ASX Announcements

The board of Living Cell Technologies Limited is working to identify opportunities to reinvigorate the business, evaluating prospects that align with its business strategy.

Through academic, commercial and investment contacts, board members and executives have had a range of confidential discussions about potential new projects and partnerships. The company is not in a position to disclose any further details at present.

Following its exit from the peptide projects with the University of Auckland, LCT continues to conserve cash as the company explores options that align with its strategy. We will update shareholders should we progress any discussions beyond the current very early stages.

The company ended the quarter with a cash balance of $2,240,007 compared to $2,308,702 in the previous quarter.

The company's research and related licence contracts with the University of Auckland will terminate with effect from 25 March 2021. LCT will pay the University net NZD 400,000 on account of work done, and expects to recover part of this amount from third parties.

The contracts were to develop early preclinical candidates of lipidated calcitonin gene-related peptide and lipidated pramlintide peptide compounds for possible treatment of migraine and obesity respectively.

LCT will terminate these projects at the end of the contracts, as the projects did not reach the desired endpoints.

The half yearly report for the six months ended 31 December 2020 is attached.

The consolidated loss after tax for the half year amounted to $643,439 (2019 loss: $225,985).

Research and development cost are significantly down on last year due to COVID-19 and the resulting lockdowns affecting the projects undertaken in conjunction with the University of Auckland. The migraine project milestones were renegotiated due to the delays caused by the lockdowns and the obesity project was put on hold, while resources were focused on progressing the migraine project.

Notice of change of interests of substantial holder.