Rua Bioscience Half Year Results

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com



FOR PUBLIC RELEASE
NZX Limited
Wellington

26 February 2021

Rua Half-Year Result – Company Progressing Strategy, On Track Against Milestones

Highlights H1 2020-21:
• July – Signed binding exclusive New Zealand supplier sales agreement with major German
pharmaceutical wholesaler, Nimbus Health for Rua to supply pharmaceutical grade medicinal
cannabis products.
• August – Granted commercial licence to grow and supply cannabis derived medicines.
• August - Signed supply agreement with cultivation partner, Medbloom to grow and supply
Rua with cannabis plant material.
• October – Commissioned cultivation centre in Ruatorea.
• October – Rua listed on NZX, raises $20 million in IPO.
• November – Rua began its GMP certification process with the audit of its manufacturing
facility in Gisborne by MedSafe.

Rua Bioscience (NZX:RUA) Rua announces its half-year financial results for the six months to 31
December 2020.

The operating loss for the six months to 31 December 2020 was $3.48m. Cash on hand was $19.2m
and investment in property, plant and equipment was $6.23m.

The result was in line with the company’s expectations for the half-year. Investment made by the
company reflected its strategy to invest in focussed areas to deliver initial revenue through the first
export sales of pharmaceutical grade dried cannabis flower to Germany.

During the period, the company achieved key milestones in its strategy, including a successful Initial
Public Offering (IPO) and listing on the NZX Main Board on 22 October 2020. The IPO was
oversubscribed and the company raised the full amount of $20 million.

Rua Chief Executive, Rob Mitchell said Rua Bioscience has an achievable export strategy to provide a
clear path to revenue. “I am pleased to report that Rua progressed well against its key milestones in
this period, and is on track to meet its objectives this financial year.”

Funds raised from the IPO have been deployed across strategic priority areas that underpin achieving
initial sales and revenue. Rua Chief Financial Officer, Hamish White said “As a pre-revenue company,
we have taken a conservative approach to financial planning and management against our strategic
priorities to minimise cash burn and maximise return for every dollar we spend.”


MARKET ANNOUNCEMENT

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com
Update on Key Milestones

1. Progress towards first export sales
Rua’s first material sales will be through wholesale exports of pharmaceutical grade dried cannabis
flower into the German market via our agreement with Nimbus Health. An important step in this
process was the export of dried flower material to Germany for scientific analysis, which was shipped
last week.

The company made further progress toward its Good Manufacturing Practice (GMP) Certification.
Rua’s manufacturing facility in Gisborne was audited by MedSafe in November 2020 as part of the
GMP Certification process. Mr Mitchell said, “We hope to achieve certification by mid to late April,
and while a slight delay on what was originally planned, it is important to note this is unlikely to affect
our ability to achieve first commercial production cycles in late H1 2021 and first export revenues of
dried flower by the end of H2 2021 as planned. The delays were caused by factors outside of our
control. We understand that Rua is the first New Zealand Medicinal Cannabis company to have had a
GMP audit at this time.”

2. Progress on Cultivation Optimization and Capacity
Rua’s own cultivation is also progressing well and as planned. The company’s outdoor cultivation trials
are also underway. First production from cultivation partner MedBloom, was expected in H2 2021,
however this will now be 2022. Discussions continue with additional grower partners in order to
expand cultivation capacity and increase biomass available for supply in H2 2021.

3. Research and Development
Preclinical studies are currently underway to compare cannabinoid compositions for their efficacy and
to assess compounds for potency enhancement. Results are expected in Q2 2021 and will be used for
further product formulation development.

Cannabinoid research is progressing well. Other sources of cannabinoids have been identified and are
currently being investigated for their potential with research partners.

4. Team Capability and Capacity
The Rua team has grown as it builds deliberately towards commercialisation, with three roles filled in
the period, taking the current team to 26.

“We are well advanced in the recruitment process for a Chief Commercial Officer who will develop,
lead and execute Rua’s domestic and global business development and commercial strategy for the
organisation.

“We have also begun our search for a Product Development Manager who will focus on the early stage
of product development and product lifecycle development,” says Mr Mitchell.

Consistent with its economic development aspirations, the company now has 13 staff with whakapapa
to Te Tairāwhiti working at all levels of the organisation.

Outlook
Rua Bioscience is a pharmaceutical company that is aiming to be a leading producer of cannabinoid
derived medicines. The company has a focussed and realistic export strategy, with a clear path to
revenue. Proceeds from the IPO are funding Rua Bioscience’s next stage of growth, building long-term
resilience and accelerating growth.

We understand that Rua is the first New Zealand medicinal cannabis company to undertake Medsafe’s
GMP certification process. Despite minor delays from suppliers due to Covid-19, the company
continues to meet its operational goals to support production when certification is obtained.

PO Box 1387, Gisborne 4040, Aotearoa New Zealand | 0800 RUABIO | www.ruabio.com
Rua’s first material sales will be through wholesale exports of pharmaceutical grade dried cannabis
flower into the German market via our agreement with Nimbus Health. The company’s first
commercial production cycle is expected in late H1 2021 and the company is on track to deliver its
first export revenue by the end of the calendar year, barring any unforeseen impacts, operational
restrictions and/or supply chain issues due to Covid-19 domestically and internationally.

