EX-99.1 2 d151307dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

ABN 90 009 237 889                                           

Appendix 4D

Interim Financial Report

For the Half-Year Ended

31 December 2015

(previous corresponding period: half-year ended 31 December 2014)

To be read in conjunction with the 30 June 2015 Annual Report.

In compliance with Listing Rule 4.2A


LOGO

ABN 90 009 237 889                                             

ASX/Media Release (ASX: PRR)

29 February 2016

Appendix 4D Interim Financial Report

Results for Announcement to the Market

Current Reporting Period – Half-year Ended 31 December 2015

Previous Reporting Period – Half-year Ended 31 December 2014

 

Revenues

   Unchanged      —          to         —     

Loss after tax attributable to members

   Up      775.19     to       ($ 56,021,865

Net loss for the period attributable to members

   Up      775.19     to       ($ 56,021,865
Dividends (Distribution)    Amount per Security    

Franked Amount

per Security

 

Final dividend

        n/a           n/a   

Previous corresponding period

        n/a           n/a   

Record date for determining entitlements to the dividend, (in the case of a trust, distribution)

             n/a   

 

Net Tangible Assets per Share (cents)

  

As at 31 December 2015

     0.91   

As at 31 December 2014

     (0.08

Explanation of the above information:

The loss after tax attributable to members after removing the effect of the non-cash Share Based Payment to a strategic investor (Ridgeback Capital Investments), is $8,553,794 for the current reporting period, which is a 33.63% increase from the previous reporting period. The Company received financing from Ridgeback which has been accounted for as a share-based payment, as Ridgeback is a strategic investor with extensive expertise in the field of cancer immunotherapies (refer Note 9). A non-cash share-based payment of $47,468,071 has been expensed during the current reporting period representing the fair value of the convertible note and warrants at the time of the EGM approval of the investment from Ridgeback.

For other details of the current year results, refer to the Directors’ Report - Review of Operations.


Contents

 

 

Directors’ Report

     2   

Auditor’s Independence Declaration

     6   

Consolidated Statement of Comprehensive Income

     7   

Consolidated Balance Sheet

     8   

Consolidated Statement of Changes in Equity

     9   

Consolidated Statement of Cash Flows

     10   

Notes to the Consolidated Financial Statements

     11   

Directors’ Declaration

     23   

Independent Auditor’s Review Report to the Members

     24   

 

Prima BioMed Ltd- Appendix 4D    Page 1


Directors’ Report

 

Your directors are pleased to provide the following half-year report on Prima BioMed Ltd and its subsidiaries (referred to hereafter as the Group or Prima or the Company) for the half-year ended 31 December 2015.

Directors

The following persons were directors of Prima during the whole of the half-year and up to the date of this report unless otherwise stated:

Ms Lucy Turnbull, AO (Non-Executive Chairman)

Mr Marc Voigt (Executive Director & Chief Executive Officer)

Mr Albert Wong (Non-Executive Deputy Chairman)

Dr Russell Howard (Non-Executive Director)

Mr Pete Meyers (Non-Executive Director)

Principal Activities

Prima BioMed is a globally active biotechnology company positioned to become a leader in the development of immunotherapeutic products for the treatment of cancer. Prima BioMed is dedicated to leveraging its technology and expertise to bring innovative treatment options to market for patients and to maximise value to shareholders. Prima’s current lead product is IMP321, based on the LAG-3 immune control mechanism which plays a vital role in the regulation of the T cell immune response. IMP321, which is a soluble LAG-3Ig fusion protein, is an antigen presenting cell (APC) activator boosting T cell responses for cancer chemo-immunotherapy and in other combinations which has completed early Phase II trials. A number of additional LAG-3 products including antibodies for immune response modulation in autoimmunity and cancer are being developed by large pharmaceutical partners. Prima BioMed is listed on the Australian Stock Exchange and on the NASDAQ in the US.

Review of Operations

Key highlights and significant events of the reporting period included:

 

    Completion of a fund raising of approximately $28.5m

 

    Receipt of Scientific Advice from European Medicines Agency (EMA)

 

    Initiation of two clinical trials with IMP321

 

    Achievement of important milestones with our partnered products IMP731 (GSK) and IMP701 (Novartis)

IMP321 development

IMP321 is a cancer immunotherapy agent currently in mid-stage clinical development with Prima BioMed, where it is the Company’s lead compound. Immunotherapy is a process whereby a disease such as cancer is treated either by activating or suppressing components of the immune system to generate a response. LAG-3, or Lymphocyte Activation Gene 3, is able to stimulate and in other cases inhibit an immune response, via involvement in a number of immune pathways. IMP321 is a soluble LAG-3Ig fusion protein which works by binding to MHC class II molecules on APCs such as dendritic cells to activate them. The APCs are important for presenting cancer antigens to T cells and activating them to destroy cancer cells. IMP321 is a first-in-class APC activator.

