AFT Pharmaceuticals Limited logo

AFGT annoucements capital raising to support liquidity

Capital Raise9 June 2020AFTHealthcare

Not for release to US wire services or distribution to the US

Market and Media release 10

th

June 2020


AFT Pharmaceuticals announces capital raising to

support liquidity and optimise capital structure


AFT Pharmaceuticals (NZX:AFT, ASX:AFP) (AFT, the Company), Atkinson Family Trust (AF

Trust) and CRG today announce a capital raising to increase liquidity and reduce

debt.

Placement

AFT is undertaking an underwritten placement, comprised of:

• a primary placement to raise approximately NZ$10 million by issue of new

shares in AFT; and

• a secondary sale of:

o approximately NZ$3.5 million worth of shares by AF Trust; and

o approximately 16 million existing shares by CRG,

(together, the Placement).

The Placement will be followed by a non-underwritten Share Purchase Plan (SPP) of

up to approximately NZ$2 million (together with the Placement, the Capital Raising).

The equity raised by the issue of new shares under the Placement and SPP will be

applied to retire one of AFT’s working capital facilities, improve free cash flow and

provide more flexibility to fund future anticipated growth. The retirement of the

working capital facility is expected to reduce annual interest costs by ~NZ$0.85 million

per annum and reduce FY20 pro forma net debt from NZ$37.1 million to NZ$25.1 million

(1.5x

1

expected FY21 EBITDA

2

) before transaction costs.

The AF Trust is the investment vehicle associated with AFT’s founders, Hartley and

Marree Atkinson. The AF Trust has not sold any shares since AFT’s IPO in 2015 and is


1

Assumes the SPP is fully subscribed.

2

EBITDA is a non-GAAP financial measure. FY21 expected EBITDA reflects the mid-point of Operating Profit

guidance of NZ$14-18 million before depreciation and amortisation of NZ$1.04 million and adjusted to

remove the effects of NZIFRS-16 by deducting operating lease costs of NZ$0.8 million.

selling approximately ~NZ$3.5 million worth of shares in response to investor interest
which represents approximately 1.3% of its current holding

3

. AF Trust will remain the

largest shareholder post transaction with approximately 69% and has no current

intention to sell further shares

4

.

CRG is selling approximately 16 million shares, which represents 100% of its holding in

AFT. To enable CRG to sell its entire holding, AFT has agreed to remove the 12 month

selling restriction currently in place in respect of 468,030 shares held by CRG

5

. CRG has

been a supportive shareholder since 2014, however, the fund in which the AFT

investment is held has now transitioned out of its investment phase and CRG is

returning capital to investors. AFT would like to thank CRG for their longstanding

support of the Company.

The Capital Raising is expected to substantially increase free float of AFT from

approximately 11% to 31% and is expected to provide a corresponding increase to

trading liquidity

4

.

The Placement is underwritten by Bell Potter Securities Limited and Forsyth Barr Group

Limited at a floor price of NZ$3.65, which represents a 22.3% discount to the last closing

price of NZ$4.70 on Tuesday 9

th

June 2020. The final price of the Placement

(Placement Price) will be determined today via a bookbuild.


Share Purchase Plan

AFT is seeking to raise up to approximately NZ$2 million through a non-underwritten

SPP to eligible shareholders.

Under the SPP, holders of existing AFT shares on the share register at 7pm (New Zealand

time) on the record date of Tuesday 9

th

June 2020, and who are eligible shareholders

in New Zealand and Australia, will be invited to subscribe for up to NZ$50,000 of new

fully paid ordinary shares in AFT. The SPP price will be the same as the Placement Price.

Further information in relation to the SPP, including the SPP terms and conditions, will

be outlined in a separate SPP offer document which will be despatched to eligible

shareholders.


Indicative timetable

Placement Date

Announcement, trading halt and bookbuild Wednesday 10

th

June

Trading halt lifted Thursday 11

th

June


3

Based on the underwritten floor price of NZ$3.65

4

Based on the underwritten floor price of NZ$3.65 and assumes the SPP is fully subscribed

5

As required by the ASX Listing Rules, AFT has today filed an amended ASX Appendix 2A form with ASX and

NZX to record the removal of this selling restriction on the 468,030 shares held by CRG.

Settlement date Monday 15
th

June

Allotment and trading of new shares on ASX and NZX Monday 15

th

June

Share Purchase Plan


Record date 7pm NZT, Tuesday 9

th

June

Dispatch of offer document and application form Monday 15

th

June

Share Purchase Plan opens Monday 15

th

June

Share Purchase Plan closes Friday 26

th

June

Allotment of shares Thursday 2

nd

July

Commencement of trading of shares on NZX Thursday 2

nd

July

Commencement of trading of shares on ASX Friday 3

rd

July


For more information about the Capital Raising please refer to the investor

presentation released today on the NZX and ASX.


- Released for and on behalf of AFT Pharmaceuticals limited by Chief Financial Officer

Malcolm Tubby

For more information

Investors Media

Dr Hartley Atkinson Richard Inder

Managing Director The Project

AFT Pharmaceuticals +64 21 645 643

Tel: +64 9 488 0232



About AFT Pharmaceuticals

AFT is a growing multinational pharmaceutical company that develops, markets and

distributes a broad portfolio of pharmaceutical products across a wide range of

therapeutic categories which are distributed across all major pharmaceutical

distribution channels: over the counter (OTC), prescription and hospital. Our product

portfolio comprises both proprietary and in-licensed products, and includes patented,

branded and generic drugs. Our business model is to develop and in-license products

for sale by our own dedicated sales teams in our home markets of Australia and New

Zealand and in certain Southeast Asian markets, and to out-license our products to

local licensees and distributors to the rest of the world.



Not for release or distribution in the United States
This announcement has been prepared for publication in New Zealand and Australia

and may not be released to US wire services or distributed in the United States. This

announcement does not constitute an offer of securities for sale in the United States

or any other jurisdiction. Any securities described in this announcement may not be

offered or sold in the United States absent registration under the US Securities Act of

1933 or an exemption from registration.

---

Working to improve yourhealth
INVESTOR PRESENTATION

JUNE 2020

Investor Presentation June 2020 -Page 2
Disclaimer and ImportantNotice

This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”).

This presentation has been prepared in relation to:

▪the offer of new shares in AFT (“New Shares”) by way of:

▪a placement to selected investors (“Primary Placement”); and

▪share purchase plan to AFT’s existing shareholders with an address in either New Zealand or Australia (“Share Purchase Plan”); and

▪the offer of existing shares in AFT (together with the New Shares, the “Shares”) by:

▪Capital Royalty Partners II –Parallel Fund B (Cayman) L.P., Capital Royalty Partners II –Parallel Fund A L.P., Capital RoyaltyPartners II L.P. and Capital Royalty Partners II (Cayman) L.P.

(together “CRG”); and

▪Hartley Atkinson and Colin McKay as trustees of the Atkinson Family Trust (“AF Trust Sell Down”),

under clause 19 of Schedule 1 of the Financial Markets Conduct Act 2013 (“FMCA”) and section 708A(12G) of the Corporations Act 2001 (Cth) (as notionally inserted by ASIC Instrument 17-0484) and

ASIC Corporations (Share and Interest Purchase Plans) Instrument 2019/547 as amended by ASIC Instrument 20-0572 (together, the “Offer”).

Information

This presentation contains summary information about AFT and its activities which is current as at the date of this presentation. The information in this presentation is of a general nature and does not

purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possibleinvestment in AFT or that would be required in a product disclosure

statement under the FMCA or a prospectus under the Corporations Act 2001 (Cth). The historical information in this presentation is, or is based upon, information that has been released to NZX Limited

(“NZX”) and/or ASX Limited (“ASX”). This presentation should be read in conjunction with AFT’s annual report, market releasesand other periodic and continuous disclosure announcements, which are

available at www.nzx.com and www.asx.com.au.

Any decision to acquire New Shares under the Share Purchase Plan should be made on the basis of the separate offer document to be lodged with NZX (the “Offer Document”). Any eligible shareholder

who wishes to participate in the Share Purchase Plan should review the Offer Document and apply in accordance with the instructions set out in the Offer Document and application form

accompanying the Offer Document or as otherwise communicated to the shareholder. This presentation and the Offer Document do notconstitute an offer, advertisement or invitation in any place in

which, or to any person to whom, it would not be lawful to make such an offer, advertisement or invitation.

Not financial product advice

This presentation is for information purposes only and is not financial or investment advice or a recommendation to acquire AFT’s securities, and has been prepared without taking into account the

objectives, financial situation or needs of prospective investors. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to

their own objectives, financial situation and needs and consult a financial adviser, solicitor, accountant or other professionaladviser if necessary.

Past performance

Any past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. No representations

or warranties are made as to the accuracy or completeness of such information.

Future performance

This presentation includes certain “forward-looking statements” about AFT and the environment in which AFT operates, such as indications of, and guidance on, future earnings and financial position

and performance. Forward-looking information is inherently uncertain and subject to contingencies, known and unknown risks and uncertainties and other factors, many of which are outside of AFT’s

control, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. A number of important factors could cause actual results

or performance to differ materially from the forward-looking statements. No assurance can be given that actual outcomes or performance will not materially differ from the forward-looking

statements. The forward-looking statements are based on information available to AFT as at the date of this presentation. Exceptas required by law or regulation (including the Listing Rules), AFT

undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

Investor Presentation June 2020 -Page 3
Disclaimer and ImportantNotice(cont.)

Non-GAAP/IFRS financial information

Certain financial information included in this presentation are non-GAAP / non-IFRS financial information. This non-GAAP / non-IFRS financial information is not audited, and caution should be

exercised as other companies may calculate these measures differently. The non-GAAP / non-IFRS financial information includes pro forma financial information to which certain adjustments have

been made.