ENDS

For more information please visit www.ruabio.com or contact:
Kerry Donovan
Communications Manager
+64 (21) 128 7689
kerry.donovan@ruabio.com

Notes to Financial Information
During the reporting period Rua obtained legal advice on its employee share option plans (ESOP), this
advice has led to an accounting adjustment of the June 2020 financial results. Refer to note 13. Share
Based Payments for more information.

About Rua Bioscience
Rua Bioscience is a New Zealand pharmaceutical company aiming to be a leading producer of
cannabinoid derived medicines for both export and local markets. Rua has been an early mover in the
sector and was the first private company in New Zealand to receive a licence to cultivate cannabis for
research purposes. Founded in 2017 in Ruatorea as a subsidiary of charitable company Hikurangi
Enterprises Limited, Rua is underpinned by its mission to heal the people and heal the land. It is
committed to New Zealand’s Te Tairāwhiti (East Coast) region and its connection with its local
community. The company has completed facilities for cultivation and manufacturing and is currently
going through the GMP certification process. www.ruabio.com

---

Rua Bioscience Limited
For the six months ended 31 December 2020
Interim Financial Report

Rua
Bioscience
Limited
Contents
Company
Directory
lndependent
Auditor's
RePort
lnterim
Statement
of
Profit
or
Loss and
Other
Comprehensive
lncome
lnterim
Statement
of Changes
in
Equity
lnterim
Statement
of
Financial
Position
lnterim Statement
of Cash
Flows
Notes
forming
part
of
the
lnterim
Financia[
Statements
3
4-5
6
7-8
9
10
11
-23
2

Company
Directory
For the
six
months
ended
31
December
2O2O
Registered
office
address:
Contact
phone
number:
Contact
email
address:
Country
of
incorporation
of
company:
Company
Number:
ISIN:
Legal
form:
Principal
activities:
Directors:
Auditor:
Share
registrar:
Bankers:
Solicitors:
1 Commerce
Place
Awapuni
Gisborne
4071
0800782246
info@ruabio.com
New Zeatand
6484092
NZRUAEOOO4Sl
NZ
Limited
ComPanY
PharmaceuticaI
manufacturer
Trevor
BURT
Panapa
EHAU
Brett
GAMBLE
Martin
SMITH
Anna
Kate
STOVE
PricewaterhouseCooPers
6
Atbion
Street
Napier
41
10
Computershare
lnvestor
Services
Limited
Level
1, 159
Hurstmere
Road
Takapuna,
Aucktand
0622
Kiwibank
Lowndes
Jordan
3

PricewaterhouseCoopers, PwC Centre, 6 Albion Street, PO Box 645, Napier 4140 New Zealand
T: +64 6 835 6144, www.pwc.co.nz
Independent auditor’s review report
To the Shareholders of Rua Bioscience Limited

Report on the interim financial statements

Our conclusion
We have reviewed the interim financial statements of Rua Bioscience Limited (the Company), which
comprise the interim statement of financial position as at 31 December 2020, and the interim
statement of profit or loss and other comprehensive income, the interim statement of changes in
equity and the interim statement of cash flows for the six months ended on that date, and notes
forming part of the interim financial statements which include significant accounting policies and other
explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that these
accompanying interim financial statements of the Company do not present fairly, in all material
respects, the financial position of the Company as at 31 December 2020, and its financial performance
and cash flows for the six months then ended, in accordance with International Accounting Standard
34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting
Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibility is further described in the Auditor’s responsibility for the
review of the financial statements section of our report.
We are independent of the Company in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. Other than in our capacity as auditor
we have no relationship with, or interests in, the Company.
Directors’ responsibility for the financial statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair
presentation of these interim financial statements in accordance with IAS 34 and NZ IAS 34 and for
such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of interim financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility for the review of the financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared in all
material respects, in accordance with IAS 34 and NZ IAS 34. A review of interim financial statements
in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand) and International
Standards on Auditing and consequently does not enable us to obtain assurance that we might
identify in an audit. Accordingly, we do not express an audit opinion on these interim financial
statements.

PwC 5
Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s Shareholders those matters which we are
required to state to them in our review report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Shareholders, as a body,
for our review procedures, for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Maxwell
John Dixon.