 

Prima BioMed Ltd- Appendix 4D    Page 2


Directors’ Report (continued)

 

 

A Phase IIb study, known as AIPAC (Active Immunotherapy PAClitaxel) has been initiated in Europe. AIPAC is a multi-national, randomised, double-blind, placebo-controlled Phase IIb study of IMP321 in metastatic breast cancer in which we aim to enroll 211 patients. This trial has now commenced in Europe with sites in Belgium and the Netherlands having been initiated. The AIPAC trial will take approximately 3 years to complete, randomising patients 1:1, after the single-arm, safety run in phase, to either standard-of-care paclitaxel plus placebo or paclitaxel plus IMP321. Patients will be dosed for six months as per the Phase I dosing regimen, after which the responding or stable patients will be maintained for another year with monthly IMP321 injections. The study has been powered to demonstrate a progression free survival (PFS) advantage for the treatment group. Throughout the study, an independent data monitoring committee will review patient safety, survival rates and demographics at regular intervals.

An Australian pilot Phase I trial called TACTI-mel (Two ACTive Immunotherapeutics in melanoma) was initiated in H1 calendar year 2016. Australia has one of the highest per capita incidence of melanoma in the world. TACTI-mel will recruit 24 patients with Stage III/IV metastatic melanoma being treated with an approved PD-1 checkpoint inhibitor and adds IMP321 to the dosing regimen. Patients will receive ascending subcutaneous doses of IMP321 up to 30mg per injection fortnightly for 13 injections. The study will mainly evaluate the safety, pharmacokinetics, pharmacodynamics and anti-tumour activity of IMP321 at the various doses as well as the nature of the immune response in the combination. The primary endpoint of the study will be safety. This first-in-man study will combine IMP321 as an immune activator, together with a PD-1 checkpoint inhibitor. Other combination trials in progress at the moment are predominantly focusing on the combination of 2 inhibitors that work to remove the brakes on the immune system. Prima is at the forefront of a potential new frontier in combining checkpoint therapies with different modes of action (“releasing the brake” and “pushing the gas”) and we have filed a patent in 2015 to support this new application of IMP321.

Partnered programs:

Calendar year 2015 has been exciting for both Prima and our partners in terms of the clinical development of our LAG-3 products. A single digit million dollar financial milestone payment was received from GlaxoSmithKline after commencement of their Phase I trials with GSK2831781 (derived from IMP731) in January 2015. By all accounts this trial seems to be progressing well and at an investor presentation day in November 2015, GSK announced its intention to progress these trials into phase II in 2016; an exciting validation of the promise of this treatment modality. In August 2015, we announced Novartis had treated their first patient with LAG-525, their humanised version of Immutep’s IMP701 antibody for the treatment of cancer, triggering an undisclosed, modest milestone payment.

Our collaboration with Yamaguchi University and NEC Corporation is also progressing well. The signing of a second material transfer agreement or MTA was concluded at the end of calendar year 2015, under which we will provide clinical grade IMP321 to Yamaguchi University for a fee. They will test IMP321 as an APC activator in a cancer vaccine trial, together with their proprietary cancer peptides, in an investigator led clinical research study. The Yamaguchi/Prima collaboration was conceived based on evidence that IMP321 at low doses can be used as a T cell adjuvant for cancer vaccines because of IMP321’s ability to activate dendritic cells.

Prima is well positioned as an industry leader in the LAG-3 space. We own the original patents protecting the LAG-3 gene and antibodies; we have the founder and leading expert of LAG-3, Dr Frédéric Triebel; we have multiple products with different modes of action in development with multiple partners; we have completed 10 clinical trials to date and are starting two new clinical trials; and we have continuous research and development ongoing to identify new technologies in this exciting space. Upcoming data from large pharmaceutical companies in the LAG-3 space will add value to technologies targeting the LAG-3 checkpoint.

