CPS Capital

CPS Capital rates Cynata Therapeutics Ltd (“CYP”) a Speculative Buy At ~34c


21 May, 2016


CPS Capital CEO, Jason Peterson advised current and potential investors that as a major shareholder of Cynata Therapeutics Ltd (“CYP”), he has recently been meeting management, organising a
marketing strategy for the company & and generally understanding the stem cell market.

Mr Peterson provided the following information to investors:

This company is impressive and has the ability to deliver. The current “negatives” around the stock
are being addressed (these are minor in the whole scheme of things).

Based on this and further to recent information released by the company CYP is currently a
SPECULATIVE BUY.

Looking at the chart- the share price has consolidated in a band for the last nine months or so. A
breakout of this band could potentially rerate the stock to higher levels.

Although high risk, CYP, with what has been alluded to in recent announcements is executed, could
be one to watch.

Most importantly – the downside appears to be limited given the trading range in this “band”
mentioned above.

Cynata Therapeutics Ltd is an Australian stem cell and regenerative medicine company, undertaking
cutting edge research, that has led to the development of an innovative and therapeutic stem cell
platform technology called Cymerus™.


This patented technology is being used for the production of mesenchymal stem cells (MSCs). Stem
cells and MSCs in particular, are proving to be very useful medicines for a number of serious diseases
including stroke, heart disease, lupus, Crohn’s disease, osteoarthritis and diabetes. Globally, the field
of stem cell research is growing at a rapid pace, with hundreds of clinical trials currently underway
using stem cells. The problem that the industry faces, is that it is difficult to obtain sufficient amounts
of MSCs to treat the hundreds of thousands of patients with these diseases. Currently MSCs are
harvested from bone, fat or other tissues from healthy human donors and grown in the lab to make
as much as possible. After growing these stem cells for some time, they age and lose their abilities to
work as medicines. As a result, MSCs produced from traditional methods are costly, difficult to obtain,
and lose efficacy over time.


Cynata have developed the world’s first solution to this problem, which was spun out of the University
of Wisconsin’s leading stem cell research centre. Using their Cymerus™ technology and innovative
production processes, Cynata can produce unlimited commercial scale quantities of MSCs, which
never age and maintain their efficacy. These stem cells can then be used as therapeutic medicines to
treat major diseases.


This is an exciting opportunity as scientists and clinical physicians world-wide seek to find new medical
treatments for various diseases with stem cell therapies. Cynata is at the forefront of stem cell
production, meeting its milestones, the company is now at the human clinical trial stage of proving
the technology. Last week, Cynata also announced its option license agreement with the privatelyheld
German firm apceth GmbH and are looking at other partnership deals internationally with biotech
and pharma companies, that will bring more revenue into Cynata.


Cynata is also featured in this week’s Business News WA as one of the “hottest start-ups and tech
companies” and Cynata has topped Techboard’s list of trending companies this fortnight.


Cynata is uniquely placed to capitalise on the exploding field of stem cell medicine, with the
advantages of unlimited scale-up, low cost of goods and production of high quality product. To find
out more information on Cynata please refer to the website http://cynata.com


Disclosures:

• The writer holds approx. 2.5m shares in CYP.

• CYP has a mandate in place to provide strategic marketing advice to CYP – CPS outsources this fee
100% to a third party.


*Source; Cynata newsletter