For and on behalf of:





Chartered Accountants Napier
25 February 2021

Rua
Bioscience
Limited
lnterim
statement
of
profit
or
loss
and
other
comPrehensive
income
For the
six
months
ended
31
December
2O2O
Note
5
For
the six
months
ended
31
December
2020
(unaudited)
s
For
the
six
months
ended
31
December
2019
(unaudited)
s
Research
and
development
expenses
Other
expenses
Operating
loss
before
net
financing
costs
Other
income
lnterest
income
lnterest
expense
lnterest
expense
-
leases
Net
finance
(expense)/income
Loss
before
tax
lncome
tax
credit/(exPense)
Loss
after
tax
Other
comprehensive
income
Total
comprehensive
loss
for
the
period
attributable
to shareholders
Earnings
per
share
attributable
to the
ordinary
equity
holders
of
the
parent
Loss
from
operations
Basic
(S)
Dituted
(S)
(881,637)
(730,539)
(2,
593,s96)
(1,
317,443\
(3,475,2331
(2,047,982)
268,860
313,854
2,416
(8,480)
(8,948)
24,828
(1,756)
6.1961
6
(15,O12)
16,876
(3,221,385)
(,717,2521
888,1
07
352,388
Q.333.2781
(.364.8641
(2,333,278)
(1,364,864)
(0.02)*
(0.02)*
(0.01)**
(0.01)**
*on
15 September
2020, the
company
completed
a
5.882:1
share
split.
**Shere
and
per
share
amounts
have been
retrospectively
restated
for
the
prior
period
to
reflect
the
5.882:1
share
split
completed
on
15 September
2020
The above
statements
should
be
read
in conjunction
with
the
occomponying
notes.
6
_fu
wc

Opening
balance
at
1
July
2020
(audited)
Correction
of
prior
period
error
Restated
opening
balance
at
1
July
2020
(unaudited)
Rua
Bioscience
Limited
lnterim
statement
of
changes
in
equity
For
the
six
months
ended
31
December
2020
Note
Share
capital
s
18
922
913
13
18,922,913
20,000,000
(1,504,414\
1
8,495,586
Share
option
reserve
s
336
108
_37.1J3fi2_
_____M&62
(75.800)
86
983
11
183
260,308
(4,781,260\
14,401,961
(2,333,2781
(2,333,2781
(2,333,278)
(2,333,2781
303
354
20,000,000
(1,504,4141
303.354
303,354
18,798,940
Total
comprehensive
loss
for
the
period
-
Loss
for
the
period
-
Other
comprehensive
income
Total
comprehensive
loss
for
the
period
Transactions
with
owners
of
the
Company
-
lssue
of
share
capital
-
Costs
of
issuing
share
capital
-
Emptoyee
share
options
expense
Total
transactions
with
owners
of
the
Company
Batance
at
31
December
2020
(unaudited)
The
above
statements
should
be
read
in
conjunction
with
the
accompanying
notes
Accumulated
losses
s
u.868.2431
(7.114.s38)
Total
equity
s
14,390,778
__3O$67.623_
&
7
pwc

Note
Share
capital
s
12.480.242
Opening
balance
at
1
July
2019
(audited)
Total
comprehensive
loss
for
the
period
-
Loss
for
the
period
-
Other
comprehensive
income
Total
comprehensive
loss
for
the
period
Transactions
with
owners
of
the
Company
-
Funds
received
for
share
capitat
(to
be
issued)
-
Costs
of
issuing
future
share
capital
-
lssue
of
employee
share
options
Total
transactions
with
owners
of
the
Company
Balance
at
31
December
2019
(unaudited)
12.480.242
The
above
statements
should
be
read
in
conjunction
with
the
accompanying
notes.
Rua
Bioscience
Limited
Interim
statement
of
changes
in
equity
For
the
six
months
ended
31
December
2019
Share
option
reserve
s
55
888
Un-issued
share
capital
5
2,732,046
(210,286)
55,888
2,521,760
______
qqg_
___]ElJ60_
(1,364,863)
(1,364,863)
(1.364.863)
(1.364.863)
2,732,046
(210,2861
55,888
2,577,648
(3,333,071)
1
1,724,819
Accumulated
Losses
s
(1,968,208)
Total
equity
s
10.512.034
8
_fu
pwc

Rua
Bioscience
Limited
lnterim
statement
of
financial
position
As at 31
December
2020
Note
13
8
8
13
12
As at
31
December
2020
s
(unaudited)
As at
30 June
2020
s
(unaudited*)
Current
assets
Cash
and cash
equivalents
Other
receivabtes
Prepayments
Total current
assets
Non-current
assets
Property,
ptant
and equipment
Goodwitt
Right-of-use
lease
assets
Other
receivables
Deferred
tax
asset
Total non-current
assets
Total assets
Current
liabilities
Trade and
other
payabtes
Emptoyee
benefit
tiabitities
Lease Iiabitities
Borrowings
Deferred
grant
income
Share-based
payment
tiabititY
Total current
liabilities
Non-current
liabilities
Lease
tiabitities
Borrowings
Share-based
payment
tiabititY
Total non-current
liabilities
Total liabilities
Net assets
Equity
Accumutated losses
Share capital
Share
option
reserve
Total equity
19,207,844
499,409
158,211
3,937,501
800,837
81,998
19,865,464
4,820,336
13
7
7
8
8
6,233,938
4,oo0,ooo
267,819
75,000
1,696,312
5,658,360
4,ooo,ooo
252,955
197,256
798,205
12,263,069
10,906,776
32,128,533
15,727,112
402,777
216,312
89,488
31,976
578,182
169,406
68,935
78,169
91,636
304994
12
277
1,045,547
998,605
1 88,253
27,110
190,928
10,762
124.856
215,363
326,546
1,260,910
1,325,151
30,867,623
14,401,961
(7,114,538\
37,418,499
563,662
(4,781,2601
18,922,913
260,308
30,867,623
14,401,961
The
interim
financiat
statements
on
pages
6to23
were
approved
and
authorised
for
issue by
the
Board
of
Directors
on
25 February
2021and
were
signed
on
its behatf
by:
(Director)
(Director)
rativefigureswereauoit"a@restatedfiguresas
.
The 30
June
2020 compa
disctosed
in
note 13.
The above statements
should
be
read in conjunction
with
the
accompanying
notes
&
pwc
9

