Lumos Diagnostics : Operational Update and Accelerated Entitlement Offer

For personal use only

ASX ANNOUNCEMENT

Lumos Diagnostics - Operational Update and Entitlement Offer to

raise approximately A$11.2 million

HIGHLIGHTS

• Doug Ward, an experienced, commercial diagnostics professional, has been appointed as Chief Executive Officer and will commence with Lumos in mid-June 2022
• The company is undertaking a cost reduction program which is targeting a reduction in Lumos' operating cash burn to below US$1.0 million per month by the end of FY22
• Launching a 1 for 2.55 pro rata accelerated non-renounceable entitlement offer to raise approximately A$11.2 million (US$7.9 million1)
• Offer price of A$0.19 per new share, a 22.4% discount to the closing price of Lumos' shares on Wednesday, 1 June 2022
• 1 free new option for every 1 new share issued under the entitlement offer, with an exercise price of A$0.30 per option and expiry date of 30 November 2022
• The funds raised from the entitlement offer will fully fund the company's activities until the end of CY22
• Pro forma cash balance as at 30 April 2022 of US$12.4 million1 following completion of the entitlement offer

Melbourne, VIC. (6 June 2022) - Lumos Diagnostics (ASX:LDX, Lumos or the Company), a leader in rapid point-of-care (POC) diagnostic technologies, is pleased to announce a fully underwritten A$11.2 million (US$7.9 million1) equity raising via a 1 for 2.55 pro rata accelerated non-renounceable entitlement offer to eligible existing shareholders (Entitlement Offer). Participants will also receive 1 free option for every 1 share subscribed for under the Entitlement Offer with an exercise price of A$0.30 per option and an expiry date of 30 November 2022 (Option), (the offer of Options, together with the Entitlement Offer, the

Offer).

The Company is currently in trading halt and such halt will continue until the Company releases an announcement in respect of the outcome of the institutional element of the Entitlement Offer (described below), expected to be released on Wednesday, 8 June 2022.

The Offer will be conducted under a transaction specific prospectus prepared in accordance with s 713 of the Corporations Act 2001 (Cth), to be lodged with ASIC on 6 June 2022.

1 Assumes AUD / USD exchange rate of 0.70.

Lumos Diagnostics Holdings Limited

ACN: 630 476 970

Level 4, 100 Albert Road, South Melbourne VIC 3205 | T: 03 9692 7222

For personal use only

Operating update

Key management changes

Lumos previously announced, on 11 April 2022, changes to the Company's management team and the appointment of Executive Chair, Sam Lanyon, as Interim Chief Executive Officer (CEO) while an extensive executive search was undertaken for a permanent replacement CEO.

Lumos is pleased to announce that Doug Ward, an experienced commercial diagnostics executive, has been appointed to the CEO role and will commence with Lumos in mid-June following completion of his notice obligations to his current employer. Doug brings over 30 years of experience in the diagnostics and life sciences industries, and has held senior executive roles with leading, multinational healthcare companies including Roche / Ventana Medical, GE, Siemens, Bayer, Chiron and Hologic. Details of the key terms and conditions of employment for Doug Ward are provided in Attachment 1.

A number of other leadership changes have also been implemented, including the transition of Rob Sambursky to an external consultant role. In addition, there has been a rationalisation of staff numbers across all functions within the Company.

Cost reduction program

As previously announced2, the Company is undertaking an extensive cost reduction program which is targeting a reduction of Lumos' monthly cash burn rate to below US$1.0 million per month by the end of FY22. This has included:

• an approximately 55% reduction in headcount from 124 FTEs to 55; and
• future discretionary expenses and investments will be subjected to detailed review and scrutiny.

The cost reduction program is designed to better align Lumos' current resources with its immediate, near- term commercial opportunities and to ensure that future expenditure is closely tied with company growth.

Outlook & Prospects

Lumos filed a formal supplementary response to the FDA on 9 May 2022 in relation to FebriDx ®. Based on the FDA stated approval timeframes under the current process, Lumos believes it is on track to receive a decision from the FDA on the regulatory clearance and CLIA status of FebriDx ® in the coming months3. If Lumos receives final clearance from the FDA, it will be allowed to commence sales and marketing activities for FebriDx ® in the U.S.

