Corum : Appendix 4C - quarterly

Corum Group Limited ABN 25 000 091 305 Level 3, 120 Sussex Street, Sydney NSW 2000 www.corumgroup.com.au

Legal/73633702_1

Market Release

30 October 2020

ASX Announcement

Quarterly Activity Report and Appendix 4C

30 September 2020

Principal Activities

Corum Group Limited (ASX:COO) is a technology and software development company. The key business activities relate to Corum Health which develops and distributes business software for the pharmacy industry with emphasis on point-of-sale and pharmaceutical dispensing software, multi-site retail management, support services and computer hardware. Corum eCommerce operates a payment gateway primarily for the real estate and pharmacy sectors.

Key Activities during the September 2020 Quarter

Capital Raise

During the quarter Corum successfully completed a $5.6m capital raise. 134,189,197 new shares were issued, 52% of which were entitlement offer acceptances. The shortfall placement was completed with strong demand from institutional, family office and private investors. The associated costs will be a cash outflow in the December 2020 quarter.

PharmX Investment

PharmX Pty Ltd is the pre-eminent electronic gateway that links pharmacies, pharmaceutical wholesalers and direct suppliers within the pharmacy market. In the prior financial year Corum increased its stake in PharmX to 43%. During the September 2020 quarter, Corum completed its acquisition of the remaining 57% of PharmX, and now owns 100%. The total consideration for this transaction was $7.9m cash. $3.75m was paid during the September 2020 quarter and the remaining $4.15m was paid in October.

This acquisition has also resolved the matter of outstanding distributions that were due from PharmX to Corum. PharmX's results have been consolidated into the group from 1 September 2020 and made a positive contribution to Corum's operating cash flows.

Software Investment

Corum is continuing to invest in its software products, with $707,000 of the investment made during the quarter being capitalised.

Much of this development was focused on continuing to improve our suite of products including the development of Corum Clear Enterprise and upgrading our RPM Head Office and retail offerings.

Integration and functionality improvements have also continued to be developed on Corm Clear Dispense with this product continuing to be sold into the wider marketplace.

BAMM Agreement

The development of Corum Clear Enterprise, our next generation cloud-based Head Office solution, continued during the quarter. As per our 30 June 2020 announcement, the first milestone associated with the Subscription Deed with BAMM Group Administration Pty Ltd ('BAMM'), to develop a cloud-based Head Office solution, has not been met. Consequently, the arrangements between the parties for the further development of the product are being reviewed.

Payments to related parties of the entity and their associates

During the quarter, $457,000 was paid in fees and salaries to Directors, Key Management Personnel and their related entities. This included a final remuneration payment to the previous Managing Director.

- ENDS -

This notice has been authorised for release to the ASX by the Board of the Company.

For further information contact:

Julian Sallabank, Managing Director

Investor email: [e-mail]

About Corum Group

Corum Group Limited [ASX:COO] (Corum) is an Australian company limited by shares that owns businesses in technology and software development.

For more than 30 years Corum has been using its deep industry expertise and extensive relationships to develop Point- Of-Sale, Dispensing and Management software for pharmacy head offices and retail stores and a range of eCommerce and ordering solutions throughout Australia.

Corum is determined to offer the best solutions to its customers through the products, services and processes of each of its businesses.

Corum Group | Corum Health | Corum eCommerce | PharmX

corumgroup.com.au

Sydney | Melbourne | Perth | Brisbane | Adelaide

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity
Corum Group Limited
ABN	Quarter ended ("current quarter")
25 000 091 305	30 September 2020
Consolidated statement of cash flows	Current quarter	Year to date (3
	$A'000	months)
		$A'000

1. Cash flows from operating activities

1.1 Receipts from customers

2,715

2,715

1.2 Payments for

	(a)	research and development	-	-
	(b)	product manufacturing and operating	(536)	(536)
		costs
	(c)	advertising and marketing	(22)	(22)
	(d)	leased assets	-	-
	(e)	staff costs	(1,716)	(1,716)
	(f)	administration and corporate costs	(266)	(266)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	6	6
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	(272)	(272)
1.7	Government grants and tax incentives	1,973	1,973
1.8	Other (provide details if material)	(159)	(159)
1.9	Net cash from / (used in) operating	1,723	1,723
	activities

2. Cash flows from investing activities

2.1 Payments to acquire or for:

(a)	entities	-	-
(b)	businesses	-	-
(c)	property, plant and equipment	(10)	(10)
(d)	investments	(3,750)	(3,750)
(e)	intellectual property	(707)	(707)
(f)	other non-current assets	-	-

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date (3
	$A'000	months)
		$A'000

2.2 Proceeds from disposal of:

	(a)	entities	-	-
	(b)	businesses	-	-
	(c)	property, plant and equipment	-	-
	(d)	investments	-	-
	(e)	intellectual property	-	-
	(f)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (cash on acquisition of subsidiary)	5,975	5,975
2.6	Net cash from / (used in) investing	1,508	1,508
	activities

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	5,636	5,636
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	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	(896)	(896)
3.9	Other (provide details if material)	(114)	(114)
3.10	Net cash from / (used in) financing	4,626	4,626
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

	period	2,323	2,323
4.2	Net cash from / (used in) operating	1,723	1,723
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	1,508	1,508
	(item 2.6 above)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.