AFT’s financial information has been prepared in accordance with Generally Accepted Accounting Practice and is available at www.nzx.com/companies/AFT or investors.aftpharm.com/Investors. It

complies with the New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for profit oriented entities. AFT’s

financial statements also comply with International Financial Reporting Standards (IFRS).

Distribution of presentation

This presentation must not be distributed in any jurisdiction to the extent that its distribution in that jurisdiction is restricted or prohibited by law or would constitute a breach by AFT of any law. The

distribution of this presentation in other jurisdictions outside New Zealand or Australia may be restricted by law, and persons into whose possession this presentation comes should observe any such

restrictions. Any failure to comply with such restrictions may violate applicable securities laws. See the “Foreign Selling Restrictions” section of this presentation. None of AFT, any person named in this

presentation or any of their affiliates accept or shall have any liability to any person in relation to the distribution or possession of this presentation from or in any jurisdiction.

Not for distribution or release in the United States

This presentation is not for distribution or release in the United States. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The

Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”),or the securities laws of any state or other jurisdiction of the United

States. Accordingly, the Shares may not be offered or sold, directly or indirectly, in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration

requirements of the U.S. Securities Act and applicable securities laws of any state or other jurisdiction of the United States.

Currency

All currency amounts in this presentation are in NZ dollars unless stated otherwise.

Disclaimer:To the maximum extent permitted by law, each of AFT, Forsyth Barr Group Limited and Bell Potter Limited (together, the “Underwriters”), Forsyth Barr Limited and Bell Potter Limited

(together, the “Joint Lead Managers”) and their respective affiliates, related bodies corporate, directors, officers, partners, employees, agents and advisers (together, the “Specified Persons”) disclaim

all liability and responsibility (whether in tort (including negligence) or otherwise) for any direct or indirect loss or damagewhich may be suffered by any person through use of or reliance on anything

contained in, or omitted from, this presentation.

None of the Underwriters, the Joint Lead Managers or any of their respective affiliates, related bodies corporate, directors,officers, partners, employees, agents and advisers have authorised,

permitted or caused the issue, submission, dispatch or provision of this presentation and none of them makes or purports to makeany statement in this presentation and there is no statement in this

presentation which is based on any statement by any of them. The Specified Persons make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of

information in this presentation and, with regard to the Underwriters, the Joint Lead Managers and their respective affiliates, related bodies corporate, directors, officers, partners, employees, agents

and advisers, take no responsibility for any part of this presentation or the Offer.

The Underwriters, the Joint Lead Managers and their respective affiliates, related bodies corporate, directors, officers, partners, employees, agents and advisers make no recommendations as to

whether you or your related parties should participate in the Offer nor do they make any representations or warranties to youconcerning the Offer, and you represent, warrant and agree that you

have not relied on any statements made by the Underwriters, the Joint Lead Managers or their respective affiliates, related bodies corporate, directors, officers, partners, employees, agents and

advisers in relation to the Offer and you further expressly disclaim that you are in a fiduciary relationship with any of them. Statements made in this presentation are made only as at the date of this

presentation. The information in this presentation remains subject to change without notice.

Determination of eligibility of investors for the purposes of the Share Purchase Plan is determined by reference to a number of matters, including legal regimes and the discretion of AFT. AFT, the

Underwriters and the Joint Lead Managers disclaim all liability in respect of the exercise of that discretion to the maximum extent permitted by law.

Investor Presentation June 2020 -Page 4
Foreign selling restrictions

4

International Offer Restrictions

This document does not constitute an offer of ordinary shares ("Shares") of AFT in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any

person, and the Shares may not be offered or sold, in any country outside New Zealand except to the extent permitted below.

Australia

This document and the offer of Shares under the Primary Placement and AF Trust Sell Down (each as defined on page 2) is only made available in Australia to persons to whom a disclosure

document is not required to be given under Chapter 6D of the Australian Corporations Act 2001 (Cth) (“Australian Corporations Act”). This document is not a prospectus, product disclosure

statement or any other form of formal “disclosure document” for the purposes of the Australian Corporations Act, and is not required to, and does not, contain all the information which would

be required in a disclosure document under the Australian Corporations Act. If you are in Australia, this document is made available to you provided you are a person to whom an offer of

securities can be made without a disclosure document such as a professional investor or sophisticated investor for the purposes of Chapter 6D of the Australian Corporations Act (other than in

relation to the sale of Shares that are being offered for sale by CRG (as defined on page 2)).

This document has not been lodged or registered with the Australian Securities and Investments Commission, ASX Limited and any other regulatory body or agency in Australia to the extent

applicable to AFT as a foreign entity admitted as an ASX Foreign Exempt Listing. The persons referred to in this document maynot hold Australian financial services licences and may not be

licensed to provide financial product advice in relation to securities. No “cooling-off” regime will apply to an acquisition of any interest in AFT.

This document does not take into account the investment objectives, financial situation or needs of any particular person. Accordingly, before making any investment decision in relation to this

document, you should assess whether the acquisition of any interest in AFT is appropriate in light of your own financial circumstances or seek professional advice.

Hong Kong

WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it

been authorised by the Securities and Futures Commission in Hong Kong pursuant to the Securities and Futures Ordinance (Cap. 571) of the Laws of Hong Kong (the "SFO"). No action has been

taken in Hong Kong to authorise or register this document or to permit the distribution of this document or any documents issuedin connection with it. Accordingly, the Shares have not been

and will not be offered or sold in Hong Kong other than to "professional investors" (as defined in the SFO and any rules madeunder that ordinance).

No advertisement, invitation or document relating to the Shares has been or will be issued, or has been or will be in the possession of any person for the purpose of issue, in Hong Kong or

elsewhere that is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (exceptifpermitted to do so under the securities laws of Hong Kong) other

than with respect to the Shares that are or are intended to be disposed of only to persons outside Hong Kong or only to professional investors. No person allotted Shares may sell, or offer to sell,

such securities in circumstances that amount to an offer to the public in Hong Kong within six months following the date of issue of such securities.

The contents of this document have not been reviewed by any Hong Kong regulatory authority. You are advised to exercise caution in relation to the offer. If you are in doubt about any of the

contents of this document, you should obtain independent professional advice.

Singapore

This document and any other materials relating to the Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore.

Accordingly, this document and any other document or materials in connection with the offer or sale, or invitation for subscription or purchase, of Shares, may not be issued, circulated or

distributed, nor may the Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore except pursuant to

and in accordance with exemptions in Subdivision (4) of Division 1, Part XIII of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA"), or as otherwise pursuant to, and in

accordance with the conditions of any other applicable provisions of the SFA.

This document has been given to you on the basis that you are (i) an existing holder of AFT’s shares, (ii) an "institutional investor" (as defined in the SFA) or (iii) an "accredited investor"(as

defined in the SFA). In the event that you are not an investor falling within any of the categories set out above, please returnthis document immediately. You may not forward or circulate this

document to any other person in Singapore.

Any offer is not made to you with a view to the Shares being subsequently offered for sale to any other party. There are on-salerestrictions in Singapore that may be applicable to investors who

acquire Shares. As such, investors are advised to acquaint themselves with the SFA provisions relating to resale restrictionsinSingapore and comply accordingly.

Investor Presentation June 2020 -Page 5
AFT was founded 23 years ago by Dr Hartley and Marree Atkinson. Since then AFT has remained an Atkinson-

family controlled business and has grown organically into Australia and internationally

The 2015 IPO raised funds to pursue a more aggressive (and loss-making) R&D-led growth strategy. AFT has

now returned to profitability as intended, as the company was prior to IPO

History of AFT

5

19972004200520092013201420152020

AFT founded by Dr

Hartley and Marree

Atkinson

Development of

Maxigesic

commences

First sales into

Australia

Maxigesic registered

in New Zealand and

sales commence

Maxigesic

registered in

Australia

AFT launches the sale

of products into the

SE Asian market

$33m IPO to fund

new R&D

development

programmes for

Maxigesic and other

proprietary products

2019

AFT returns to

profitability following a

significant investment

period funded by the

2015 IPO

In FY20 AFT delivers

over $100m of

revenue and

operating profit

growth of 87%

Maxigesic sales

commence in

Australia

Investor Presentation June 2020 -Page 6
INVESTOR

PRESENTATION

May 2020

Executive summary

6

AFT Pharmaceuticals

Limited(“AFT”)

develops,licenses and

sells pharmaceutical

products globally

▪Aucklandheadquartered company founded in 1997

▪Portfolioof patentedpharmaceutical products with licensee/distributor network inover 125 countries

▪In-house product developmentteam repurposes existing molecules into IP protected products such as Maxigesic,

MaxigesicIV and Pascomer

▪Demonstratedabilityto take products through clinical trial validation, registration and into sales -extensive clinical

studies have been run by in-house team across the globe

▪In-license products and develop branded products to further expand existing sales operations in Australasia

▪Globally diversified contract manufacturing partners ensure low cost production

Experiencing rapid global

revenue growth and

strong operating cash

flow generation

▪Revenue generated from a mixture of margin on direct sale of goods, licensing fees and royalties

▪FY20Revenue of NZ$105.6m up 24% on FY19

▪Strong cash flow generation with FY20Operating Cash flow of NZ$14.9m

▪Revenue growth is being driven by

―Registration and commencing sales in new countries

―Launchingvariants of existing products in Australasia and new countries

―In-licensing new products developed by others for local Australasia market

▪ExpectedOperating Profit Growth of 23-58% in FY21, before any up-front licensing fees

▪Immediate focus on using surplus cash flow to target net debt of $23–28m. Thereafter the Board of AFT will give

consideration to its ongoing dividend policy

Significantoperating

leverage and increasing

margins

▪Outlookfor fixed cost base largely stagnant despite strong growth outlook

―Major R&D expense largely completed

―Ongoing R&D expense only modest and declining as a % of sales

―Marketing expenses relatively flat and declining as a % of sales due to licensing model ex-Australasia

