Ann: Response to ASX Appendix 4C Query-IVX.AX, page-2

As R&D has accounted for the main operating cash outflow for the Company, operating outflows continue to be reduced from earlier periods reflecting reduced activity following the completion of major R&D program activity and all R&D milestones, including the March 2016 meeting with the US Food & Drug Administration (FDA) regarding the smoking cessation program for INV102 (nadolol) following the successful completion of the phase II clinical trial in late 2015.
The Company is now focussed on business development, and the partnering (via sale or out-licence) of one or all of its assets. As such, and as noted in the March Appendix 4C, the company has reduced headcount to align resourcing with the requirements of forward activities, and to further significantly reduce burn rate in the coming quarters.

2. Has the Company taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

The Company does not have plans to raise further cash at this time. Subsequent to lodging the March Appendix 4C, the Company received a refund from the Australian Tax Office on taxes previously paid. Further, the Company will lodge and expects to receive an R&D tax cash rebate during the September quarter against local and overseas R&D activities conducted in the 2016 financial year. The Company believes that these cash inflows, combined with cash on hand and reduced operating cash outflows, will see the Company continue operations for more than two quarters without the need to raise further capital. Further, the Company is now focused on the realisation of value of its assets via a commercial transaction following the successful completion of its major R&D milestones.