Rua
Bioscience
Limited
lnterim
statement
of
cash
flows
For the six
months
ended
31
December
2O2O
Note
For
the 6
months
to
31
Dec
2020
(unaudited)
s
For the
6
months
to
31
Dec
2019
(unaudited)
s
Cash
flows
from
operating
activities
Grant
income
received
Payments
to
suppliers
and emptoyees
Net cash
inflows/(outflows)
from operating
activities
646,305
620,7051
2,761
(2,
(2,
969.2491
(1,974,4OO)
(2,966,488)
25,139
36,524
2,ooo,ooo
2,400
15,739
(1,098,780)
(75,000)
(1,752,9821
(1,132,9021
285,942
20,000,000
2,732,046
(20,005)
(19,1141
(4,492)
(57,6141
18,377,645
2,530,821
15,
270,343
(
149.7251
3,937,501
4,173,122
19,
207,844
4,O
23.397
Cash
flows
from
investing
activities
lnterest income
lnvestment
dePosits
maturitY
Proceeds
from
the
sale
of
property,
ptant
and
equipment
Purchase
of
property,
plant
and
equipment
Payment
in
retation
to
listing
bond
Net
cash
inflows/(outflows)
from
investing
activities
Cash
flows
from
financing
activities
lssue
of ordinary
shares
Proceeds
for shares
to
be
issued
Repayment
of
borrowings
Repayment
of lease
tiabitities
lnterest
paid
Share
issue
costs
paid
Net
cash
inflows/(outflows)
from
financing
activities
(56,955)
(39,7841
(17,478)
(1
.508,1
88)
Net
increase/(decrease)
in cash
and
cash
equivalents
Cash
and
cash
equivalents
at beginning
of
the
period
Exchange
(tosses)/gains on
cash and
cash
equivatents
Cash
and
cash
equivalents
at
end
of the
period
The above
statements
should
be
read
in conjunction
with
the
occompanying
notes.
&
pvt
c
10

Rua
Bioscience
Limited
Notes
forming
part
of the
interim
financial
statements
For the
six
months
ended
31
December
2O2O
1.
Reporting
EntitY
Rua
Bioscience
Limited
(formerty
Hikurangi
Cannabis
Company
Ltd)
("the
Company")
is a
company
incorporated
and
domicited
in
New
Zeatand
and
registered
under
the
Companies
Act
1993.
The Company
is
principatty engaged
in the
business
of
pharmaceuticats
manufacturing.
Hikurangi
Hemp Company
Ltd was
incorporated
on
26 October
2017
and
changed
its name
to
Hikurangi
Cannabis
Company
Ltd on
26 January
2018,
and
to
Rua
Bioscience
on 7
October2019.
2.
Basis of
preparation
(a)
Statement
of comPliance
These
unaudited
condensed
interim
financiat
statements
have
been
prepared
for
the six
months
ended
31
December
2020.
The Company
is designated
as
a
profit-oriented entity
for
financial
reporting.
These
financiat
statements
provide
an
update
on the
interim
performance
of
the
Company,
ind shoutd
be
read
in conjunction
with
the
futt
year
financia[
statements
presented
io1"
ine
year
ended
30 June
2020
from which
the same
accounting
policies
and
methods
of computation
have
been
fottowed'
The
interim
financial
statements
are
prepared
in accordance
with:
.
NZ
IAS
34
lnterim
Financiat
Reporting
and
IAS 34
lnterim
Financial
Reporting.
.
Generalty
Accepted
Accounting
Practice
in New
Zealand
(Nz
GAAP).
.
The accounting
poticies
and
methods
of computation
in
the
most
recent
annual
financial
statements.
.
The
FinancialMarkets
conduct
Act
2013, and
NZX equity
listing
rutes.
The
Company
is a
for-profit
entity
for the
purposes
of
complying
with
NZ
GAAP.
The financial
statements
are
presented
in New
Zealand
dottars
(5),
which
is atso
the
Company's
functionaI
currency.
Att
financiat
information
presented has been
rounded
to
the
nearest
dotlar.
(
b)
Si
gni
fi
cant
accounti
ng
poli
ci es
The accounting
policies
and
computation
methods
used
in the
preparation
of
the
interim
financial
statements
are
consistent
with
those
used
as at
30
June
2020
and
31
December
201 9.
(c)
Basis
of
measurement
The
interim
financiat
statements
have
been
prepared
on
a historica[
cost
basis,
except
for the
fottowing
items
(refer
to
individual
accounting
policies
for details):
-
Borrowings
(fair
value
disctosed)
-
note
4
-
Financia[
assets
and
tiabitities
at
amortised
cost
(fair
value
disclosed)
-
note
4
-
Liabitities
for cash-settted
share-based
payments
- (presented as share
based
payment
tiabitity
in the statement
of
financiaI
position)
s
pwc
11