―No material increase in fixed costs from growth ex-Australasia

▪Licensee and royalty model for markets ex Australasia deliver healthy gross margins with low incremental fixed cost

Capital raising and sell-

down to repay debt and

improve liquidity

▪NZ$10m Placementand NZ$2m Share Purchase Plan to repay debt, resultingin interest savings of ~NZ$0.85m per

annum

▪Approximately$3.5m worth of shares to be sold by HartleyAtkinson and 16,067,045 shares to be sold by CRG

▪Increasesfree float from approximately 11% to approximately 31%

1

and expected to significantly boost liquidity

1

Based on the underwritten floor price of NZ$3.65 and assumes the SPP is fully subscribed

Investor Presentation June 2020 -Page 7
-9.0

-14.8

-10.1

6.1

11.4

14.0

18.0

-20

-15

-10

-5

0

5

10

15

20

FY16FY17FY18FY19FY20FY21F

Operating profit (NZ$m)

Operating profit

1

AFT financials at a glance

7

8

12

17

23

26

28

33

34

40

49

56

64

69

80

85

106

0

20

40

60

80

100

120

'05'06'07'08'09'10'11'12'13'14'15'16'17'18'19'20

Operating revenue (

NZ$m

)

10 year operating revenue CAGR of 14%

-13.9

-19.1

-10.9

1.1

14.9

-25

-20

-15

-10

-5

0

5

10

15

20

FY16FY17FY18FY19FY20

Operating cash flow (

NZ$m

)

Operating cash flow

1

FY20 normalised to exclude $9.8m gainon de-recognition of equity accounted investment

and recognition of net assets acquired at fair value in a step acquisition

Financial year ended 31 March

Investor Presentation June 2020 -Page 8
FY20financialhighlights

8

1

FY20 normalised to exclude $9.8m gain on de-recognition of equity accounted investment and

recognition of net assets acquired at fair value in a step acquisition

40%

Increase in number of countries Maxigesicsold in to

28

24%

Increase in operating revenue to

$105.6m

87%

Increase in normalised operating profit

1

to

$11.4m

229%

Increase in normalised net profit after tax to

$5.3m

$13.8m

Increase in operating cash flow to

$14.9m

Increase in shareholders equity to

$17.3m

239%

Investor Presentation June 2020 -Page 9
Australasian product portfolio

9

AFT has the #1 selling product (Maxigesic) in the Australian para-ibu

1

combo pain relief. AFT’s portfolio

includes a combination of 125 proprietary, branded and generic products which address the following

therapeutic areas:

Pain

Maxigesic, ParaOsteo, ZoRubOA/HP, Fenpaed,

CombolieveDay/Night

Eyecare

Hylo, Novatears, CromoFresh, Opti-soothe Wipes/Mask,

VitAPOS

Vitamins

Ferro-liquid, FerroTab, Ferro-F, Ferro-sachets, Lip VitC,

CalciTab

Allergy

Loraclear, Histaclear, Fexaclear, Levoclear, Allersoothe,

Lorapaed, Becloclear, Steroclear

Gastrointestinal

Gastrosoothe/Forte, LaxTab, Micolette, Nausicalm,

DiaRelieve

Dermatology

Crystaderm, CrystawashHand Sanitizer, Crystasoothe,

ZoRubanti-chafing, Decazol, MycoNail, RestoraNail

Hospital

MaxigesicIV, Injectables

1

Paracetamol and Ibuprofen

Investor Presentation June 2020 -Page 10
Revenue model

Sale of goods

Australasia

▪Direct sales channels in NZ and Australia

▪Includes pharmacy, hospitals, grocery (NZ)

▪In-house sales team of 40 plus six merchandisers

▪45% gross margin

▪87% of current revenues, with the balance being

sales to AFT SE Asia & licensees/distributors ex ANZ

Licensing fees

Rest of World

(“ROW”)

1

▪Upfront fee paid by a licensee for a new territory

for a new product

▪Structure of contracts –typically up-fronts,

milestone payments, minimum volumes, royalties

▪License fees have typically been $2-3mp.a.

▪Sales & marketing expenses borne by licensee

▪High gross margin but lumpier

Sale of goods

and royalty

ROW

▪Product usually contract manufactured for AFT

Pharma and sold to licensee

▪Royalty revenue isa percentage of the net sales

made by the offshore licensee

In our core Australasian market, we directly sell our proprietary products along with a range of in-

licenced products

In offshore markets, we pursue an out-licencing or distributor strategy for selling our proprietary

products, minimising the fixed cost of entering new markets

1

AFT defines ROW as all markets other than Australasia and SE Asia

Revenue by type (FY20)

Sale of goods

(Australasia)

86.7%

Sale of goods

(SE Asia and ROW)

9.4%

Royalties

0.3%

Licensing

3.6%

Investor Presentation June 2020 -Page 11
2

3

4

7

9

20

43

66

131

0

20

40

60

80

100

120

140

FY14FY15FY16FY17FY18FY19FY20FY21FFY22F

Growth drivers

▪Rest of World and South East Asia represented only

13.3% of FY20 revenue but delivered rapid growth of

55% and 130% respectively over FY19 revenue

▪ROW activities contribute to bottom line profit due to

licensing model avoiding in market costs

▪Further growth is expected to be delivered from:

―Being sold in new countries (tripling of countries sold

in expected over the next 2 years)

―Existing countries starting to ramp up after being in

market for 1+ years and positive benefits of licensee

marketing spend is realised

―New variants of current products are made available

to existing countries, such as Maxigesic Intravenous

(IV) and Maxigesic oral solution

Number of countries AFT products sold in

Rest of WorldAustralasia

▪Volume growth of existing products

―Capitalise on Maxigesic#1 market position (Leads

nearest competitor by 11.2%

1

)

―Hylo-Forte -#1 market position

1

―NovaTears-89% growth in FY20

―Vitamin C Liposachets–March 2020 delivered

monthly sales 21x higher than the prior

comparable period

▪New Medicine Registrations

―FY21 –target 11 new approvals in AU & NZ

―FY22 –target 38 new approvals in AU & NZ

1

IRidata, quarter to May 2020

Investor Presentation June 2020 -Page 12
61.4

30.1

9.1

4.9

-

10.0

20.0

30.0

40.0

50.0

60.0

$ m

INVESTOR

PRESENTATION

MAY 2020

Revenuegrowthand regional mix

50.3

26.8

5.9

2.1

-

10.0

20.0

30.0

40.0

50.0

$ m

22% 12% 55% 130%

AustraliaNew ZealandRest of WorldSoutheast Asia

FY2019

4.7%

8.6%

28.5%

58.2%

2.5%

6.9%

31.5%

59.1%

•Continued growth in established markets of Australia and NZ

•Significant growth in Southeast Asia and Rest of World starting to come through post

registration and distribution agreements

FY2020FY2019FY2020

Investor Presentation June 2020 -Page 13
INVESTOR

PRESENTATION

MAY 2020

Sales channels

AFT has broad channel exposure which varies by geography. AFT has an intentional skew towards the Over

the Counter (“OTC”) sales channel where pricing is unaffected by government pricing policies

10%

26%

64%

Australia

29%

13%

58%

New Zealand

14%

84%

2%

SE Asia

16%

8%

76%

Rest of World

16%

24%

60%

Group

PrescriptionHospitalOver-the-counter

FY20 sales by channel

Investor Presentation June 2020 -Page 14
INVESTOR

PRESENTATION

MAY 2020

AFT’s key skill set

Outsourced manufacturing -focus on cost control

Combination of patents and trade secrets protecting product IP

Developing and registering new proprietary/patented products by

repurposing existing molecules

Formulating line extensions of existing proprietary/patented products to

leverage existing brand reputation

Identifying new territories and agreeing licensing agreements with

international licensees/distributors

Identifying opportunities within key therapeutic categories in our ‘home’

Australasian markets and in-licensing relevant products

1

3

2

4

Investor Presentation June 2020 -Page 15
Case study: Maxigesic

15

The lifecycle of Maxigesic development, commercialisation and brand marketing is a clear example of AFT’s

capabilities:

―AFT identified the market for a combined analgesic in 2004

―AFT’s in-house R&D department developed and patent-protected the unique formulation, supported by

independent clinical studies demonstrating its efficacy

―As a new formulation, AFT was successful in educating the market on the benefits of the product and

developing strong consumer brand recognition

―AFT has subsequently entered38global markets with licensing/distributor partners

Maxigesicis patent protected out to 2025-2028, beyond which the brand name is expected to cement

Maxigesic’sOTC position in the market

AFT has now commenced leveraging the brand goodwill into Maxigesicvariants, including:

AFT intends to replicate its approach to Maxigesicwith its R&D pipeline to create further value for AFT

shareholders

―MaxigesicPE (2033 patent)

―MaxigesicHot Drink Sachet

―MaxigesicDry Stick Sachet (2037 patent)

―MaxigesicIV (2031 & 2034 patents)

―MaxigesicCold & Flu

―MaxigesicRapid (2039 patent)

Maxigesicline extensions prolong patent protection until potentially 2039

Investor Presentation June 2020 -Page 16
INVESTOR

PRESENTATION

May 2020

R&D pipeline

16

Pascomer: Treatment of facial angiofibromas

▪Stabilised formulation using proprietary AFT technology

▪Licensed for North America to Timber Pharmaceuticals LLC

▪Granted Orphan Drug designation

▪US IND opened

▪Global Phase II study expected to be completed during 2

nd

half of calendar year 2021, to be followed by Phase III study

with expected completion during 2023

NasoSURF: Intranasal drug delivery instead of an injection

▪Completing device development

▪Drug-device regulatory path

―Multiple potential indications

―Market research US/EU identified first significant

market opportunity

―Patents out to 2036

Investor Presentation June 2020 -Page 17
Outlook

Further drive InternationalSales

▪Keep acceleratingnumber of new countrieslaunched

▪Launchingnew line extensions (e.g. MaxigesicIV)

