COVID-19 risks that may arise.” -ENDS About Imagion Biosystems Imagion Biosystems is developing a new non-radioactive and safe diagnostic imaging technology. Combining biotechnology and nanotechnology the Company aims to detect cancer and other diseases earlier and with higher specificity than is currently possible. Imagion Biosystems listed on the Australian Securities Exchange (ASX) in June 2017. This Announcement has been approved by the Disclosure Committee of Imagion Biosystems Limited For further information please visit www.imagionbiosystems.com U.S. Media Contact: Matthew Wygant matthew@biotechwriting.com +1-408-905-7630 Australian Media & Investor Relations: Kyahn Williamson, WE Communications We-AUImagionBiosystems@we-worldwide.com +61-3-9866-4722 Imagion Biosystems Limited ACN 616 305 027 Level 25, 525 Collins Street, Melbourne VIC 3000 www.imagionbiosystems.com Rule 4.7B Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity Imagion Biosystems Limited ABN Quarter ended (“current quarter”) 42 616 305 027 31 March 2020 Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 50 50 (492) (492) - - (47) (47) - - (e) staff costs (842) (842) (f) (362) (362) 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets administration and corporate costs 1.3 Dividends received (see note 3) - - 1.4 Interest received 1 1 1.5 Interest and other costs of finance paid (1) (1) 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (GST Refund) 23 23 1.9 Net cash from / (used in) operating activities (1,670) (1,670) 2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities - - (b) businesses - - (c) property, plant and equipment - - (d) investments - - (e) intellectual property - - (f) - - other non-current assets ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows 2.2 Current quarter $A’000 Year to date (3 months) $A’000 (a) entities - - (b) businesses - - (c) property, plant and equipment - - (d) investments - - (e) intellectual property - - (f) - - Proceeds from disposal of: 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 equity securities (excluding convertible debt securities) - - 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - - 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings (37) (37) 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 (37) (37) 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 3,402 3,402 (1,670) (1,670) - - 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 2 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows Current quarter $A’000 Year to date (3 months) $A’000 4.4 Net cash from / (used in) financing activities (item 3.10 above) (37) (37) 4.5 Effect of movement in exchange rates on cash held 3 3 4.6 Cash and cash equivalents at end of period 1,698 1,698 5. Reconciliation of cash and cash equivalents Current quarter $A’000 Previous quarter $A’000 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 1,698 3,402 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) 1,698 3,402 6. Payments to related parties of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 208 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 3 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (please specify) - - 7.4 Total financing facilities - - 7.5 Unused financing facilities available at quarter end 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (Item 1.9) 1,670 8.2 Cash and cash equivalents at quarter end (Item 4.6) 1,698 8.3 Unused finance facilities available at quarter end (Item 7.5) 8.4 Total available funding (Item 8.2 + Item 8.3) 1,698 8.5 Estimated quarters of funding available (Item 8.4 divided by Item 8.1) 1.016 8.6 If Item 8.5 is less than 2 quarters, please provide answers to the following questions: 1. - - Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: No. The Company expects a moderate increase in net cash used in operating activities as it continues to prepare for a first-in-human study. Costs related to the contract manufacture of its nanoparticle formulation will comprise the majority of the increased expenditures. 2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: Yes. On 8 April, 2020 the Company announced the receipt of approximately $2.2 million in R&D tax incentives. On 28 April, 2020 the Company successfully completed a renounceable rights issue raising approximately $2.5 million. 3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: Yes. The Company expects that the aforementioned cash infusions will fund its operations for the remainder of 2020. ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 4 Appendix 4C Quarterly cash flow 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. Date: 29/04/2020 ................................................................................... By the Board of Imagion Biosystems Limited Authorised by: ................................................................................... (Name of body or officer authorising release – see note 4) Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow 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 cash flow 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. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. ASX Listing Rules Appendix 4C (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms. Page 5