Living Cell Technologies : Appendix 4C Quarterly Cash Flow Report 31 March 2017

Appendix 4C Quarterly Cash Flow Report 31 March 2017

$8,623,788 in the previous quarter. The decrease is primarily due to ongoing operating payments.

Net operating cash flow in the quarter was $(392,294) compared to $(1,645,043) in the previous quarter. Receipts from grants were $286,512 (previous quarter $234,711) and a $128,691 R&D loss tax credit was received during the quarter. Operating payments were $867,782 compared to

$1,868,706 in the previous quarter. The decrease is mainly due to no payments being made for the treatment of group 3 in the Phase IIb Parkinson's clinical trial during the quarter.

Investing activity payments are for replacement plant and equipment.

Chief executive Dr Ken Taylor said that the company is focused on completing the treatment of group 3 in the Phase IIb clinical trial of NTCELL® for Parkinson's disease and will announce when this occurs. The Phase IIb trial aims to confirm the most effective dose of NTCELL, define any placebo component of the response and further identify the initial target Parkinson's disease patient sub group. If the trial is successful, the company plans to apply for provisional consent in Q4 2017 with a view to treating paying patients in New Zealand in 2018.

Living Cell Technologies Limited (LCT) is an Australasian biotechnology company improving the wellbeing of people with serious diseases worldwide by discovering, developing and commercialising regenerative treatments which restore function using naturally occurring cells.

LCT's lead product, NTCELL®, is an alginate coated capsule containing clusters of neonatal porcine choroid plexus cells. After implantation NTCELL functions as a biological factory, producing factors to promote new central nervous system growth and repair disease-induced nerve degeneration.

The Phase I/IIa NTCELL clinical trial in New Zealand for the treatment of Parkinson's disease met the primary endpoint of safety and reversed progression of the disease two years after implant. Results from this trial were used to design a larger Phase IIb trial to confirm the most effective dose of NTCELL, define any placebo component of the response and further identify the initial target Parkinson's disease patient sub group. This trial commenced in March 2016. If the trial is successful, the company will apply in late 2017 for provisional consent to treat paying patients in New Zealand and launch NTCELL as the first disease modifying treatment for Parkinson's disease.

In addition to Parkinson's disease, NTCELL has the potential to be used in a number of other central nervous system indications, including Huntington's, Alzheimer's and motor neurone diseases including amyotrophic lateral sclerosis (ALS).

LCT's proprietary encapsulation technology, IMMUPEL™, allows cell therapies to be used without the need for co-treatment with drugs that suppress the immune system.

LCT is listed on the Australian (ASX: LCT) and US (OTCQX: LVCLY) stock exchanges. The company is incorporated in Australia, with its operations based in New Zealand.

For more information, visit www.lctglobal.com or follow @lctglobal on Twitter.

This document may contain certain forward-looking statements, relating to LCT's business, which can be identified by the use of forward-looking terminology such as "promising," "plans," "anticipated," "will," "project," "believe," "forecast," "expected," "estimated," "targeting," "aiming," "set to," "potential," "seeking to," "goal," "could provide," "intends," "is being developed," "could be," "on track," or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no assurance that any existing or future regulatory filings will satisfy the FDA's and other health authorities' requirements regarding any one or more product candidates nor can there be any assurance that such product candidates will be approved by any health authorities for sale in any market or that they will reach any particular level of sales. In particular, management's expectations regarding the approval and commercialisation of the product candidates could be affected by, among other things, unexpected clinical trial results, including additional analysis of existing clinical data, and new clinical data; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property protection; competition in general; government, industry, and general public pricing pressures; and additional factors that involve significant risks and uncertainties about our products, product candidates, financial results and business prospects. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. LCT is providing this information and does not assume any obligation to update any forward-looking statements contained in this document as a result of new information, future events or developments or otherwise.

+Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

LIVING CELL TECHNOLOGIES LIMITED

ABN Quarter ended ("current quarter")

14 104 028 042

31 March 2017

1. Cash flows from investing activities

2. Payments to acquire:

3. property, plant and equipment

   (4,511) (242,780)

4. businesses (see item 10) - -

5. investments - -

6. Consolidated statement of cash flows	Current quarter $A	Year to date (6 months) $A
   (d) intellectual property	-	-
   (e) other non-current assets	-	-
   2.2 Proceeds from disposal of:
   (a) property, plant and equipment	-	-
   (b) businesses (see item 10)	-	-
   (c) investments	-	-
   (d) intellectual property	-	-
   (e) other non-current assets	-	-
   2.3 Cash flows from loans to other entities	-	-
   2.4 Dividends received (see note 3)	-	-
   2.5 Other (provide details if material)	-	-
   2.6 Net cash from / (used in) investing	(4,511)	(242,780)
   activities

7. Cash flows from financing activities

8. Proceeds from issues of shares

9. Proceeds from issue of convertible notes

10. Proceeds from exercise of share options

11. Transaction costs related to issues of shares, convertible notes or options

12. Proceeds from borrowings

13. Repayment of borrowings

14. Transaction costs related to loans and borrowings

15. Dividends paid

16. Other (provide details if material)

17. 3.10 Net cash from / (used in) financing activities

-

-

-

-

-

-

-

-

-

6,300,000

-

- (378,478)

-

-

-

-

-

-

5,921,522

4.	Net increase / (decrease) in cash and cash equivalents for the period
4.1	Cash and cash equivalents at beginning of quarter/year to date	8,623,788	5,301,999
4.2	Net cash from / (used in) operating activities (item 1.9 above)	(392,294)	(2,743,955)
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(4,511)	(242,780)
4.4	Net cash from / (used in) financing activities (item 3.10 above)	-	5,921,522

Consolidated statement of cash flows	Current quarter $A	Year to date (6 months) $A
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	(100,093)	(109,896)
	8,126,890	8,126,890

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A	Previous quarter $A
5.1 Bank balances	982,041	1,376,199
5.2 Call deposits	7,144,849	7,247,589
5.3 Bank overdrafts	-	-
5.4 Other (provide details)	-	-
5.5 Cash and cash equivalents at end of	8,126,890	8,623,788
quarter (should equal item 4.6 above)

Current quarter $A

67,500

-

1. Payments to directors of the entity and their associates

2. Aggregate amount of payments to these parties included in item 1.2

3. Aggregate amount of cash flow from loans to these parties included in item 2.3

4. Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

   Current quarter $A

   -

   -

5. Payments to related entities of the entity and their associates

6. Aggregate amount of payments to these parties included in item 1.2

7. Aggregate amount of cash flow from loans to these parties included in item 2.3

8. Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

   Total facility amount at quarter end $A	Amount drawn at quarter end $A
   -	-
   -	-
   -	-

9. Financing facilities available Add notes as necessary for an understanding of the position

10. Loan facilities

11. Credit standby arrangements

12. Other (please specify)

13. Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

14. 9. Estimated cash outflows for next quarter	$A
    9.1 Research and development	(795,309)
    9.2 Product manufacturing and operating costs	-
    9.3 Advertising and marketing	(16,500)
    9.4 Leased assets	(49,287)
    9.5 Staff costs	(241,886)
    9.6 Administration and corporate costs	(251,631)
    9.7 Other (provide details if material) Grant	406,313
    9.8 Total estimated cash outflows	(948,277)

    10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
    10.1 Name of entity	-	-
    10.2 Place of incorporation or registration	-	-
    10.3 Consideration for acquisition or disposal	-	-
    10.4 Total net assets	-	-
    10.5 Nature of business	-	-

    Compliance statement

15. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

16. This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 26 April 2017

(Company secretary)

Print name: Mark Licciardo

Notes

1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.