Extend InternationalLicensing

▪Finaliselicensing agreement discussions in China, Japan, LATAM andUSA

▪Progress commercialisation in additional new territories added

during FY20: Canada, Chile, Columbia, Cyprus Germany, Indonesia,

Pakistan, Peru and Switzerland

Drive Increased UpfrontPayments

▪Maxigesic IV licensing agreements

▪Larger territories such as USA, Japan,China

DriveLocal ANZ Sales

▪Drive Maxigesic sales in AU &NZ

▪New OTC launches in AU &NZ

▪New Covid-19 related product launches

Strong profit growth expected for FY21

▪Expected FY21 Operating Profit in range of NZ$14–18m, representing expected growth

of 23-58%over FY20, before any up-front licensing fees

▪Additional cash flow used to target a net debt position of $23–28m

▪Assess potential for a dividend policy in FY22 once debt is retired to satisfactory level

Working to improve yourhealth
CAPITAL RAISING and SELL

DOWN DETAILS

Investor Presentation June 2020 -Page 19
Offer details

19

Capital Raising summary

•AFT, the Atkinson Family Trust and CRG are undertaking a combined NZ$74.1m

1

Offer comprising a:

•NZ$10.0m Placement by AFT Pharmaceuticals Limited

•NZ$2.0m Share Purchase Plan (“SPP”)

•Approximately NZ$3.5m sell down by the Atkinson Family Trust (representing approximately 1.3%

1

of its current holding)

•16,067,045 share sell down by CRG (representing 100% of current holdings)

•Bell Potter Securities Limited and Forsyth Barr Limited are Joint Lead Managers to the Offer

•The Placement and sell downs are underwritten by Bell Potter Securities Limited and Forsyth Barr Group Limited at a floor price

of NZ$3.65

•The floor price represents a 22.3% discount to the last closing price of NZ$4.70 on 9 June 2020

Share Purchase Plan details

•Offer eligible to New Zealand and Australian shareholders on the register at the record date (7pm NZT, Tuesday 9 June 2020)

•Issue price of the Placement Price

•SPP capped at NZ$2m with a maximum application size of NZ$50,000 per shareholder

1

Based onthe underwritten floor price of NZ$3.65

Investor Presentation June 2020 -Page 20
Use of funds and rationale

20

Use of funds

•Funds raised from the Placement and SPP will be used to retire one of AFT’s working capital facilities

•The retirement of this debt will:

•Reduced annual interest costs by ~NZ$0.85m p.a.

•Reduced Pro-Forma Net Debt from NZ$37.1m to NZ$25.1m

2

•Reduce Net Debt to expected FY21 EBITDA

1

from 2.3x to 1.5x

2

•Improve Free Cash Flow and provides more flexibility to fund future anticipated growth

Sell down rationale

•Due to significant investor interest both the Atkinson Family Trust and CRG have taken the opportunity to sell down

•This sell down is expected to substantially increase free float from approximately 11% to approximately 31%

3

and is expected to provide a

material increase to trading liquidity

Atkinson Family Trust sell down

•Founded AFT and has not sold a share since IPO in 2015

•The sale approximately NZ$3.5m worth of shares, which represents approximately 1.3%

4

of current holdings. The Atkinson Family Trust

will remain the largest shareholder post transaction with approximately 69%

3

•Proceeds used to retire debt. The Atkinson Family Trust has no current intention to sell further shares.

CRG sell down

•CRG is selling 16,067,045 shares, which represents 100% of its holding

•CRG has been a supportive shareholder since 2014 and the fund in which the AFT investment is held has now transitioned out ofits

investment phase and CRG is returning capital to its investors

1

Expected FY21 EBITDA of $16.19m is pre IFRS-16 based on the midpoint of FY21 operating profit guidance and includes $1.04m of D&A and operating lease costs of

$0.8m. Net debt calculated as FY20 drawn bank debt less cash and cash equivalents. Excludes transaction costs

2

Assumes $2m SPP is fully subscribed

3

Based on the underwritten floor price of NZ$3.65 and assumes the SPP is fully subscribed

4

Based on the underwritten floor price of NZ$3.65

Investor Presentation June 2020 -Page 21
Capital structure and share register impact

21

Share register impactPro forma net debt and gearing impact

Share register pre offer

Share register post offer

2

Net debt / FY21

EBITDA

1

2.3x1.5 –1.7x

1

Expected FY21 EBITDA of $16.19m is pre IFRS-16 based on the midpoint of FY21 operating profit guidance and includes $1.04m of D&A and operating lease costs of

$0.8m. Net debt calculated as FY20 drawn bank debt less cash and cash equivalents. Excludes transaction costs

2

Based on underwritten floor price of NZ$3.65 and assumes $2m SPP is fully subscribed

Shares on issue: 100,501,049

Investor Presentation June 2020 -Page 22
Timetable

22

Placement Date

Announcement,trading halt and bookbuildWednesday, 10 June 2020

Trading halt liftedThursday, 11 June 2020

SettlementMonday, 15 June 2020

Allotment and trading of new shares on ASX and NZX Monday, 15 June 2020

Share Purchase Plan

Record date7pm NZT, Tuesday, 9 June 2020

Dispatchof offer documents and application formsMonday, 15 June 2020

Share Purchase Plan opensMonday, 15 June 2020

Share Purchase Plan closesFriday, 26 June 2020

Allotmentof shares on NZX and ASXThursday, 2 July 2020

Commencementof trading of shares on NZXThursday, 2 July 2020

Commencementof trading of shares on ASXFriday, 3 July 2020

Working to improve yourhealth
KEY RISKS

Investor Presentation June 2020 -Page 24
Key risks

24

This section outlines some of the key risks associated with an investment in AFT. These risks could have an effect on the performance of

the AFT share price as well as the financial performance and earnings of AFT. This section does not (and does not purport to)outline all

risks associated with an investment in AFT shares, the future operating or financial performance of AFT, the equity raising or general

market or industry risks. Some risks may be unknown and other risks, currently believed to be immaterial, could turn out to be material.

In light of the Covid-19 pandemic, extra caution should be taken when assessing the risks associated with the investment. The rapidly

changing Covid-19 situation is bringing unprecedented challenges to global financial markets, and economies. Capital markets have seen

equity securities suffer from spikes in volatility and significant price declines and recoveries.

Before deciding whether to invest in AFT shares, you should make your own assessment of the risks associated with an investment in AFT

and consider whether such an investment is suitable for you having regard to all publicly available information (including this presentation

and other information available on the NZX and ASX websites), your personal circumstances and following consultation with a financial or

other professional adviser.

Investor Presentation June 2020 -Page 25
Key risks (cont.)

25

Impact of

Covid-19 on

supply chain

▪AFT’s product supply chain is international and AFT uses third party manufacturers to produce its products. The outbreak of

Covid-19 initially caused some disruption to global supply chains (for example, the Indian government initially placed a

restriction on the export of any products containing paracetamol, which was subsequently lifted). Whilst AFT was able to

manage the resulting issues and does not anticipate any further disruption, there is a risk that a second wave of a Covid-19

outbreak or other negative factors may cause further disruptions which could adversely impact on AFT’s ability to supply

products to customers. If AFT’s supply chain is disrupted, this may have a material adverse effect on AFT’s operating

performance and earnings.

▪AFT mitigates risks of this nature by using multiple manufacturers where possible for its key products and operating a policy

of holding at least three months’ inventory to minimise interruption of supply.

New product

development

▪AFT is continuing to develop new products and extensions to existing products, which it anticipates will be key drivers of the

global expansion of its sales. There is a risk that those development efforts may not be successful, or may take longer and be

more expensive than anticipated, and as a result AFT’s investment will be delayed or lost. This risk could arise due to a

number of factors, including delays in commencement or completion of clinical trials as a result of Covid-19. Any failure or

significant delay in the development of one or more of AFT’s new products and product extensions may have a material

negative impact on AFT’s financial performance and growth.

▪AFT mitigates risks of this nature by focussing on novel combinations and dose forms of approved drug ingredients and

novel delivery systems for approved drug ingredients, which have inherently less development risk than developing new

drug ingredients.

Regulatory

requirements

▪AFT’s pharmaceutical and medical device products are regulated by government agencies in each territory in which they are

sold (for example, TGA in Australia and the FDA in the US) and must be approved by those agencies prior to sale. If AFT is

unable to obtain the approvals required for new products or in new territories (such as FDA approval of Maxigesictablets or

MaxigesicIV), or current approval requirements for existing products change, this could have a material adverse impact on

AFT’s financial performance and its ability to achieve its business plans.

Competition

▪The pharmaceutical industry in which AFT operates is intensely competitive and includes companies with significantly

greater financial, human, research and development and marketing resources that AFT. There is a risk that AFT’s

competitors may discover, develop or commercialise products before or more successfully than AFT, which could render

AFT’s products obsolete or otherwise uncompetitive, resulting in adverse effects on AFT’s revenue, margins and

profitability.

Investor Presentation June 2020 -Page 26
Key risks (cont.)

26

Litigation

▪In the ordinary course of conducting its business, AFT is exposed to potential litigation and other proceedings, including

through claims of intellectual property infringement or breach of agreements. If such proceedings are brought against AFT,

AFT could incur considerable defence costs (even if successful), with the potential for damages and costs awards against AFT

if it were unsuccessful, which could have a significant adverse financial impact on AFT.

▪Circumstances may also arise in which AFT considers that it is reasonable or necessary to initiate litigation or other

proceedings, including for example to protect its intellectual property rights. There has been substantial litigation and other

proceedings in the pharmaceutical industry, including class actions from purchasers and end users of pharmaceutical

products.

