Announcement PDF ® IMAGION BIOSYSTEMS LIMITED (ASX: IBX) 21 January 2021 Quarterly Activity Report – 31 December 2020 Q4 Highlights: • Raised $5.6 million (net of costs) in oversubscribed placement, with funds to be used on product development and manufacturing scale-up • MagSenseTM HER2 breast cancer Phase I study open for enrolment, with Monash Health established as first clinical site MELBOURNE - Imagion Biosystems (ASX: IBX), a company dedicated to improving healthcare through the early detection of cancer, today released its Appendix 4C Quarterly Cashflow report and update on Company activities for the quarter ending 31 December 2020 (Q4 FY2020). Executive Chairman and CEO Bob Proulx said, “2020 has been a breakout year for Imagion. After much diligence and hard work, we are delighted to have finished the year with our first in-human study established and open for enrolment. We are excited for what lies ahead in 2021, particularly as the MagSenseTM HER2 breast cancer Phase I study progresses and we explore further development areas including manufacturing scale-up and a larger pivotal study.” Summary of activities in Q4 In November 2020, Imagion raised $5.6 million (net of costs) in an oversubscribed placement. The raise was strongly supported by new and existing sophisticated and institutional shareholders. Funds received will enable Imagion to accelerate development plans in parallel with the study, including scaling up manufacturing, product development for additional indicators, and a larger US pivotal study. During the quarter, Imagion announced its MagSenseTM HER2 breast cancer Phase I study was open for enrolment, with Monash Health being announced as the first clinical site for the study. Imagion appointed Mr Geoff Hollis as Chief Financial Officer during the quarter, who took up his position on 1 December 2020. The appointment strengthens the Company’s management and leadership team for the next phase of growth. Summary of Q4 Cash Flows Imagion’s cash balance increased to $13.2 million during the quarter. The oversubscribed placement raised $5.6 million (net of costs) with an additional $1.0 million received upon the exercise of options. The Company reported an operating cash outflow of $1.5 million in the quarter, a slight improvement against the prior quarter’s operating cash outflow of $1.8 million. As Imagion’s Phase I clinical study progresses and the Company advances its development pipeline, the Company is planning for R&D expenditures and staff costs to increase in the coming quarters. Imagion Biosystems Limited ACN 616 305 027 Level 25, 525 Collins Street, Melbourne VIC 3000 www.imagionbiosystems.com ® During the quarter, $111K was paid to related parties and their associates. These payments related to director fees and executive director salaries. -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. Authorisation & Additional Information This Announcement was authorised by the Board of Directors 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 December 2020 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 65 223 (790) (3,111) - - (63) (207) - - (e) staff costs (479) (2,455) (f) (256) (1,330) 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 1.5 Interest and other costs of finance paid (9) (36) 1.6 Income taxes paid - - 1.7 Government grants and tax incentives 16 2,235 1.8 Other (provide details if material) 25 97 1.9 Net cash from / (used in) operating activities (1,491) (4,583) 2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities - - (b) businesses - - (c) property, plant and equipment (4) (8) (d) investments - - (e) intellectual property - - (f) - - other non-current assets ASX Listing Rules Appendix 4C (17/07/20) + 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 (12 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 (4) (8) 3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 6,000 13,262 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options 1,038 2,606 3.4 Transaction costs related to issues of equity securities or convertible debt securities (437) (1,100) 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings (144) (481) 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - 234 3.10 Net cash from / (used in) financing activities 6,457 14,521 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 8,346 3,402 4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,491) (4,583) 4.3 Net cash from / (used in) investing activities (item 2.6 above) (4) (8) ASX Listing Rules Appendix 4C (17/07/20) + 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 (12 months) $A’000 4.4 Net cash from / (used in) financing activities (item 3.10 above) 6,457 14,521 4.5 Effect of movement in exchange rates on cash held (107) (131) 4.6 Cash and cash equivalents at end of period 13,201 13,201 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 5,201 8,346 5.2 Call deposits 8,000 - 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) 13,201 8,346 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 1 111 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 (17/07/20) + 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) (1,491) 8.2 Cash and cash equivalents at quarter end (item 4.6) 13,201 8.3 Unused finance facilities available at quarter end (item 7.5) 8.4 Total available funding (item 8.2 + item 8.3) 13,201 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 8.86 - - Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 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: N/A 8.6.2 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: N/A 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: N/A Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. ASX Listing Rules Appendix 4C (17/07/20) + 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. 21 January 2021 Date: ................................................................................... 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 (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 5