 

Prima BioMed Ltd- Appendix 4D    Page 3


Directors’ Report (continued)

 

 

Financial

Prima BioMed announced on 14 May 2015 that Ridgeback Capital Investments, a US-based specialist healthcare investor, would be investing $15m in Prima. Ridgeback took an immediate placement of approximately 72 million Prima shares at 1.73 cents per share, worth $1.25m, and committed to investing the remainder of its $15m commitment via 3% convertible notes which convert, at Ridgeback’s election, into Prima ordinary shares at 2.00 cents per share. Shareholders approved this investment after the reporting period at an Extraordinary General Meeting on 31 July 2015, resulting in Prima receiving approximately $14m. Concurrent with the Ridgeback investment Prima BioMed announced a Share Purchase Plan at 5 cents per share in July 2015 that raised an additional $10m.

The fair value of the convertible note and warrants as at the date of shareholder approval at the EGM was $61.2m. An amount of $47.5m has been recognised in the statement of comprehensive income as a share-based payment, reflecting both the increase in the value of the convertible note and the fair value of the warrants issued.

In addition, Prima BioMed placed approximately $3.55m with two institutional investors during the half-year. The capital raising from Ridgeback, the Share Purchase Plan and funds from the two institutional investors resulted in an increase in cash and term deposits to $25.5m in the first half of financial year 2016.

The Company has benefited from cash grants of $420k from the Australian R&D tax incentive program and grants from the Saxony Development Bank in Germany. The reduction in the grants received during the period compared to last year is commensurate with the reduction in the R&D expenditure in Australia during the same period last year. The Saxony Development Bank grant expired in December 2014; however, the last funds were received in October 2015.

Our R&D expenditure arises from contracts with Contract Research Organisations (CROs), Contract Manufacturing Organisations (CMOs) and clinical investigators. As a result of ceasing the recruitment and consolidation of the CVac clinical development programs, Prima was able to significantly reduce R&D expenditure whilst further developing R&D in relation to assets acquired in the Immutep acquisition.

Performance Rights were granted as Long Term Incentives (“LTIs”) and Short Term Incentives (“STIs”) used under the Executive Incentive Plan as follows:

 

    4,347,827 of Performance rights are granted as LTIs subject to meeting vesting conditions of total shareholder return criteria being achieved and continued employment until 1 October 2017 for 75% of these LTIs and until 1 October 2018 for 25% of these LTIs.

 

    945,180 of Performance rights are granted as STIs with vesting conditional on meeting various individually set KPIs and continued employment until 1 October 2016.

 

    1,538,462 of Performance rights are granted as STIs with vesting conditional on meeting various individually set KPIs and continued employment until 1 December 2016.

In addition 42,000,000 Performance Rights were granted under the Executive Incentive Plan including 20 million for the CEO based on shareholder approval at the Extraordinary General Meeting held on 31 July 2015.

On vesting of either LTIs or STIs, shares will be issued for no consideration. The expense recorded for the first half amounted to $1.26m.

Our total corporate and administrative expenditure increased in the first half of 2015 to $4.2m also as a result of the share-based payments recognised under the Executive Incentive Plan.

 

Prima BioMed Ltd- Appendix 4D    Page 4


Directors’ Report (continued)

 

 

Auditor’s independence declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 6. This report is made in accordance with a resolution of directors.

 

LOGO

Mr Marc Voigt

CEO and Executive Director

Sydney

Dated: 29th Day of February 2016

 

Prima BioMed Ltd- Appendix 4D    Page 5


LOGO

Auditor’s Independence Declaration

As lead auditor for the review of Prima BioMed Ltd for the half-year ended 31 December 2015, I declare that to the best of my knowledge and belief, there have been:

 

a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

 

b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Prima BioMed Ltd and the entities it controlled during the period.

 

LOGO

Rod Dring

   Sydney
Partner    29 February 2016
PricewaterhouseCoopers   

PricewaterhouseCoopers, ABN 52 780 433 757

Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171

T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

 

Prima BioMed Ltd- Appendix 4D    Page 6


Consolidated Statement of Comprehensive Income

For the Half Year Ended 31 December 2015

 

 

     Note      31 December 2015     31 December 2014  
            $     $  

OTHER INCOME

       

Miscellaneous income

        376,930        —     

Grant income

        887,727        1,169,929   

Gain on foreign exchange

        —          624,531   

Interest income

        164,657        200,228   
     

 

 

   

 

 

 

Total other income

        1,429,314        1,994,688   

EXPENSES

       

