Pacific Channel has released its updated internal analysis of...

Pacific Channel has released its updated internal analysis of Living Cell Technologies (ASX:LCT).

LCT is an Australasian biotechnology company that is focused on developing a cell-based therapy for Parkinson’s Disease. The company announced on 23 July 2019 the outcome of its analysis work of the 2-year data, which showed a successful outcome of the Phase IIb trial. On 9 September 2019 LCT provided a newsletter to shareholders which noted that MedSafe has not accepted LCT’s filing for conditional approval which means LCT will be required to complete a Phase III trial in the normal way prior to commercialisation.

It is Pacific Channel’s view that NTCELL trial data has not been adequately communicated to LCT shareholders. Pacific Channel is also concerned that LCT has not produced a clear plan to scale up production and commercialise NTCELL. Additionally, LCT has not communicated a clear plan to seek further funding to pay for subsequent trials, nor a vision to drive growth and ultimately increase shareholder value.

Pacific Channel has released this report to provide the market with its views on the current status and potential of LCT and outline upcoming challenges that have not in our view been fully addressed by LCT’s board.

Pacific Channel is working as part of a group of interested LCT shareholders to recommend the need to appoint at least one new director with experience in biotechnology commercialisation, including capital markets and investor relations experience, who would be well regarded by specialist industry investors and investment banks.

To help inform existing LCT shareholders of the need for such an appointment, especially shareholders for who we are not currently in communication, we have released this report.

In consultation with other shareholders, we have asked LCT’s board to put resolutions to the AGM to remove 3 existing directors and appoint 2 news directors at its AGM on 7 November.

The form of the Statement to Members requisitioning these resolutions be put to the AGM can be found by accessing the following link. Section 249P Statement to Members

Please contact us at [email protected] if you are a shareholder and wish to have input in this action.

This report is dated 10th September 2019 and was produced to capture Pacific Channel’s current internal assessment of LCT, which on this occasion it has chosen to publish and can be found by accessing the following link. Living Cell Technologies Limited White Paper 10-9-19

Pacific Channel has not received any remuneration or promise of remuneration by any party in consideration for producing and releasing this report. This document is not available to those in the US. By accessing the document, you acknowledge and confirm that you are not accessing this from the US

Disclaimer

IMPORTANT: Youmust read the following notices before reading or making any use of this report or any information contained in this report. By continuing to read, use or otherwise act on this report, you agree to be bound by the following terms andconditions, including any modifications to them, and make or give the acknowledgments,representations or warranties (as applicable).

Pacific Channelis a shareholder of Living Cell Technologies Limited (LCT) and NZenoLimitedthrough a related entity.

This reportis dated 10^th September 2019 and wasproduced to capture PacificChannel’s current internal assessment of LCT, whichon this occasion it has chosen to publish. Pacific Channel has not received anyremuneration or promise of remuneration by any party in consideration forproducing and releasing this report.

This report is not a prospectus or product disclosure statement or disclosure document forthe purposes of the Corporations Act 2001 (Cth) (Corporations Act)and has notbeen lodged with the Australian Securities and InvestmentsCommission or the ASX.

This report is not and should not be considered, and does not contain or purport to contain,an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the LCT (Securities) nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. This report does not constitute an advertisement for an offer or proposed offerof Securities. Neither this report nor is intended to induce or solicit any person to engage in, or refrain from engaging in, any transaction relating toLCT. An investor must not act on the basis of any matter contained in thisreport but must make its own assessment of LCT and conduct its own investigation and analysis.

Effect of rounding

A number offigures, amounts, percentages, estimates, and calculations of value in thisreport are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this report.

No liability

This report does not, and does not attempt to, contain all material or relevant information about LCT or any of its subsidiaries or businesses.

PacificChannelhas prepared this report based on information available to it at the time ofpreparation, from sources, believed to be reliable and subject to the qualifications in this report but has not independently verified all of the information given in this report. To the maximum extent permitted by law, eachof Pacific Channel, its officers, directors, employees, and advisers (each a Limited Party and together, the Limited Parties) accept no responsibility or liability for the contents of this report and make no recommendation or warranties. No representation or warranty, express or implied, is made asto the fairness, accuracy, adequacy, validity, correctness or completeness ofthe information, opinions, and conclusions contained in this report. To themaximum extent permitted by law, none of the Limited Parties accept anyresponsibility or liability including, without limitation, any liability arisingfrom fault or negligence on the part of any person, for any loss whatsoeverarising from the use of the information in this report or its contents orotherwise arising in connection with it.

To themaximum extent permitted by law, you agree to release and indemnify each LimitedParty from and against all claims, actions, damages, remedies or other matters,whether in tort, contract or under law or otherwise, arising from or which mayarise from or in connection with the provision of, or any purported reliance on,this report and you covenant that no claim or allegations will be made againstany of the Limited Parties in relation to this report.

PacificChannelhas no obligation to notify you of opinion changes or if it becomesaware of anyinaccuracy in or omission from this report. All opinions andprojections expressedin this report are given as of the date of thisreport and are subject to changewithout notice.

This documentis for informational purposes only and should not be construed as investment,legal, tax or other advice. Investors should not rely solely on thisinformation. There can be no assurance that LCT’s objectives will be met or thatlosses will not be incurred. Past performance is no guarantee of future results.