Pascomerproceedings

▪As announced to the NZX and ASX on 5

th

June 2020, proceedings have been filed in the New Zealand High Court against AFT

and its managing director, Dr Hartley Atkinson, by British Virgin Islands incorporated PBL Solutions Limited (PBL), the 35%

shareholder in AFT’s 65% owned subsidiary AFT Orphan Pharmaceuticals Limited (AFTO). PBL is owned by interests

associated with MrGiles Moss, a former contractor to AFT. The substance of PBL’s claim is that AFTO rather than AFT should

have had the opportunity to pursue the Pascomer drug development opportunity and that Dr Atkinson breached various

obligations in pursuing that opportunity through AFT.

▪AFTO was established in 2011 as a vehicle for its shareholders to share profits from the marketing and distribution of orphan

drugs only, and only in the SE Asia region. AFT has consistently maintained that AFTO was never intended to act as a drug

development company, was not resourced or capitalisedto do so, and that the opportunity to invest in the development of

Pascomer was not one to which AFTO was entitled. Pascomer was introduced to AFT by Medicas Group LLC of the United

States as no more than a drug development idea based upon publicly available information.

▪The proceedings seek an account of any profits made by AFT in relation to Pascomer including an account of future profits,

or alternatively damages in an amount to be quantified. To date AFT has invested in excess of NZ$5.6m in the Pascomer

drug development project. AFT expects it to be about four years before Pascomer’s commercialisationpotential is able to be

determined, FDA and any other required regulatory approvals obtained, and any sales achieved.

▪AFT and Dr Atkinson will vigorously defend the proceedings and are considering their options in terms of a counterclaim

against both PBL and MrMoss.

Working to improve yourhealth
APPENDIX

Investor Presentation June 2020 -Page 28
INVESTOR

PRESENTATION

MAY 2020

Historic R&D spend

AFT has spent over NZ$55m on R&D since IPO

R&D spend (FY15 –FY20)

Source: AFT annual reports for the years ending 31 March 2015, 2016, 2017, 2018, 2019 and 2020

Investor Presentation June 2020 -Page 30
INVESTOR

PRESENTATION

MAY 2020

Maxigesicclinical results

Source: AFT website

2019 trial results for MaxigesicIV (Labelled as FDC)

Investor Presentation June 2020 -Page 31
INVESTOR

PRESENTATION

MAY 2020

Financial performance -revenueby regionand

channel

31

FY2020

Over-the-counterHospitalPrescription

NZ$000'sFY2019FY2020

Australia50,304 59.1%61,428 58.2%

YoY growth12.6%22.1%

New Zealand26,796 31.5%30,108 28.5%

YoY growth5.4%12.4%

Rest of World5,885 6.9%9,131 8.6%

YoY growth63.4%55.2%

Southeast Asia2,142 2.5%4,930 4.7%

YoY growth66.5%130.2%

Group85,127 100%105,597 100%

YoY growth13.5%24.0%

10%

26%

64%

29%

13%

58%

16%

8%

76%

14%

84%

2%

16%

24%

60%

Investor Presentation June 2020 -Page 32
INVESTOR

PRESENTATION

MAY 2020

Abbreviated consolidated income statement

•Operating leverage starting to show as revenue continues to grow. Expenses largely falling

as a % of revenue.

NZ$'000's year ended 31 March

2020

% of

2019

% of

revenue

revenue

Revenue

105,597

85,127

Gross Profit

48,265

45.7%

40,730

47.8%

Underlying Operating Expenses and Other Income

(36,843)

34.9%

(34,614)

40.7%

Underlying Operating Profit

11,422

10.8%

6,116

7.2%

Non-recurring Gain

9,784

-

Operating Profit

21,206

6,116

Financing expenses and income

(8,329)

(8,375)

Tax Expense

(185)

(168)

Net Profit /(Loss) after tax

12,692

(2,427)

Investor Presentation June 2020 -Page 33
INVESTOR

PRESENTATION

MAY 2020

NZ$'000's year ended 31 March2020 2019

Current assets49,217 44,345

Cash6,119 6,916

Non-current assets31,716 12,334

Total assets87,052 63,595

Current liabilities23,102 16,754

Current interest bearing liabilities2,000 41,750

Non-current liabilities3,495 -

Non-current interest bearing liabilities41,200 -

Total liabilities69,797 58,504

Total equity17,255 5,091

Total liabilities and equity87,052 63,595

•Replaced short term debt with longer term debt at more commercial rates

•Significant increase in shareholders equity

Abbreviated balance sheet

Investor Presentation June 2020 -Page 34
INVESTOR

PRESENTATION

MAY 2020

•Significant increase in operating cash flow

Abbreviated cash flow

NZ$'000's year ended 31 March2020 2019

Net cash from operating activities14,878 1,067

Net cash used in investing activities(6,562) (4,884)

Net cash (used) / generated from financing activities(9,118) 3,723

Net increase / (decrease) in cash(802) (94)

Impact of foreign exchange on cash and cash equivalents5 240

Opening cash and cash equivalents6,916 6,770

Closing cash and cash equivalents6,119 6,916

Working to improve yourhealth

---

103372.5 -















10 June 2020


Client Market Services

NZX Limited

Level 1, NZX Centre

11 Cable Street

Wellington 6011


ASX Limited

20 Bridge Street

Sydney NSW 2000



NOTICE PURSUANT TO CLAUSE 20(1)(a) OF SCHEDULE 8 TO THE

FINANCIAL MARKETS CONDUCT REGULATIONS 2014


1. AFT Pharmaceuticals Limited (NZX:AFT/ASX:AFP) (“AFT”) has announced that:

(a) it intends to undertake a capital raising comprising:

(i) a fully underwritten placement of NZ$10 million of newly issued

ordinary shares (“Placement”); and

(ii) a share purchase plan to AFT’s eligible existing shareholders with

an address in New Zealand or Australia to raise up to NZ$2 million,

which is not underwritten (“SPP”);

(b) Capital Royalty Partners II – Parallel Fund B (Cayman) L.P., Capital

Royalty Partners II – Parallel Fund A L.P., Capital Royalty Partners II L.P.

and Capital Royalty Partners II (Cayman) L.P. (together “CRG”)

propose to sell all of their ordinary shares in AFT, comprising 16,067,045

shares, by way of a fully underwritten bookbuild (“CRG Sell Down”);

and

(c) Hartley Atkinson and Colin McKay as trustees of the Atkinson Family

Trust (“AF Trust”) propose to sell approximately NZ$3.5 million of their

ordinary shares in AFT, by way of a fully underwritten bookbuild (“AF

Trust Sell Down”),

(together, the “Offer”).


103372.5 -

Pg. 2

2. Although initiated independently, the Placement, CRG Sell Down and AF

Trust Sell Down will be conducted contemporaneously such that they will

appear to be a single placement.

3. AFT, CRG and the AF Trust are making the Offer in reliance on the exclusion

in clause 19 of schedule 1 of the Financial Markets Conduct Act 2013

(“FMCA”).

4. This notice is provided under:

(a) clause 20(1)(a) of schedule 8 to the Financial Markets Conduct

Regulations 2014 (“Regulations”);

(b) paragraph 708A(12G) of the Corporations Act 2001 (Cth)

(“Corporations Act”) as notionally inserted by ASIC Instrument 17-0484;

and

(c) ASIC Corporations (Share and Interest Purchase Plans) Instrument

2019/547 as amended by ASIC Instrument 20-0572.

5. AFT will issue the relevant securities under the Placement and SPP

components of the Offer without disclosure to investors under Part 6D.2 of

the Corporations Act.

6. AF Trust will sell the relevant securities under the AF Trust Sell Down

component of the Offer without disclosure to investors under Part 6D.2 of the

Corporations Act.

7. At the date of this notice:

(a) AFT is in compliance with the continuous disclosure obligations that

apply to it in relation to ordinary shares in AFT;

(b) AFT is in compliance with its financial reporting obligations (as defined

in clause 20(5) of Schedule 8 to the Regulations);

(c) AFT has complied with its obligations under Rule 1.15.2 of the ASX Listing

Rules; and

(d) there is no information that is “excluded information” (as defined in

clause 20(5) of Schedule 8 to the Regulations) in respect of AFT.

8. The Offer will not have any material effect or consequence on the control of

AFT within the meaning set out in clause 48 of Schedule 1 to the FMCA.



This notice has been authorised for release to NZX and ASX on behalf of AFT by:

Malcolm Tubby

Chief Financial Officer, AFT

Phone: +64 9 488 0232

malcolm@aftpharma.com


103372.5 -

Pg. 3

This notice has been authorised for release to NZX and ASX on behalf of AF Trust by:

Hartley Atkinson

Phone: +64 9 488 0232

hartley@aftpharm.com


ENDS

---

Corporate Action Notice
(Other than for a Distribution)


Page 1 of 1

Section 1: issuer information (mandatory)

Name of issuer AFT Pharmaceuticals Limited

Class of Financial Product Ordinary shares

NZX ticker code AFT

ISIN (If unknown, check on NZX

website)

NZAFTE0001S4

Name of Registry Computershare Investor Services Limited

Type of corporate action

(Please mark with an X in the relevant

box/es)

Share purchase

plan

X Renounceable

Rights issue


Capital

reconstruction

Non

Renounceable

Rights issue


Call Bonus issue

Record date 09/06/2020

Ex-Date (one business day before the

Record Date)

08/06/2020

Currency NZD

Section 2: Share purchase plans (delete if not applicable)

Maximum dollar amount of Financial

Products to be issued

Up to NZ$50,000 per shareholder / beneficial owner

with a registered address in New Zealand or

Australia, for an aggregate offer size of up to NZ$2

million.

Minimum application amount (if any) No minimum.

Exercise Price The price paid by investors in AFT’s Placement

announced on 10/06/2020.