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For the six
months
ended
31
December
2O2O
2.
Basis
of
preparation
(continued)
(d)New stondards,
interpretations
and
amendments
effective
for
the
first
time
The
Company
has
not adopted
any
significant
new standards,
interpretations
and
amendments
in the
interim
period
with
a materia[
impact
on the
financial
statements.
(e)
Accounting
estimates
and
judgements
mode
There
have
been
no material
revisions
to
the
nature
and
amount
of estimates
of,
and
judgements
in
relation
to,
amounts
reported
in
prior
periods.
(f)
Going
concern
ln october
2020, the
company
successfutty
compteted
the
listing
of the
company
o-n
the New
Zeatand
Stock
Exchange
(t'lZXi
raising
520
mittion
in capitat.
The
Company
has
significant
cash
reseryes
that
attow
it-to
continue
aia
going
concern
until
at
least
the
end
of
FY2022-
Before
the
end
of
Fy2022
revenue
from
the
sales
of
products
(ftower
&
oits)
is expected
to
have
commenced.
lts
forecast
that
the
sates
of
products
witt
ctimb
and
the
income
generated
from
these
witt
fund
the
operations
of
the
company
to
the
point
where
the
Company
is financiatly
sustainabte.
Currently
there
are
no
indications
that
the
Companywilt
not be
abte.to.continue
ii
"
going
concern.
T'here
are
risks
retated
to the
assumptions
being
made,
particutarty
around
ontaining-CMp
certification,
the
timing
of supptying
product
to
market
and
product votumes
and
thelates
price
of these
products. The Company
is
monitoring
and
managing
these
risks,
however
there
is no
indications
at this
point
in time
that
they
witt
affect
the
Company's
abitity
to continue
as
a
going
concern.
(g)
lmpact
of
COVID-19
The Company
has
considered
the
potentiat
impact
of
COVID-19
as
part
of
its
preparation of
these
accounts
and
in retation
to tne
operations.
PharmaceuticaI
manufacturing
is
considered
an essential
service
and,
as such,
Rua
has and
plans
to
continue
trading
throughout
all
alert
[evets.
This has
timited
the
impact
of COVID-19
and
the
Government's
response
on
the
Company.
The Company
has
experienced
detays
in
receiving
goods
and
services
from
inteinationat
supptiers
and
market
partners
who
have been
affected
from
Covid-19.
_fu
purc
12

Rua Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For
the
six
months
ended
31
December
2O2O
4. Financial
instruments
and
Financial
Risk Management,
and
CapitalManagement
cateqories
and
fair vatues
of the
companv's
financial
instruments
3.
Segment
RePorting
The
Company
operates
predominantty
in one
segment,
its
primary
business
being
pharmaceuticaI
manufacturing
in New
Zeatand.
The chief
operating
decision
maker
has been
identified
as
the
Chief
Executive
Officer
(CEO)
as
they
make
att
t-he
key strategic
resource
attocation
decisions
retated
to
the
Company's
segment.
31
December
2020
(unaudited)
Cash
and
cash
equivalents
Other
receivables
Trade
and
other
payables
Borrowings
Lease [iabilities
Total
30
June
2O2O
(audited)
Cash
and
cash
equivalents
Trade and
other
payabtes
Borrowings
Lease
tiabitities
Financial
Assets
at
Amortised
Cost
19,207,844
75,000
Financial
Liabilities
at
Amortised
Cost
(402,7771
(31,976)
(277,7411
Total
Carrying
Amount
19,207,844
75,000
(402,777\
(31,976)
(277,1411
(578,1
B2)
(88,931)
(259,863)
Value
s
s
(a)
(a)
(o)
(b)
(b)
(a)
(b)
(b)
Fair
s
s
19,282,844
(712,4941
3,937,501
3,937,501
(a)
(578,'182)
(88,931)
(259,863)
3,937,501
(926,9761
(a)
Due
to their
short-term
nature,
the
carryingvalue
of
these
financial
i.nstruments
approximates
their
fair
value.
ih"y
or" classified
as level
3
f'air
vatues-
in1h"
1oi,
value
hierarchy
due
to
the
inclusion
of unobservable
inputs
including
counterparty
and
own
credit
risk.
(b) Due
to the
market
rate
ol tending
for
the remaining
term
and
outs.tandin.g
balance
not
being
materially
different
lrim
tne
cuTent
effect{ve
inteiest
rate,
the
carrying
vqlye
of.
thes.e
financial
instruments
approximates
their
'fair
value. They
are
ctassified
as
level
3
fair
values
in the
fair
value hierarchy
due
to the
inclusion
of
unobservable
inputs
including
own credit
risk.
&
pwtr"
13