Depreciation and amortisation

        (1,026,367     (216,651

Research and development and intellectual property

        (4,011,362     (4,892,399

Corporate administrative expenses

        (4,180,666     (3,028,026

Share Based Payment to strategic investor

     9         (47,468,071     —     

Loss on foreign exchange

        (497,711     —     

Finance cost

        (8,199     (204,571

Changes in fair value of comparability milestone

        (542,075     —     

Net Change in fair value of financial liability

        (278,904     (54,127
     

 

 

   

 

 

 

Loss before income tax

        (56,584,041     (6,401,086

Income tax expense

        562,176        —     
     

 

 

   

 

 

 

Loss for the half-year

        (56,021,865     (6,401,086
     

 

 

   

 

 

 

Other Comprehensive Income

       

Exchange differences on the translation of foreign operations

        269,013        164,790   
     

 

 

   

 

 

 

Other comprehensive income for the half-year, net of income tax

        269,013        164,790   
     

 

 

   

 

 

 

Total comprehensive loss for the half-year

        (55,752,852     (6,236,296
     

 

 

   

 

 

 

Loss is attributable to:

Owners of Prima BioMed Ltd

        (56,021,865     (6,401,086
     

 

 

   

 

 

 

Total comprehensive loss is attributable to:

Owners of Prima BioMed Ltd

        (55,752,852     (6,236,296
     

 

 

   

 

 

 

Loss per share for loss attributable to the ordinary equity holders of the company:

       

Basic and diluted loss per share (cents)

        (2.86     (0.51

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

 

Prima BioMed Ltd- Appendix 4D    Page 7


Consolidated Balance Sheet

As at 31 December 2015

 

 

     Note      31 December 2015     30 June 2015  
            $     $  

ASSETS

       

Current assets

       

Cash and cash equivalents

        25,483,419        6,759,615   

Current receivables

     4         228,511        315,453   

Other assets

     7         644,522        948,003   
     

 

 

   

 

 

 

Total current assets

        26,356,452        8,023,071   

Non-current assets

       

Plant and equipment

     5         115,562        297,957   

Intangible assets

     6         21,774,380        22,662,417   
     

 

 

   

 

 

 

Total non-current assets

        21,889,942        22,960,374   
     

 

 

   

 

 

 

Total assets

        48,246,394        30,983,445   

LIABILITIES

       

Current liabilities

       

Trade and other payables

        1,591,436        2,770,049   

Borrowings

     8         —          1,508,473   

Current tax payable

        21,903        20,837   

Employee benefits

        64,810        80,304   
     

 

 

   

 

 

 

Total current liabilities

        1,678,149        4,379,663   

Non-current liabilities

       

Financial liability

     9         4,698,435        —     

Deferred tax liability

        1,313,024        1,878,333   

Employee benefits

        37,630        35,706   
     

 

 

   

 

 

 

Total non-current liabilities

        6,049,089        1,914,039   
     

 

 

   

 

 

 

Total liabilities

        7,727,238        6,293,702   
     

 

 

   

 

 

 

Net assets

        40,519,156        24,689,743   
     

 

 

   

 

 

 

EQUITY

       

Issued capital

     10         194,376,075        179,878,436   

Reserves

        62,621,368        5,267,729   

Accumulated losses

        (216,478,287     (160,456,422
     

 

 

   

 

 

 

Equity attributable to the owners of Prima BioMed Ltd

        40,519,156        24,689,743   
     

 

 

   

 

 

 

Total equity

        40,519,156        24,689,743   
     

 

 

   

 

 

 

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

 

Prima BioMed Ltd- Appendix 4D    Page 8


Consolidated Statement of Changes in Equity

For the Half Year Ended 31 December 2015

 

 

    

Issued

Capital

     Reserves      Accumulated
Losses
    Total  
     $      $      $     $  

Balance at 1 July 2014

     149,014,372         1,882,674         (128,304,726     22,592,320   

Loss for the half-year

     —           —           (6,401,086     (6,401,086

Other comprehensive income

     —           164,790         —          164,790   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total comprehensive income for the half-year

     —           164,790         (6,401,086     (6,236,296
  

 

 

    

 

 

    

 

 

   

 

 

 

Transactions with owners in their capacity as owners:

          

Contribution of equity, net of transaction cost

     4,121,675         —           —          4,121,675   

Share based payment

     —           2,278,022         —          2,278,022   

Employee share based payment

     —           214,740         —          214,740   
  

 