Scaling reference date By reference to holdings at Record Date

Closing Date 26/06/2020

Allotment Date 02/07/2020

Section 3: Authority for this announcement (mandatory)

Name of person authorised to make this

announcement

Malcolm Tubby

Contact person for this announcement Malcolm Tubby

Contact phone number +64 9 488 0232

Contact email address malcolm@aftpharm.com

Date of release through MAP 10/06/2020

---

This appendix is not available as an online form
Please fill in and submit as a PDF announcement +Rule 2.7

+ See chapter 19 for defined terms

31 January 2020 Page 1

Appendix 2A

Application for quotation of +securities

Information or documents not available now must be given to ASX as soon as available. Information

and documents given to ASX become ASX’s property and may be made public.

If you are an entity incorporated outside Australia and you are seeking quotation of a new class of

+securities other than CDIs, you will need to obtain and provide an International Securities

Identification Number (ISIN) for that class. Further information on the requirement for the notification of

an ISIN is available from the Create Online Forms page. ASX is unable to create the new ISIN for non-

Australian issuers.

*Denotes minimum information required for first lodgement of this form, with exceptions provided in

specific notes for certain questions. The balance of the information, where applicable, must be

provided as soon as reasonably practicable by the entity.

Part 1 – Entity and announcement details

Question

no

Question Answer

1.1 *Name of entity

We (the entity here named) apply for

+quotation of the following +securities and

agree to the matters set out in

Appendix 2A of the ASX Listing Rules.

1


AFT Pharmaceuticals Limited

1.2 *Registration type and number

Please supply your ABN, ARSN, ARBN, ACN or

another registration type and number (if you supply

another registration type, please specify both the type

of registration and the registration number).

ARBN 609 017 969

1.3 *ASX issuer code AFP

1.4 *This announcement is

Tick whichever is applicable.

☐ A new announcement

☒ An update/amendment to a previous

announcement

☐ A cancellation of a previous

announcement

1.4a *Reason for update

Mandatory only if “Update” ticked in Q1.4 above. A

reason must be provided for an update.

Amendment to the terms of issue of the

468,030 ordinary shares (that were issued

in respect of accumulated dividends on the

relevant redeemable preference shares) to

remove the restriction on their ability to be

sold or transferred within the 12 month

period after the issue of those ordinary

shares.

1.4b *Date of previous announcement to this

update

Mandatory only if “Update” ticked in Q1.4 above.

20 May 2020


1

Appendix 2A of the Listing Rules includes a warranty that an offer of the securities for sale within 12 months after their issue

will not require disclosure under section 707(3) or 1012C(6) of the Corporations Act. If the securities to be quoted have been

issued by way of a pro rata offer, to give this warranty, you will generally need to have lodged a cleansing notice with ASX

under section 708AA(2)(f) or 1012DAA(2)(f) of the Corporations Act within 24 hours before the securities are offered (see

ASIC Regulatory Guide 189 Disclosure relief for rights issues). If in doubt, please consult your legal adviser.

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 2

1.4c *Reason for cancellation

Mandatory only if “Cancellation” ticked in Q1.4 above.


1.4d

*Date of previous announcement to this

cancellation

Mandatory only if “Cancellation” ticked in Q1.4 above.


1.5 *Date of this announcement 10 June 2020

Part 2 – Type of issue

Question

No.

Question Answer

2.1 *The +securities to be quoted are:

Select whichever item is applicable.

If you wish to apply for quotation of different types of

issues of securities, please complete a separate

Appendix 2A for each type of issue.

☐ Being issued as part of a transaction or

transactions previously announced to

the market in an Appendix 3B

☐ Being issued under a +dividend or

distribution plan

☐ Being issued as a result of options being

exercised or other +convertible

securities being converted

☐ Unquoted partly paid +securities that

have been paid up and are now quoted

fully paid +securities

☐ +Restricted securities where the escrow

period has expired or is about to expire

☐ +Securities previously issued under an

+employee incentive scheme where the

restrictions on transfer have ceased or

are about to cease

☐ +Securities issued under an +employee

incentive scheme that are not subject to

a restriction on transfer or that are to be

quoted notwithstanding there is a

restriction on transfer

☒ Other


2.2a.1 *Date of Appendix 3B notifying the market

of the proposed issue of +securities for

which quotation is now being sought

Answer this question if your response to Q2.1 is “Being

issued as part of a transaction or transactions

previously announced to the market in an Appendix

3B”


2.2a.2 *Are there any further issues of +securities

yet to take place to complete the

transaction(s) referred to in the

Appendix 3B?

Answer this question if your response to Q2.1 is “Being

issued as part of a transaction or transactions

previously announced to the market in an Appendix

3B”.


Yes or No

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 3

2.2a.2.1 *Please provide details of the further issues

of +securities yet to take place to complete

the transaction(s) referred to in the

Appendix 3B

Answer this question if your response to Q2.1 is “Being

issued as part of a transaction or transactions

previously announced to the market in an Appendix

3B” and your response to Q2.2a.2 is “Yes”.

Please provide details of the proposed dates and

number of securities for the further issues. This may

be the case, for example, if the Appendix 3B related to

an accelerated pro rata offer with an institutional

component being quoted on one date and a retail

component being quoted on a later date.


2.2b.1 *Date of Appendix 3A.1 lodged with ASX in

relation to the underlying +dividend or

distribution

Answer this question if your response to Q2.1 is “Being

issued under a dividend or distribution plan”.


2.2b.2 *Does the +dividend or distribution plan

meet the requirement of listing rule 7.2

exception 4 that it does not impose a limit

on participation?

Answer this question if your response to Q2.1 is “Being

issued under a dividend or distribution plan”.

Note: Exception 4 only applies where security holders

are able to elect to receive all of their dividend or

distribution as securities. For example, Exception 4

would not apply in the following circumstances: 1) The

entity has specified a dollar limit on the level of

participation e.g. security holders can only participate

to a maximum value of $x in respect of their

entitlement, or 2) The entity has specified a maximum

number of securities that can participate in the plan

e.g. security holders can only receive securities in lieu

of dividend payable for x number of securities.


Yes or No

2.2c.1 Please state the number and type of

options that were exercised or other

+convertible securities that were converted

(including their ASX security code)

Answer this question if your response to Q2.1 is “Being

issued as a result of options being exercised or other

convertible securities being converted”.



2.2c.2

And the date the options were exercised or

other +convertible securities were

converted

Answer this question if your response to Q2.1 is “Being

issued as a result of options being exercised or other

convertible securities being converted”.

Note: If this occurred over a range of dates, enter the

date the last of the options was exercised or

convertible securities was converted.


2.2d.1 Please state the number and type of partly

paid +securities (including their ASX

security code) that were fully paid up

Answer this question if your response to Q2.1 is

“Unquoted partly paid securities that have been paid

up and are now quoted fully paid securities”.


This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 4

2.2d.2

And the date the

+

securities were fully paid

up

Answer this question if your response to Q2.1 is

“Unquoted partly paid securities that have been paid

up and are now quoted fully paid securities”.

Note: If this occurred over a range of dates, enter the

date the last of the securities was fully paid up.



2.2e.1

Please state the number and type of

+restricted securities (including their ASX

security code) where the escrow period has

expired or is about to expire

Answer this question if your response to Q2.1 is

“Restricted securities where the escrow period has

expired or is about to expire”.



2.2e.2 And the date the escrow restrictions have

ceased or will cease

Answer this question if your response to Q2.1 is

“Restricted securities where the escrow period has

expired or is about to expire”.

Note: If this occurred over a range of dates, enter the

date the last of the escrow restrictions has ceased or

will cease.


2.2f.1 Please state the number and type of

+securities (including their ASX security

code) previously issued under the

+employee incentive scheme where the

restrictions on transfer have ceased or are

about to cease

Answer this question if your response to Q2.1 is

“Securities previously issued under an employee

incentive scheme where the restrictions on transfer

have ceased or are about to cease”.



2.2f.2

And the date the restrictions on transfer

have ceased or will cease:

Answer this question if your response to Q2.1 is

“Securities previously issued under an employee

incentive scheme where the restrictions on transfer

have ceased or are about to cease”.

Note: If this occurred over a range of dates, enter the

date the last of the restrictions on transfer has ceased

or will cease.



2.2g.1 Please state the number and type of

+securities (including their ASX security

code) issued under an +employee incentive

scheme that are not subject to a restriction

on transfer or that are to be quoted

notwithstanding there is a restriction on

transfer

Answer this question if your response to Q2.1 is

“Securities issued under an employee incentive

scheme that are not subject to a restriction on transfer

or that are to be quoted notwithstanding there is a

restriction on transfer”.


This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 5

2.2g.2 *Please attach a document or provide

details of a URL link for a document lodged

with ASX detailing the terms of the

+employee incentive scheme or a summary

of the terms.

Answer this question if your response to Q2.1 is

“Securities issued under an employee incentive

scheme that are not subject to a restriction on transfer

or that are to be quoted notwithstanding there is a

restriction on transfer”.



2.2g.3

*Are any of these +securities being issued

to +key management personnel (KMP) or

an +associate

Answer this question if your response to Q2.1 is

“Securities issued under an employee incentive

scheme that are not subject to a restriction on transfer

or that are to be quoted notwithstanding there is a

restriction on transfer”.

Yes or No

2.2g.3.a *Provide details of the recipients and the number of +securities issued to each of them.

Answer this question if your response to Q2.1 is “Securities issued under an employee incentive scheme that are

not subject to a restriction on transfer or that are to be quoted notwithstanding there is a restriction on transfer”

and your response to Q2.2g.3 is “Yes”. Repeat the detail in the table below for each KMP involved in the issue. If

the securities are being issued to the KMP, repeat the name of the KMP or insert “Same” in “Name of registered

holder”. If the securities are being issued to an associate of a KMP, insert the name of the associate in “Name of

registered holder”.


Name of KMP Name of registered holder

Number of +securities



2.2h.1 *The purpose(s) for which the entity is

issuing the +securities is:

Answer this question if your response to Q2.1 is

“Other”.

