ASX Announcements

In the Appendix 4C lodged 30 July 2020 the values represented in the current quarter and year to date columns are not valued in $A’000. The corresponding numbers in the attached amended Appendix 4C have not changed from those released at 10:10am AEST on 30 July 2020.

LCT ended the June quarter with a cash balance of $2,964,873 compared to $3,633,042 in the previous quarter.

Net operating cash flow in the quarter was $(841,919) compared to $140,454 in the previous quarter. Receipts from grants and tax incentives were $40,873 (previous quarter $648,733).

Operating payments were $909,544 compared to $548,032 in the previous quarter. Operating payments include payments to the University of Auckland for obesity and migraine project milestones met prior to lockdown.

During the quarter, the team at the University of Auckland resumed work on the migraine project, LC-002. Professors Debbie Hay and Dame Margaret Brimble and their teams continue with the pre-clinical characterisation of LC-002 and in vivo activity.

CEO, Dr Ken Taylor says LCT’s priority for the quarter ending 30 September is to continue to progress the migraine project, meeting our target milestones.

“We are also continuing discussions on investment and out license opportunities for NTCELL® and both the migraine and obesity projects,” he adds.

LCT ended the June quarter with a cash balance of $2,964,873 compared to $3,633,042 in the previous quarter.

Net operating cash flow in the quarter was $(841,919) compared to $140,454 in the previous quarter. Receipts from grants and tax incentives were $40,873 (previous quarter $648,733).

Operating payments were $909,544 compared to $548,032 in the previous quarter. Operating payments include payments to the University of Auckland for obesity and migraine project milestones met prior to lockdown.

During the quarter, the team at the University of Auckland resumed work on the migraine project, LC-002. Professors Debbie Hay and Dame Margaret Brimble and their teams continue with the pre-clinical characterisation of LC-002 and in vivo activity.

CEO, Dr Ken Taylor says LCT’s priority for the quarter ending 30 September is to continue to progress the migraine project, meeting our target milestones.

“We are also continuing discussions on investment and out license opportunities for NTCELL® and both the migraine and obesity projects,” he adds.

LCT refers to ASX’s letter of 6 July 2020 and confirms that as outlined in our email to you also of 6 July, the only new information contained in the Company’s Newsletter released to ASX on 3 July related to the reopening of the University labs – specifically the Newsletter stated “The team at the University of Auckland has resumed work on the migraine project” under the heading “LC-002 for Treatment of Migraine - work resumes at University of Auckland”.

LCT ended the March quarter with a cash balance of $3,633,042 compared to $3,477,874 in the previous quarter. The cash balance has been boosted by the R&D rebate from Callaghan Innovation, tax credit from the Inland Revenue Department and reduced expenditure at the University of Auckland because of its closure to contain the spread of COVID-19.

Net operating cash flow in the quarter was $140,454 compared to $(967,063) in the previous quarter. Receipts from grants and tax incentives were $648,733 (previous quarter $107,279). Operating payments were $548,032 compared to $1,108,143 in the previous quarter. 

CEO, Dr Ken Taylor says that despite the global impact of COVID-19 and the Level 4 restrictions in New Zealand, business continues for LCT.

“We maintain contacts with the University of Auckland with regards to revised timelines for the obesity and migraine projects, which are dependent on the date the University reopens its laboratories.

“Our activities to pursue the next step for NTCELL® for Parkinson’s disease are also ongoing.”

LCT management work from home during the COVID-19 restrictions. Suppliers have been contacted to obtain relief for payments while LCT’s offices remain closed.

“In all cases suppliers have been very accommodating,” says Dr Taylor. “All the organisations we’ve talked to have understood the need to continue core activities and  pause other services. Our objective is to preserve our cash runway as much as possible.”