 

    

 

 

    

 

 

   

 

 

 

Balance at 31 December 2014

     153,136,047         4,540,226         (134,705,812     22,970,461   
  

 

 

    

 

 

    

 

 

   

 

 

 

Balance at 1 July 2015

     179,878,436         5,267,729         (160,456,422     24,689,743   

Loss for the half-year

     —           —           (56,021,865     (56,021,865

Other comprehensive income

     —           269,013         —          269,013   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total comprehensive income for the half-year

     —           269,013         (56,021,865     (55,752,852
  

 

 

    

 

 

    

 

 

   

 

 

 

Transactions with owners in their capacity as owners:

          

Contribution of equity, net of transaction cost

     13,479,739         —           —          13,479,739   

Issue of convertible notes

     —           9,331,297         —          9,331,297   

Share based payment

     —           42,527         —          42,527   

Share based payment to strategic investor

     —           47,468,071         —          47,468,071   

Employee share based payment

     1,017,900         242,731         —          1,260,631   
  

 

 

    

 

 

    

 

 

   

 

 

 

Balance at 31 December 2015

     194,376,075         62,621,368         (216,478,287     40,519,156   
  

 

 

    

 

 

    

 

 

   

 

 

 

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

 

Prima BioMed Ltd- Appendix 4D    Page 9


Consolidated Statement of Cash Flows

For the Half Year Ended 31 December 2015

 

 

     31 December 2015     31 December 2014  
     $     $  

CASH FLOWS RELATED TO OPERATING ACTIVITIES

    

Payments to suppliers and employees (inclusive of Goods and Service Tax)

     (8,095,889     (7,067,987

Interest received

     164,657        344,186   

Miscellaneous income

     376,929        —     

Transaction costs relating to the acquisition of subsidiary

     —          (347,473

Tax paid

     (2,066     —     

Grant income

     887,727        392,393   
  

 

 

   

 

 

 

NET CASH (OUTFLOWS) FROM OPERATING ACTIVITIES

     (6,668,642     (6,678,881
  

 

 

   

 

 

 

CASH FLOWS RELATED TO INVESTING ACTIVITIES

    

Payments for plant and equipment

     (6,436     (46,848

Proceeds from disposal of plant and equipment

     64,105        —     

Reclassification of term deposits as cash and cash equivalents

     —          1,300,000   

Funds from maturity of term deposits

     —          7,700,000   

Payment for acquisition of subsidiary, net of cash acquired

     —          (15,769,617
  

 

 

   

 

 

 

NET CASH (OUTFLOWS) / INFLOWS IN INVESTING ACTIVITIES

     57,669        (6,816,465
  

 

 

   

 

 

 

CASH FLOWS RELATED TO FINANCING ACTIVITIES

    

Proceeds from borrowings

     —          3,290,988   

Repayment of borrowings

     (1,508,473     —     

Proceeds from issue of convertible notes

     13,750,828        —     

Proceeds from issues of shares and options

     13,761,076        1,043,838   

Share issue transaction costs

     (281,336     (63,098
  

 

 

   

 

 

 

NET CASH INFLOWS FROM FINANCING ACTIVITIES

     25,722,095        4,271,728   
  

 

 

   

 

 

 

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS

     19,111,122        (9,223,618

Effect on exchange rate on cash and cash equivalent

     (387,318     755,643   

Cash and cash equivalents at the beginning of the half year

     6,759,615        14,200,042   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS AT THE END OF THE HALF YEAR

     25,483,419        5,732,067   
  

 

 

   

 

 

 

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

 

Prima BioMed Ltd- Appendix 4D    Page 10


Notes to the Financial Statements

 

1. Summary of Significant Accounting Policies

a) Basis of Preparation

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standard AASB 134: Interim Financial Reporting, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

The half-year report does not include full disclosures of the type normally included in an annual report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of Prima as the annual report.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2015 and any public announcements made by Prima BioMed Ltd and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

International Financial Reporting Standards form the basis of Australian Accounting Standards adopted by the AASB. The half-year financial report complies with International Accounting Standards (“IAS”) 34 Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”).

The accounting policies adopted are consistent with those of the previous financial year and corresponding half-year reporting period.

2. Dividends

The company resolved not to declare any dividends in the half-year ended 31 December 2015.