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For the six
months
ended
31
December
2O2O
5.
Revenue
and
other
income
Revenue
and
other
income
streams
recognised
by the
Company
include
6
months
to
31
Dec
2020
(unaudited)
s
6
months
to
31
Dec
2019
(unaudited)
s
268,860
268,860
313,854
Since
tisting
on
the
NZX, the
Company
is no longer
etigibte
for research
and
devetopment
tax loss
cash
out and
therefore
no
income
has been
recognised
for the
six
months
ended
31
December
2020
(Six
months ended
31 December
2019:
5204,551
).
6. lncome
tax
Tax is charged
at28%
for the
six
months
ended
31
December
2020
(2019:28%) representing
the
best
estimite
of the
average
annual
effective
tax
rate expected
to
appty
for the
fu[[
year,
apptied
to the
pre-tax
income
of the
six
month
period.
The Company
has assessed
the
realisation
of the
deferred
tax asset
at
the
reporting
date
and
considers
th;t
it
is
probabte
that
future
taxabte
profits
witt
be avaitabte
to
reatise
the
deferred
tax asset.
Key
factors supporting
the
assessment
inctude:
.
Securing
an
export
agreement
with
German
distributor,
Nimbus
Heatth
.
Progress
towards
obtaining
the
required
licenses
to
commence
commercia[
production
and
sales
to
target
markets
o
Forecasted
taxabte
profits
in the
foreseeable
future that
are
sufficient
to
utilise
the
deferred tax
asset
o
lntention
from
the NZ
Government
to
reptace
the
shareholder
continuity
rutes
with
the
"same
or
similar
business
test"
for the
2021
income
year
7.
Property,
plant
and
equipment
and
Right-of-use
lease
assets
Significant
transactions
during
the 6
months
to
31 December
2020
r
The Company
has
incurred
an
additionat
5570,831
on the
construction
of
its new
Ruatoria
Ptant
and
Extraction
facilities.
o
The
Company
has entered
into two
additionatvehicle
teases,
resutting
in an
additional
557,662
of
right-of-use
lease
assets.
Revenue
(from
contracts
with
customers)
Research
and
devetopment
grant
income
Gain on
sale
of
Property,
ptant
and
equipment
Total
313,128
726
s
pwc
14

Rua
Bioscience
Limited
Notes
forming
part
of the
interim
financial
statements
For the
six
months
ended
31
December
2O2O
8.
Borrowings
and
Lease liabilities
Significant
movements
in the
Company's
debt
batances
(Borrowings and
Lease liabilities)
during
the
period
are
detaited
in the
tabtes
betow:
6 months
to
31
Dec
2020
(unaudited)
nElEilEM
crsn
casn
New
leases
Drawdown
PaYment
sss
Borrowings
Lease
tiabitities
Borrowings
Lease
liabitities
Opening
s
88,931
259,863
57,662
(56,955)
(39,7841
Closing
s
31,976
277,741
348
794
57,662
o6,7391
309,717
6
months
to
31
Dec 2019
(unaudited)
CASH
CASH
Opening
New
leases
s
93,182
123,618
Unpaid
Drawdown
accrued
interest
ss
Payment
Closing
s
s
(20,005)
(19,114),
s
73,177
253,1 55
145,192
3,459
216,800
145,192
3.459
0
(39,1
19)
326.332
s
pwc
15

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For the six
months
ended
31
December
2O2O
9.
Related
party
transactions
6l^onths
to
31
December
2019
The Company
has
no ultimate
parent
entity.
-
Hikurangi
Hemp
Hotdings
Limited
-
Biocann
lnvestments
Limited
-
Fang
Group
lnvestment
Limited
lndividuat
shareholders
of the
Company
include
6
l{onths
to
31
December
2020
The Company
tisted
on
the NZX
on
22 October
7020.
The Company
has no ultimate
parent
entity.
There
are
no individuat
sharehotders
hotding
more
than
20%
of the
ordinary
shares
of the
Company
at
reporting
date'
During
the
period
the
Company
entered
into
the betow
transactions
with
entities
related
to
sharehotders
and
key
management
personnel.
Nature
of
transactions
Purchases
Purchases
Purchases
Transaction
amount
6 Months
to 31
Dec
2020
(unaudited)
s
5,416
3,450
Amounts
receivable
(payable)
31
December
2O20
(unaudited)
s
Digital
Accounting
Limited
EECOMS
Mitchet
Famity
Trust
_ffi
wc
16

