AusCann : Appendix 4D and Half-Year Financial Report 31 December 2021

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AusCann Appendix 4D and Half-Year FY2022 Report

Key Highlights

• Successfully completed a 90-day Target Animal Safety Study for DermaCann® in the U.S, confirming the product to be safe and well tolerated in dogs
• Submitted final regulatory data modules for DermaCann® product registration in Australia
• Appointed Intuit Regulatory Ltd to commence New Zealand product registration for DermaCann®
• Advanced DermaCann® commercialisation activities in South Africa and the U.S
• Engaged Knoell Animal Health LLC to advance the CPAT-01 U.S Phase 2 clinical program
• Held a successful Pre-Submission Meeting with the U.S Food and Drug Administration for CPAT-01
• Appointed Ingenu research to complete a strategic review of AusCann's research assets to expand the Company's human pipeline
• Appointed Tod McGrouther as new Chairperson
• Net cash used in operations reduced significantly by 45% to $2,256,936 for the period

28 February 2022 - AusCann Group Holdings Limited (ASX:AC8) ('AusCann' or 'the Company') is pleased to update the market on its progress in the 6 months ended December 31, 2021.

Operating Results and Financial Position

The loss of the consolidated entity for the half year reduced to $3,466,869 (2020: $4,551,228), which included amortisation/depreciation costs of $933,042.

Excluding non-cash costs, the total expenses reduced by 37% to $2,827,269 for the period (2020: $4,506,387). This decrease was due to operational efficiencies and reductions in administration, corporate, and employee expenses following AusCanns acquisition of CannPal Animal Therapeutics Limited.

Rental income of $213,750 (2020: Nil) was received during the half year in respect to the lease of the Company's research and development facility in Wangara, Western Australia to Source Certain International.

Costs associated with research and development were $1,651,994 for the period, accounting for 58% of the Company's total expenses for the half-year. These expenses directly relate to core revenue generating activities for the Company's lead medicinal cannabis programs.

A full review of operations and financial position for the half-year is set out on page 5 of the half year FY2022 report.

ENDS

This ASX announcement was authorised for release by the Board of AusCann.

For more information, please contact:

Layton Mills

Chief Executive Officer [e-mail] [phone]

ABOUT AUSCANN

Registered address: Level 5, 35 Havelock Street, West Perth WA 6005 Mailing address: PO Box 1746, Wangara WA 6947

T: [phone] E: [e-mail]

AusCann Group Holdings Ltd ACN 008 095 207 (ASX:AC8)

For personal use only

ASX RELEASE

AusCann Group Holdings Limited (ASX:AC8) is an Australian-based company focused on the development and commercialisation of cannabinoid-derived therapeutic products to address unmet needs for humans and animals within Australia and internationally. Our key difference is the commitment to rigorous product development, focused on providing reliable, stable and standardised cannabinoid-derived therapeutics products, whilst generating robust safety, quality assurance and efficacy data to support market access in various regulatory environments around the world.

Registered address: Level 5, 35 Havelock Street, West Perth WA 6005 Mailing address: PO Box 1746, Wangara WA 6947

T: [phone] E: [e-mail]

AusCann Group Holdings Ltd ACN 008 095 207 (ASX:AC8)

For personal use only

AusCann Group Holdings Ltd

ABN 72 008 095 207

Appendix 4D and

Half-Year Financial

Report

31 December 2021

For personal use only

AUSCANN GROUP HOLDINGS LTD

ABN 72 008 095 207

APPENDIX 4D AND HALF-YEAR FINANCIAL REPORT

AusCann Group Holdings Limited provides the following information under listing rule 4.2A:

Details of the Reporting Period and the Previous Corresponding Period

• Reporting period - half-year ended 31 December 2021
• Previous corresponding period - half-year ended 31 December 2020

Results for Announcement to the Market

		%		$
Revenues from ordinary activities	Up	256%	to	293,442
Loss from ordinary activities after tax attributable to members	Down	10%	to	4,153,390
Net loss from the period attributable to members	Down	10%	To	4,153,390
Final and interim dividends	N/A
Record date for determining entitlements to dividends	N/A

	Reporting	Previous
	period	corresponding
		period
Net tangible asset backing per ordinary share	5.47 cents	9.53 cents

Details of entities over which control has been gained or lost

There have been no changes in control over entities in the half-year ended 31 December 2021.

Details of dividends or distribution payments

No dividends or distributions are payable.

Details of dividend or distribution reinvestment plans

There is no dividend or distribution reinvestment program in operation.

Details of associates and joint venture entities

N/A

Foreign entities to disclose which accounting standards are used in compiling the report

N/A

Details of any audit dispute or qualification

None

Financial report

This half-yearly reporting information should be read in conjunction with the most recent annual financial report of the Company

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For personal use only

AUSCANN GROUP HOLDINGS LTD

ABN 72 008 095 207

Half-Year Report

for the Period Ended 31 December 2021

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