You may select one or more of the items in the list.


☐ To raise additional working capital

☐ To fund the retirement of debt

☐ To pay for the acquisition of an asset

[provide details below]

☐ To pay for services rendered

[provide details below]

☒ Other [provide details below]

Additional details:

Ordinary shares:

1. created upon the conversion of

redeemable preference shares; and

2. issued in respect of accumulated

dividends on the redeemable

preference shares in 1.



This appendix is not available as an online form Appendix 2A
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+ See chapter 19 for defined terms

31 January 2020 Page 6

2.2h.2 *Please provide any further information

needed to understand the circumstances in

which you are applying to have these

+securities quoted on ASX, including (if

applicable) why the issue of the +securities

has not been previously announced to the

market in an Appendix 3B

You must answer this question if your response to

Q2.1 is “Other”. If there is no other information to

provide, please answer “Not applicable” or “N/A”.

The holder of redeemable preference

shares has converted those shares into

ordinary shares (via a change to the rights

attaching to the shares) and has been

issued ordinary shares in respect of

accumulated dividends payable on those

redeemable preference shares.

As AFP has a foreign exempt listing, it has

not provided an Appendix 3B as it is not

required to comply with Listing Rule 3.10.3.

2.2i *Are these +securities being offered under

a +disclosure document or +PDS?

Answer this question if your response to Q2.1 is any

option other than “Being issued as part of a transaction

or transactions previously announced to the market in

an Appendix 3B”.

No

2.2i.1 *Date of +disclosure document or +PDS?

Answer this question if your response to Q2.1 is any

option other than “Being issued as part of a transaction

or transactions previously announced to the market in

an Appendix 3B” and your response to Q2.2i is “Yes”.

Under the Corporations Act, the entity must apply for

quotation of the securities within 7 days of the date of

the disclosure document or PDS.


N/A

2.3 *The +securities to be quoted are:

Tick whichever is applicable

☒ Additional +securities in a class that is

already quoted on ASX ("existing

class")

☐ New +securities in a class that is not yet

quoted on ASX ("new class")

Part 3A – number and type of +securities to be quoted (existing class or

new class) where issue has previously been notified to ASX in

an Appendix 3B

Answer the questions in this Part if your response to Q2.1 is “Being issued as part of a transaction or transactions previously

announced to the market in an Appendix 3B” and your response to Q2.3 is “existing class” or “new class”.

Question

No.


Question Answer

3A.1 *ASX security code & description

3A.2 *Number of +securities to be quoted

Part 3B – number and type of +securities to be quoted (existing class)

where issue has not previously been notified to ASX in an

Appendix 3B

Answer the questions in this Part if your response to Q2.1 is anything other than “Being issued as part of a transaction or

transactions previously announced to the market in an Appendix 3B” and your response to Q2.3 is “existing class”.

Question

No.


Question Answer

3B.1 *ASX security code & description AFP fully paid ordinary shares

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 7

3B.2 *Number of +securities to be quoted 3,068,030 ordinary shares, comprising:

1. 2,600,000 ordinary shares created

upon the conversion of 2,600,000

redeemable preference shares; and

2. 468,030 ordinary shares issued in

respect of accumulated dividends

on the redeemable preference

shares in 1.

3B.3a *Will the +securities to be quoted rank

equally in all respects from their issue date

with the existing issued +securities in that

class?

Yes

On conversion and issue, the ordinary

shares will rank pari passu with the existing

ordinary shares.


3B.3b *Is the actual date from which the

+securities will rank equally (non-ranking

end date) known?

Answer this question if your response to Q3B.3a is

“No”.


Yes or No

3B.3c *Provide the actual non-ranking end date

Answer this question if your response to Q3B.3a is

“No” and your response to Q3B.3b is “Yes”.



3B.3d *Provide the estimated non-ranking end

period

Answer this question if your response to Q3B.3a is

“No” and your response to Q3B.3b is “No”.



3B.3e *Please state the extent to which the

+securities do not rank equally:

• in relation to the next dividend,

distribution or interest payment; or

• for any other reason

Answer this question if your response to Q3B.3a is

“No”.

For example, the securities may not rank at all, or may

rank proportionately based on the percentage of the

period in question they have been on issue, for the

next dividend, distribution or interest payment; or they

may not be entitled to participate in some other event,

such as an entitlement issue.



Part 3C – number and type of +securities to be quoted (new class)

where issue has not previously been notified to ASX in an

Appendix 3B

Answer the questions in this Part if your response to Q2.1 is anything other than “Being issued as part of a transaction or

transactions previously announced to the market in an Appendix 3B” and your response to Q2.3 is “new class”.

Question

No.

Question Answer

3C.1 *Security description

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 8

3C.2 *Security type

Select one item from the list that best describes the

securities the subject of this form. This will determine

more detailed questions to be asked about the security

later in this section. Select “ordinary fully or partly paid

shares/units” for stapled securities or CDIs. For

interest rate securities, please select the appropriate

choice from either “Convertible debt securities” or

“Non-convertible debt securities”. Select “Other” for

performance shares/units and performance

options/rights or if the selections available in the list do

not appropriately describe the security being issued.

☐ Ordinary fully or partly paid shares/units

☐ Options

☐ +Convertible debt securities

☐ Non-convertible +debt securities

☐ Redeemable preference shares/units

☐ Other

3C.3 ISIN code

Answer this question if you are an entity incorporated

outside Australia and you are seeking quotation of a

new class of securities other than CDIs. See also the

note at the top of this form.


3C.4 *Number of +securities to be quoted

3C.5a *Will all the +securities issued in this class

rank equally in all respects from the issue

date?

Yes or No

3C.5b

*Is the actual date from which the

+securities will rank equally (non-ranking

end date) known?

Answer this question if your response to Q3C.5a is

“No”.

Yes or No

3C.5c *Provide the actual non-ranking end date

Answer this question if your response to Q3C.5a is

“No” and your response to Q3C.5b is “Yes”.


3C.5d *Provide the estimated non-ranking end

period

Answer this question if your response to Q3C.5a is

“No” and your response to Q3C.5b is “No”.


3C.5e *Please state the extent to which the

+securities do not rank equally:

• in relation to the next dividend,

distribution or interest payment; or

• for any other reason

Answer this question if your response to Q3C.5a is

“No”.

For example, the securities may not rank at all, or may

rank proportionately based on the percentage of the

period in question they have been on issue, for the

next dividend, distribution or interest payment; or they

may not be entitled to participate in some other event,

such as an entitlement issue.


3C.6 Please attach a document or provide a URL

link for a document lodged with ASX setting

out the material terms of the +securities to

be quoted

You may cross-reference a disclosure document, PDS,

information memorandum, investor presentation or

other announcement with this information provided it

has been released to the ASX Market Announcements

Platform.


This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 9

3C.7 *Have you received confirmation from ASX

that the terms of the +securities are

appropriate and equitable under listing rule

6.1?

Answer this question only if you are an ASX Listing.

(ASX Foreign Exempt Listings and ASX Debt Listings

do not have to answer this question).

If your response is “No” and the securities have any

unusual terms, you should approach ASX as soon as

possible for confirmation under listing rule 6.1 that the

terms are appropriate and equitable.

Yes or No

3C.8 *Provide a distribution schedule for the new +securities according to the categories set out

in the left hand column – including the number of recipients and the total percentage of the

new +securities held by the recipients in each category.

Number of +securities held Number of holders Total percentage of

+securities held

1 – 1,000

1,001 – 5,000

5,001 – 10,000

10,001 – 100,000

100,001 and over

Answer this question only if you are an ASX Listing (ASX Foreign Exempt Listings and ASX Debt Listings do not

have to answer this question) and the securities to be quoted have already been issued.

Note: if the securities to be quoted have not yet been issued, under listing rule 3.10.5, you will need to provide to

ASX a list of the 20 largest recipients of the new +securities, and the number and percentage of the new

+securities received by each of those recipients, and a distribution schedule for the securities when they are

issued.

3C.9a Ordinary fully or partly paid shares/units details

Answer the questions in this section if you selected this security type in your response to Question 3C.2.

*+Security currency

This is the currency in which the face amount of an

issue is denominated. It will also typically be the

currency in which distributions are declared.


*Will there be CDIs issued over the

+securities?

Yes or No

*CDI ratio

Answer this question if you answered “Yes” to the

previous question. This is the ratio at which CDIs can

be transmuted into the underlying security (e.g. 4:1

means 4 CDIs represent 1 underlying security

whereas 1:4 means 1 CDI represents 4 underlying

securities).

X:Y

*Is it a partly paid class of +security? Yes or No

*Paid up amount: unpaid amount

Answer this question if answered “Yes” to the

previous question.

The paid up amount represents the amount of

application money and/or calls which have been paid

on any security considered ‘partly paid’

The unpaid amount represents the unpaid or yet to

be called amount on any security considered ‘partly

paid’.

The amounts should be provided per the security

currency (e.g. if the security currency is AUD, then

the paid up and unpaid amount per security in AUD).

X:Y

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 10

*Is it a stapled +security?

This is a security class that comprises a number of

ordinary shares and/or ordinary units issued by

separate entities that are stapled together for the

purposes of trading.

Yes or No

3C.9b Option details

Answer the questions in this section if you selected this security type in your response to Question 3C.2.

*+Security currency

This is the currency in which the exercise price is

payable.


*Exercise price

The price at which each option can be exercised and

convert into the underlying security.

The exercise price should be provided per the

security currency (i.e. if the security currency is AUD,

the exercise price should be expressed in AUD).


*Expiry date

The date on which the options expire or terminate.



*Details of the number and type of

+security (including its ASX security code

if the +security is quoted on ASX) that will

be issued if an option is exercised

For example, if the option can be exercised to receive

one fully paid ordinary share with ASX security code

ABC, please insert “One fully paid ordinary share

(ASX:ABC)”.