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For
the six
months
ended
31
December
2O2O
9.
Related
party
transactions
(continued)
Directors
fees
Short-term
em
PtoYee
benefits
Defined
contribution
ptan
payments
Share-
based
payment
expense
Total
key
management
Personnel
compensation
6
Months
to
31
Dec
2019
(unaudited)
s
5
Digital
Accounting
Limited
EECOMS
Mitchet
Family
Trust
As detaited
in note
1 1 of the
30
June
2020
Annuat
Financial
Statements,
in the
2019
year,
a
business
combination
transaction
was
entered
into
with
Hikurangi
Bioactives
Limited
Partnership
(HBLP),
a sharehotder
of
Hikurangi
Hemp
Hotdings
Limited.
Key
management
personnel
compensation
Compensation
of
key management
personnet
(being
those
persons
having
authority
and
responsibitity
for
ptanning,
directing
and
controtting
the
activities
of
the
Company,
inctuding
the
directors)
was
as
foltows:
Nature
of
transactions
Purchases
Purchases
Purchases
Transaction
amount
627
11,179
6
months
to
31
Dec
2020
(unaudited)
s
106,010
441,611
12,727
448549
1,oog,B97
Amounts
receivable
(payable)
30
June
2020
(audited)
g4;
220
1
6
months
to
31
December
2019
(unaudited)
s
113,784
261,144
8,514
51507
434,949
1 0. Contingent
liabilities
There
were
no contingent
tiabitities
at
the
end
of the
period
(20'19:
nit).
1 1.
Biological
assets
The Company
remains
in a
research
and
devetopment
phase
and
as such
the
plants
and
produce
resutting
from
current
operations
are
not being
devetoped
for sale,
or
for transformation
into
agricultural
produce
or
additionat
biotogicat
assets.
Accordingty,
related
costs
are
recognised
in
profit
or
[oss
rather
than
in the
recognition
of
a
biotogical
iiset
in accordance
with
NZ
IAS
41 Agriculture,
until
such time
as
the
Company
moves
past
the
research
and devetopment
phase.
s
pwc
17

Rua
Bioscience
Limited
Notes
forming
part
of the
interim
financial
statements
For the
six
months
ended
31
December
2O2O
12. Share
Capital
Opening
shares
Shares
issued
Total
pre-share
sPtit.
Effect
of share
split*
Shares
issued**
31 December
2020
(unaudited)
Number
30 June
2020
(audited)
Number
17,003,096
12,990,000
4,01 3,096
17,003,096
17,003,096
83,009,129
40,750,366
N/A
Total
share
capital
140,262,591
17,003,096
*on
15 September
2020,
the
company
completed
a 5.882:1
share
split.
**On
22 October
2020,
the
Company
issued
40,000,000
shares
by
way of
listing
on
the NZX
They also
issued
a
further
250,366
shares
through
the
vesting
of the
ESOP
issue
3.
1 3. Share-based
payments
Correction
of
Prior
Period
error
During
the
second
hatf
of
the 30
June
2020
financia[
reporting
period,
the Company
modified
certain
non-market
vesting
conditions
retated
to
lssue #1
and
lssue
#2
of
its emptoyee
share
option
plans
(ESOP),
suifr
that
a
portion
(55,750)
were
denoted
as
having
"vested
automaticalty".
Accoidingty,
the
unamortised
and
incrementa[
value
associated
with
these
share
optioni
were
recogn-jed
in
fut[, and
disctosed
as
having
vested
but
remaining
unexercised
as at
30
June
2020.
However,
subsequent
review
and
tegat
advice
has
identified
and
confirmed
that
white
certain
non-market
vesting
conditions
were
removed
for these
share
options,
they
were
sti[[
subject
to the
genera[
u"iting
conditions
which
inctuded
a
requirement
of
continued
emptoyment
(servicjcondition)
ov6r
the
originat
vesting
period.
Consequently,
this
expe-nse
shoutd
have
continued
to
be
recognised
ovei
the
remaining
service
period.
This
error
affected
both
the
equity-settted
and
cash-settled
components
of
these
share
options.
s
pwe
18

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For
the
six
months
ended
31
December
2O2O
1 3. Share-based
payments
(continued)
The
impact
of
the error
and
relevant
restated
information
is
presented
below
(i)
lmpact
to statement
of
financial
position
as
at 30
June
2020
Non-current
assets
Deferred
tax
asset
Current
liabilities
Share-based
payment
tiabititY
Non-current
liabi
lities
Share-based
payment
tiabititY
Equity
Accumutated
losses
Share
option
reserve
(ii)
Impact
to share
option
balances
Opening
(1
July
20191
-
Options
issued
-
Options
vested
(As
rePorted)
Adjustment
Options
vested
(Restated)
-
Options
forfeit
Closing
(30
June
2O2Ol
(Restated)
832,033
798,205
(70,492)
58,21
5
(12,277).
(11
1,653)
(13,203)
(124,8561
lssue #1
No.
lssue
#2
No.
2020
As
reported
5
(4,868,2431
336,1
08
Adjustment
s
(33,828)
86,983
(75,800)
lssue
#3
No.
2020
Restated
s
(4,781,260)
260,308
Total
No.
408,000
75,000
42,
(51,000)
564
525,
564
(55,750)
55.750
51000
(4,7501
4,750
(51,000)
(4,7501
(55,750)
357,000
70,250
42,564
469.814
&
pwe
19