Regulatory applications for Lumos' ViraDx ™ in the U.S. and Canada are also currently under review by the relevant government bodies which, if successful, may provide co-marketing opportunities alongside FebriDx ®.

1. Refer to ASX Announcement dated 11 April 2022, Lumos Operational Review and Management Changes
2. CLIA refers to the Clinical Laboratory Improvement Amendments. The FDA categorises diagnostic tests on the complexity of the setting in which they can be used in. Tests that are classified as 'waived' tests are simple tests with a low-risk for incorrect result. Waived tests can be used in all primary care and outpatient settings. FebriDx clearance from the FDA within the current timetable is not guaranteed. Refer to Risks on page 24 of the Investor Presentation released to the market today.

Lumos Diagnostics Holdings Limited

ACN: 630 476 970

Level 4, 100 Albert Road, South Melbourne VIC 3205 | T: 03 9692 7222

For personal use only

Lumos intends to prudently and selectively invest in targeted business development activities with a view to building the pipeline of commercial development services and contract manufacturing opportunities and diversifying pipeline of commercial projects that it is working on.

Potential contracts for the purchase of CoviDx ™ are currently under consideration by government departments in Canada and Australia, as well as a few niche opportunities from North American media companies working in Canada.

Equity raising use of proceeds4

Following completion of the Entitlement Offer, raising approximately A$11.2 million (US$7.9 million5), Lumos will have pro forma cash balance as at 30 April 2022 of US$12.5 million5, after paying the costs of the offer.

The funds raised from the Entitlement Offer will fully fund the company's activities until the end of CY22. This will align with the expiry of the options on 30 November 2022 which would potentially raise up to a further A$17.7 million subject to being fully exercised.

The Company intends to use the proceeds of the Entitlement Offer (excluding any funds raised on exercise of Options), together with its existing cash reserves as of 30 April 2022, as follows:

• progress the current applications for regulatory clearances of FebriDx ®, ViraDx ™ and CoviDx ™;
• initiate the commercial launch of these products in the relevant jurisdictions, if applications for regulatory clearances are successful;
• support the development of Lumos' contract development and manufacturing business; and
• for working capital purposes.

Sources of funds	US$ million5
Cash at Bank (30 April 2022)	5.0
Proceeds of the Entitlement Offer	7.9
Total Funds Available	12.9
Expected uses of funds	US$ million5
Infrastructure and Capacity Expansion	0.1
Sales and Marketing	3.1
Regulatory, Clinical and Quality	2.3
Development of Test Pipeline	1.0
Technology Platform Development	0.5

54 Discussion regarding use of proceeds assumes that the Entitlement Offer will be fully subscribed. Assumes AUD / USD exchange rate of 0.70.

Lumos Diagnostics Holdings Limited

ACN: 630 476 970

Level 4, 100 Albert Road, South Melbourne VIC 3205 | T: 03 9692 7222

For personal use only

Working Capital	5.5
Offer Costs	0.4
Total Uses	12.9

Any proceeds from the exercise of Options issued under the Offer are intended to be used to support commercial sales and marketing activities for Lumos' cleared products in relevant markets, business development activities to support the growth of Lumos' services business, and as working capital to support the Company's operations. The above represents a statement of the Company's current intentions as at the date of this ASX Announcement. Investors should note that this may change depending on a number of factors, including the changes in the competitive environment, business performance, strategic and operational considerations, regulatory developments, and market and general economic conditions.

Equity Raising

The fully underwritten equity raising of A$11.2 million (US$7.9 million5) will be completed via a 1 for 2.55 pro rata accelerated non-renounceable entitlement offer to eligible existing shareholders of approximately 59.1 million new fully paid ordinary shares in Lumos (New Shares) and 1 free new Option for every 1 New Share issued, with an exercise price of A$0.30 and exercisable on or before 30 November 2022.

The Offer Price of A$0.19 per New Share under the Offer represents:

• a 17.2% discount to the TERP6 of A$0.230, based on the closing price of Lumos shares on Wednesday, 1 June 2022; and
• a 22.4% discount to the last close of A$0.245, based on the closing price of Lumos shares on Wednesday, 1 June 2022

The Entitlement Offer is non-renounceable and entitlements will not be tradeable or otherwise transferable. Eligible shareholders who do not take up their entitlement under the Entitlement Offer in full or in part, will not receive any value with respect to those entitlements not taken up.

