INVION LIMITED ACTIVITY REPORT AND CASH FLOW REPORT FOR THE QUARTER ENDED 31 MARCH 2022
MELBOURNE (AUSTRALIA) 20 April 2022: Invion Limited (ASX: IVX) ("Invion" or the "Company") wishes to provide the following update and Appendix 4C for the quarter ending 31 March 2022.
Summary of cash position and expenditure during the quarter
The Company held cash reserves at the end of the quarter of $8.1 million, compared with a cash balance of $13.6 million in the previous quarter, following the payment of $5 million to RMW Cho Group Limited (RMW) for a new Exclusive Licence and Distribution Agreement that dramatically expands Invion's addressable markets (see below for more details).
The existing R&D services agreement with RMW still stands where RMW will fully fund all cancer-related research and development of Photosoft™ around the world, apart from the Asia Pacific countries where Invion has exclusive rights to.
Invion recorded a cash outflow of $479,000 from Operating Activities in the March quarter and the primary areas of expenditure were research and development (R&D) at $619,000 and administration and corporate costs at $446,000.
As detailed in Item 6.1 of the accompanying Appendix 4C, the Company discloses that the aggregate payments to related parties and their associates during the quarter totalled $155,000. The payment relates to outstanding CEO salary and the superannuation component of the directors' fees.
R&D activities during the quarter
Invion's key focus during the March quarter continued to be on the development of the Photosoft™ technology for the treatment of multiple cancer types. The Company is working with its research partner, Hudson Institute of Medical Research, to progress several additional Proof-of-Concept (PoC) studies on Invion's latest Active Pharmaceutical Ingredient (API), INV043.
Work is advancing on studies comparing INV043 with immunotherapies, including checkpoint inhibitors, as well as further characterisation of the body's immune response following treatment using INV043.
During the quarter, Invion has also been working on new patent filings. These applications pave the way for new global patents to be filed to further protect the unique Photosoft™ technology.
Additionally, Invion is commencing work on using Photosoft™ to treat atherosclerosis and infectious diseases and is exploring collaboration opportunities with world-renowned institutions to progress studies on these disease areas.
Investing & Financing activities
Invion recorded a cash outflow of $5 million from investing activities that is related to the one-off payment to RMW for a new licensing and distribution agreement.
The Company received strong support at its General Meeting on 29 March 2022 where 99.9% of shareholders voted in favour of acquiring the new rights to Photosoft™ that significantly expand on the Company's initial Exclusive Licensing agreement with RMW.
Under this new agreement, RMW will contribute its existing intellectual property and know-how in relation to the Photosoft™ technology for the Indications and Invion will pay RMW a one-time amount of $5 million as its contribution to the development costs of the technology.
Invion will have the exclusive distribution rights to the Photosoft™ technology for the treatment of cancers in all Asia Pacific countries, including Hong Kong, but excluding China, Macau, Taiwan, Japan and South Korea.
This expanded agreement is on top of the co-development agreement struck between Invion and RMW Cho, which was announced to the market on 2 June 2021. That agreement gives the Company exclusive rights to Photosoft™ for the treatment of atherosclerosis and infectious diseases (including viral, bacterial, fungal and parasitic) in Asia Pacific1. Invion and RMW Cho will co-fund the development of treatments for these indications.
These collective agreements significantly expand the pipeline of opportunities and markets available to Invion.
Invion also recorded a cash outflow of $25,000 from financing activities due to expenses relating to the Company's capital raising, which was announced to the market in November last year.
This announcement was approved for release by Thian Chew, Chairman of the Board.
____________________________________________
Investor and Media enquiries:
Thian Chew (Chairman & CEO) | Brendon Lau (Investor & Media Relations) |
T: +61 3 9692 7222 | M: +61 409 341 613 |
E:investor@inviongroup.com | E:brendon.lau@inviongroup.com |
About Invion |
Invion is a life-science company that is leading the global research and development of the PhotosoftTM technology for the treatment of a range of cancers, atherosclerosis and infectious diseases. Invion holds the exclusive Australia and New Zealand license rights and exclusive distribution rights to Asia Pacific excluding China (other than Hong Kong, which is included in the Territory), Macau, Taiwan, Japan and South Korea to the PhotosoftTM technology for all cancer indications. It also holds the exclusive rights to the technology in Asia Pacific (excluding Greater China) for atherosclerosis and infectious diseases. Research and clinical cancer trials
1 Asia Pacific includes Asia and Oceania (other than Australia and New Zealand, which are the subject of an existing distribution and licence agreement with RMW), and excludes Middle East, Russia and the specified territories of China, Hong Kong, Macau and Taiwan.
are funded by the technology licensor, RMW Cho Group Limited, via an R&D services agreement with the Company. Invion is listed on the ASX (ASX: IVX).
About Photodynamic Therapy (PDT)
Invion is developing PhotosoftTM technology as a novel next generation Photodynamic Therapy (PDT). PDT uses non-toxic photosensitisers and light to selectively kill cancer cells and promote an anti-cancer immune response. Less invasive than surgery and with minimal side effects, PDT offers an alternative treatment option aimed at achieving complete tumour regression and long-lasting remission.
Rule 4.7B
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
INVION LTD
ABN
76 094 730 417
Quarter ended ("current quarter")
31 March 2022
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 |
| 586 (619) - - - - (446) - - - - - - | 1,839 (1,964) - - - - (1,493) - - - - - 88 |
(479) | (1,530) |
)
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
(a) | entities | - | - |
(b) | businesses | - | - |
(c) | property, plant and equipment | - | - |
(d) | investments | - | - |
(e) | intellectual property | (5,000) | (7,250) |
(f) | other non-current assets | - | - |
Page 1 |
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 (9 months) $A'000 |
| - - - - - - - - - | - - - - - - - - - |
(5,000) | (7,250) |
| - - - (25) - - - - - | 16,638 - - (843) - - - - - |
(25) | 15,795 |
4.
Net increase / (decrease) in cash and cash equivalents for the period
4.1
Cash and cash equivalents at beginning of period
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)
13,556
1,037
(479)
(1,530)
(5,000)
(7,250)
Page 2
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Invion Limited published this content on 20 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 April 2022 04:44:03 UTC.