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For
the
six
months
ended
31
December
2O2O
1
3.
Share-based
payments
(continued)
Confirmation
of
vestine
conditions
Tranche
2A
(lssue
#1)
Tranche
2A
(lssue
#2)
Tranche
28
(lssue
#1)
Tranche
28
(lssue
#2)
Tranche
2C
(lssue
#1)
Tranche
2C
(lssue
#2)
Tranche
2D
(lssue
#1)
Tranche
2D
(lssue
#2)
During
the
period,
the
previousty
yet
to
be
determined
vesting
conditions
appticabte
to
Tranche
2
of
lssue
#1
(1
,141,108
options),
and
Tranche
2
of
lssue
#2
(164,696
options)
were
confirmed,
resulting
in
four
separate
tranches
(25%
each)
with
unique
vesting
conditions
as
at
3'1
December
2020
Non-market
performance
conditions
retating
to
the
Company
receiving
NZ
Medsafe
"Good
Manufacturing
Practice"
(GMP)
within
a
prescribed
time
frame.
Non-market
performance
conditions
retating
to
the
Company
completing
its
first
commercial
harvest
in
retation
to
sales
agreement
with
a
specified
customer
within
a
prescribed
timeframe.
Non-market
performance
conditions
relating
to
the
Company
achieving
EU
GMP
certification
within
a
prescribed
timeframe.
Non-market
performance
conditions
retating
to
the
Company
achieving
sales
into
the
German
market
within
a
prescribed
timeframe.
lssue
#1
Number
285,277
285,277
285,277
285,277
lssue
#2
Number
41,174
41,174
41,174
41,174
_fu
pwe
Vesting
conditions
Tranche
20

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For
the
six
months
ended
31
December
2O2O
1
3.
Share-based
payments
(continued)
The
fottowing
information
is
relevant
in
the
determination
of
the
fair
value
of
share
options
of
the
new
Tranches,
as
at
the
date
of
vesting
condition
confirmation
Equity
Settled
31
December
2020
50
Snit
?74
Equity
Settled
31
December
2020
Snit
639
cash-settled
31
December
2020
Cash'settled
31
December
20zo
30
June
2020
30
June
2020
12
$nit
.60
30
June
2020
30
June
2020
average
Exercise
price
Weighted
average
remaining
contractual
life
(in
days))
average
price
Exercise
price
Weighted
average
remaining
contractual
life
(in
days))
Snit
458
Snit
274
Snit
458
Snit
823
Snit
639
823
_fr
Pwe
ESOP
lssue
#1:
Tranche
2A-
2D
(30
June
2020:
Tranche
2)
ESOP
lssue
#2:
Tranche
?,A-
28
(30
June
2020:
Tranche
2)
21

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For
the
six
months
ended
31
December
2020
1
3.
Share-based
payments
(continued)
lmpact
of
share
split
On
15
September
2020,
the
Company
compteted
a
5.882:1
share
split,
resutting
in
a
pro-rata
increase
in
the
number
of
share
options.
At
reporting
date,
the
number
of
unvested
options
was
2,410,150.
Remeasurement
of
the
srant-date
fair
value
Tranche
3
of
lssue
#2
The
vesting
conditions
associated
with
Tranche
3
of
lssue
#2
remain
unconfirmed
as
at
reporting
date.
Accordingty,
and
untiI
such
time
as
the
vesting
conditions
are
confirmed,
the
grant-date
fair
value
of
the
options
is
re-estimated.
As
at
reporting
date
the
fair
vatue
of
these
options
was
50.60
(30
June
2020:
S0.36
-
being
the
52.12
previousty
reported,
adjusted
for
the
5.882:1
share
sptit)
The
increase
in
the
estimated
grant-date
fair
value
has
resutted
in
an
additionat
512,043
being
recognised
in
profit
or
[oss
in
the
period.
Remeasurement
of
cash
settled
share-based
pavments
Cash-settled
share-based
payments
are
remeasured
at
reporting
date
As
at
reporting
date
the
fair
value
of
these
options
was
50.60
(30
June
2020:
50.36
-
being
the
52.12
previously
reported,
adjusted
for
the
5.882:1
share
split)
The
expense
recognised
in
profit
or
loss
during
the
period
associated
with
the
increase
in
carrying
vatue
of
cash-settted
share-based
payments
was
5194,970.
_fu
Ftvc
22

Rua
Bioscience
Limited
Notes
forming
part
of
the
interim
financial
statements
For the six
months
ended
31
December
2O2O
14.
Events
after
the
reporting
date
There
have
been
no
material events
subsequent
to 31
December
2020.
-rfu
wc
23

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)



Results for announcement to the market
Name of issuer Rua Bioscience Ltd
Reporting Period 6 months to 31
st
December 2020
Previous Reporting Period 6 months to 31
st
December 2019
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$269 (14%)
Total Revenue $269 (14%)
Net profit/(loss) from
continuing operations
($2,333) (71%)
Total net profit/(loss) ($2,333) (71%)
Interim/Final Dividend
Amount per Quoted Equity
Security
None
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.18 $0.64
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Net tangible asset per share is calculated by dividing net assets
less intangible assets by the total shares on issue at the end of
the period.
Authority for this announcement
Name of person

authorised
to make this announcement
Rob Mitchell
Contact person for this
announcement
Kerry Donovan
Contact phone number +64 (21) 128 7689
Contact email address kerry.donovan@ruabio.com
Date of release through MAP

26/01/2021

Unaudited financial statements accompany this announcement.