Each New Share issued under the Offer, and each share issued on exercise of an Option, will rank equally with existing fully paid ordinary shares on issue in Lumos. The Company will seek quotation of the Options, subject to satisfaction of the relevant ASX Listing Rules criteria.

Lumos' largest shareholder Planet Innovation has committed for up to A$6.0 million of the Entitlement Offer. This consists of:

• subscribing for its full pro rata entitlement in the Offer, equating to approximately A$3.0 million; and
• a total sub underwriting of A$3.0 million of the Entitlement Offer.

Planet Innovation's voting power in Lumos may increase from its current holding of ~27% up to a maximum of ~34% following completion of the Entitlement Offer.

Lumos' Australian directors who are shareholders intend to participate in the Entitlement Offer.

6 The Theoretical Ex rights Price (TERP) is calculated by reference to Lumos' closing price on Wednesday, 1 June 2022 of A$0.245 per share, being the last trading date prior to the announcement of the Offer. TERP is a theoretical calculation only and the actual price at which Lumos' shares trade immediately after the ex date of the Offer will depend on many factors and may not approximate TERP.

Lumos Diagnostics Holdings Limited

ACN: 630 476 970

Level 4, 100 Albert Road, South Melbourne VIC 3205 | T: 03 9692 7222

For personal use only

Bell Potter Securities Limited and Wilsons Corporate Finance Limited are acting as Joint Lead Managers and Underwriters to the Offer.

Institutional Entitlement Offer

Eligible institutional shareholders will be invited to participate in the Institutional Entitlement Offer, which will commence 10:00am (AEDT) on Monday, 6 June 2022 and is expected to close on Tuesday, 7 June 2022. Eligible institutional shareholders can choose to take up all, part, or none of their entitlement. New Shares not taken up by eligible institutional shareholders by the close of the Institutional Entitlement Offer, and New Shares that would have been offered to ineligible institutional shareholders had they been entitled to participate, will be offered to eligible institutional investors via a shortfall bookbuild to be conducted concurrently with the Institutional Entitlement Offer.

Lumos' shares have been placed in trading halt while the Institutional Entitlement Offer and shortfall bookbuild are undertaken.

Retail Entitlement Offer

Eligible Retail Shareholders (defined below) will be invited to participate in the Retail Entitlement Offer on the same terms as the Institutional Entitlement Offer. The Retail Entitlement Offer is expected to open on Friday, 10 June 2022 and close at 5:00pm (Sydney time) on Thursday, 23 June 2022.

Eligible Retail Shareholders who subscribe for their full entitlement may also apply for additional New Shares under the Top Up Facility (Additional New Shares).

There is no guarantee that those Shareholders will receive the number of Additional New Shares applied for under the Top Up Facility, or any. The number of Additional New Shares available under the Top Up Facility will not exceed the shortfall from the Retail Entitlement Offer. The Directors, after consultation with the Joint Lead Managers, reserve the right to allot and issue Additional New Shares under the Top Up Facility at their discretion.

The Retail Entitlement Offer will be made to all shareholders who:

• were registered as the holder of Shares as at 7.00pm (Sydney time) on the Record Date (being 7:00pm on Wednesday, 8 June 2022);
• have a registered address in Australia or New Zealand;
• are not in the United States nor acting for the account or benefit of a person in the United States or elsewhere outside Australia and New Zealand; and
• do not hold Shares on behalf of another person who resides outside Australia or New Zealand (unless they hold Shares in another eligible capacity),

being, an Eligible Retail Shareholder.

Any Retail Shareholders who are not Eligible Retail Shareholders are 'Ineligible Retail Shareholders'. The Company reserves the right to determine whether a Shareholder is an Eligible Retail Shareholder or an Ineligible Retail Shareholder.

Lumos Diagnostics Holdings Limited

ACN: 630 476 970

Level 4, 100 Albert Road, South Melbourne VIC 3205 | T: 03 9692 7222