3C.9c

Details of non-convertible +debt securities, +convertible debt securities, or

redeemable preference shares/units

Answer the questions in this section if you selected one of these security types in your response to Question

3C.2.

Refer to Guidance Note 34 and the “Guide to the Naming Conventions and Security Descriptions for ASX Quoted

Debt and Hybrid Securities” for further information on certain terms used in this section

*Type of +security

Select one item from the list

☐ Simple corporate bond

☐ Non-convertible note or bond

☐ Convertible note or bond

☐ Preference share/unit

☐ Capital note

☐ Hybrid security

☐ Other

*+Security currency

This is the currency in which the face value of the

security is denominated. It will also typically be the

currency in which interest or distributions are paid.


Face value

This is the principal amount of each security.

The face value should be provided per the security

currency (i.e. if security currency is AUD, then the

face value per security in AUD).

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 11

*Interest rate type

Select one item from the list

Select the appropriate interest rate type per the terms

of the security. Definitions for each type are provided

in the Guide to the Naming Conventions and Security

Descriptions for ASX Quoted Debt and Hybrid

Securities

☐ Fixed rate

☐ Floating rate

☐ Indexed rate

☐ Variable rate

☐ Zero coupon/no interest

☐ Other


Frequency of coupon/interest payments

per year

Select one item from the list.

☐ Monthly

☐ Quarterly

☐ Semi-annual

☐ Annual

☐ No coupon/interest payments

☐ Other

First interest payment date

A response is not required if you have selected “No

coupon/interest payments” in response to the

question above on the frequency of coupon/interest

payments


Interest rate per annum

Answer this question if the interest rate type is fixed.

% p.a.

*Is the interest rate per annum estimated

at this time?

Answer this question if the interest rate type is fixed.

Yes or No

If the interest rate per annum is estimated,

then what is the date for this information to

be announced to the market (if known)

Answer this question if the interest rate type is fixed

and your response to the previous question is “Yes”.

Answer “Unknown” if the date is not known at this

time.


*Does the interest rate include a reference

rate, base rate or market rate (e.g. BBSW

or CPI)?

Answer this question if the interest rate type is

floating or indexed.

Yes or No

*What is the reference rate, base rate or

market rate?

Answer this question if the interest rate type is

floating or indexed and your response to the previous

question is “Yes”.



*Does the interest rate include a margin

above the reference rate, base rate or

market rate?

Answer this question if the interest rate type is

floating or indexed.


Yes or No

*What is the margin above the reference

rate, base rate or market rate (expressed

as a percent per annum)

Answer this question if the interest rate type is

floating or indexed and your response to the previous

question is “Yes”.

% p.a.

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 12

*S128F of the Income Tax Assessment

Act status applicable to the +security

Select one item from the list

For financial products which are likely to give rise to a

payment to which s128F of the Income Tax

Assessment Act applies, ASX requests issuers to

confirm the s128F status of the security:

• “s128F exempt” means interest payments are not

taxable to non-residents;

• “Not s128F exempt” means interest payments are

taxable to non-residents;

• “s128F exemption status unknown” means the

issuer is unable to advise the status;

• “Not applicable” means s128F is not applicable to

this security

☐ s128F exempt

☐ Not s128F exempt

☐ s128F exemption status unknown

☐ Not applicable


*Is the +security perpetual (i.e. no maturity

date)?

Yes or No

*Maturity date

Answer this question if the security is not perpetual


*Select other features applicable to the

+security

Up to 4 features can be selected. Further information

is available in the Guide to the Naming Conventions

and Security Descriptions for ASX Quoted Debt and

Hybrid Securities.

☐ Simple

☐ Subordinated

☐ Secured

☐ Converting

☐ Convertible

☐ Transformable

☐ Exchangeable

☐ Cumulative

☐ Non-Cumulative

☐ Redeemable

☐ Extendable

☐ Reset

☐ Step-Down

☐ Step-Up

☐ Stapled

☐ None of the above

*Is there a first trigger date on which a

right of conversion, redemption, call or put

can be exercised (whichever is first)?

Yes or No

*If yes, what is the first trigger date

Answer this question if your response to the previous

question is “Yes”.


Details of the number and type of +security

(including its ASX security code if the

+security is quoted on ASX) that will be

issued if the +securities to be quoted are

converted, transformed or exchanged

Answer this question if the security features include

“converting”, “convertible”, “transformable” or

“exchangeable”.

For example, if the security can be converted into

1,000 fully paid ordinary shares with ASX security

code ABC, please insert “1,000 fully paid ordinary

shares (ASX:ABC)”.

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 13

Part 4 – Issue details

Question

No.


Question Answer

4.1 *Have the +securities to be quoted been

issued yet?

Yes

4.1a *What was their date of issue?

Answer this question if your response to Q4.1 is

“Yes”.


In respect of the redeemable preference

shares: 24 March 2017

In respect of the ordinary shares issued on

conversion of the redeemable preference

shares: 20 May 2020

4.1b *What is their proposed date of issue?

Answer this question if your response to Q4.1 is “No”.


4.2

*Are the +securities to be quoted being

issued for a cash consideration?

If the securities are being issued for nil cash

consideration, answer this question “No”.


No

4.2a *In what currency is the cash consideration

being paid

For example, if the consideration is being paid in

Australian Dollars, state AUD.

Answer this question if your response to Q4.2 is

“Yes”.


4.2b *What is the issue price per +security

Answer this question if your response to Q4.2 is “Yes”

and by reference to the issue currency provided in

your response to Q4.2a.

Note: you cannot enter a nil amount here. If the

securities are being issued for nil cash consideration,

answer Q4.2 as “No” and complete Q4.2c and Q4.2d.


4.2c Please describe the consideration being

provided for the +securities to be quoted

Answer this question if your response to Q4.2 is “No”.

Ordinary shares have been:

1. created on conversion of the

redeemable preference shares; or

2. issued in respect of accumulated

dividends on the redeemable

preference shares in 1.


4.2d Please provide an estimate (in AUD) of the

value of the consideration being provided

per +security for the +securities to be

quoted

Answer this question if your response to Q4.2 is “No”.

A$2.54 per share for the ordinary shares

issued in respect of accumulated dividends

on the redeemable preference shares that

have been converted.


4.3 Any other information the entity wishes to

provide about the issue

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 14

Part 5 – Issued capital following quotation

Following the quotation of the +securities the subject of this application, the issued capital of the entity

will comprise:


Note: the figures provided in the tables in sections 5.1 and 5.2 below are used to calculate the total market capitalisation of the

entity published by ASX from time to time. Please make sure you include in the relevant table each class of securities issued by

the entity.

If you have quoted CHESS Depository Interests (CDIs) issued over your securities, include them in the table in section 5.1 and

include in the table in section 5.2 any securities that do not have CDIs issued over them (and therefore are not quoted on ASX).

Restricted securities should only be included in the table in section 5.1 if you are applying to have them quoted because the

escrow period for the securities has expired or is about to expire. Otherwise include them in the table in section 5.2.


5.1

*Quoted +securities (total number of each +class of +securities quoted on ASX following

the +quotation of the +securities the subject of this application)


ASX security code and description Total number of +securities on issue

AFP fully paid ordinary shares





100,496,049


5.2 *Unquoted +securities (total number of each +class of +securities issued but not quoted

on ASX):

ASX security code and description Total number of +securities on issue

Redeemable preference shares



Staff share options


730,000 redeemable preference

shares


485,000 staff share options


Part 6 – Other Listing Rule requirements

The questions in this Part should only be answered if you are an ASX Listing (ASX Foreign Exempt Listings and ASX Debt

Listings do not need to complete this Part) and:

- your response to Q2.1 is “Being issued under a dividend/distribution plan” and the response to Q2.2b.2 is “No”; or

- your response to Q2.1 is “Other”.

Note that if your response to Q2.1 is “Being issued as part of a transaction or transactions previously announced to the market

in an Appendix 3B”, it is assumed that you will have provided the information referred to in this Part in the Appendix 3B.

Question

No.

Question Answer

6.1 *Has the entity obtained, or is it obtaining,

+security holder approval for the issue

under listing rule 7.1?

No

6.1a *Date of meeting or proposed meeting to

approve the issue under listing rule 7.1

Answer this question if the response to Q6.1 is “Yes”.


6.1b

*Are any of the +securities being issued

without +security holder approval using the

entity’s 15% placement capacity under

listing rule 7.1?

Answer this question if the response to Q6.1 is “No”.

No

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 15

6.1b.1 *How many +securities are being issued

without +security holder approval using the

entity’s 15% placement capacity under

listing rule 7.1?

Answer this question if the response to Q6.1 is “No”

and the response to Q6.1b is “Yes”.

Please complete and separately send by email to your

ASX listings adviser a work sheet in the form of

Annexure B to Guidance Note 21 confirming the entity

has the available capacity under listing rule 7.1 to

issue that number of securities.


Not applicable

6.1c *Are any of the +securities being issued

without +security holder approval using the

entity’s additional 10% placement capacity

under listing rule 7.1A (if applicable)?

Answer this question if the response to Q6.1 is “No”.

Not applicable

This appendix is not available as an online form Appendix 2A
Please fill in and submit as a PDF announcement Application for quotation of +securities

+ See chapter 19 for defined terms

31 January 2020 Page 16

6.1c.1 *How many +securities are being issued

without +security holder approval using the

entity’s additional 10% placement capacity

under listing rule 7.1A?

Answer this question if the response to Q6.1 is “No”

and the response to Q6.1c is “Yes”.

Please complete and separately send by email to your

ASX listings adviser a work sheet in the form of

Annexure C to Guidance Note 21 confirming the entity

has the available capacity under listing rule 7.1A to

issue that number of securities.



Introduced 01/12/19, amended 31/01/20

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