3. Segment Reporting

Identification of reportable operating segments

Subsequent to the acquisition of Immutep S.A., internal reports which are reviewed and used by Management and the Board of Directors (who are identified as the Chief Operating Decision Makers (‘CODM’)) form only one segment, being Cancer Immunotherapy. This segment reporting is used to assess performance and in determining the allocation of resources. There is no aggregation of operating segments. The CODM reviews earnings/loss before tax. Prior year segment reporting information has been restated to reflect the form in which the CODM reviews financial information.

Types of products and services

The principal products and services of each of these operating segments are as follows:

 

    Cancer Immunotherapy

In the current reporting period, the Company has focused on cancer immunotherapy research.

 

Prima BioMed Ltd- Appendix 4D    Page 11


Notes to the Financial Statements (continued)

 

 

3. Segment Reporting (continued)

 

Operating segment information

 

31 December 2015

   Cancer
Immunotherapy
$
     Unallocated
$
     Consolidated
$
 

Other Income

        

Grant income

     887,727         —           887,727   

Interest income

     —           164,657         164,657   

Miscellaneous income

     376,930         —           376,930   
  

 

 

    

 

 

    

 

 

 

Total other income

     1,264,657         164,657         1,429,314   
  

 

 

    

 

 

    

 

 

 

Result

        

Segment result

     (56,584,041      —           (56,584,041
  

 

 

    

 

 

    

 

 

 

Loss before income tax expense

     (56,584,041      —           (56,584,041
  

 

 

    

 

 

    

 

 

 

Income tax expense

           562,176   
        

 

 

 

Loss after income tax expense

           (56,021,865
        

 

 

 

 

31 December 2014

   Cancer
Immunotherapy
$
     Unallocated
$
     Consolidated
$
 

Other Income

        

Grant income

     1,169,929         —           1,169,929   

Gain on foreign exchange

     —           624,531         624,531   

Interest income

     —           200,228         200,228   
  

 

 

    

 

 

    

 

 

 

Total other income

     1,169,929         824,759         1,994,688   
  

 

 

    

 

 

    

 

 

 

Result

        

Segment result

     (6,401,086      —           (6,401,086
  

 

 

    

 

 

    

 

 

 

Loss before income tax expense

     (6,401,086      —           (6,401,086
  

 

 

    

 

 

    

 

 

 

Income tax expense

           —     
        

 

 

 

Loss after income tax expense

           (6,401,086
        

 

 

 

4. Current Receivables

 

     31 December 2015      30 June 2015  
     $      $  

Trade receivables

     116,354         165,310   

GST receivable

     112,157         150,143   
  

 

 

    

 

 

 
     228,511         315,453   
  

 

 

    

 

 

 

Due to the short term nature of these receivables, the carrying value is assumed to be their fair value as at 31 December 2015.

 

Prima BioMed Ltd- Appendix 4D    Page 12


Notes to the Financial Statements (continued)

 

 

5. Plant and Equipment

 

     Plant and
Equipment
     Computer      Furniture and
fittings
     Total  
     $      $      $      $  

At 1 July 2014

           

Cost or fair value

     1,248,948         62,789         12,765         1,324,502   

Accumulated depreciation

     (701,967      (39,603      (5,668      (747,238
  

 

 

    

 

 

    

 

 

    

 

 

 

Net book amount

     546,981         23,186         7,097         577,264   
  

 

 

    

 

 

    

 

 

    

 

 

 

Year ended 30 June 2015

           

Opening net book amount

     546,981         23,186         7,097         577,264   

Exchange differences

     (681      1,128         (22      425   

Additions

     44,627         4,201         —           48,828   

Disposal

     (178      (5,332      —           (5,510

Acquisition of subsidiary

     787         1,937         —           2,724   

Depreciation charge

     (308,719      (14,523      (2,532      (325,774
  

 

 

    

 

 

    

 

 

    

 

 

 

Closing net book amount

     282,817         10,597         4,543         297,957   
  

 

 

    

 

 

    

 

 

    

 

 

 

At 1 July 2015

           

Cost or fair value

     605,648         28,016         7,172         640,836   

Accumulated depreciation

     (322,831      (17,419      (2,629      (342,879
  

 

 

    

 

 

    

 

 

    

 

 

 

Net book amount

     282,817         10,597         4,543         297,957   
  

 

 

    

 

 

    

 

 

    

 

 

 

Half Year ended 31 December 2015

           

Opening net book amount

     282,817         10,597         4,543         297,957   

Exchange differences

     10,363         323         122         10,808   

Additions

     —           5,722         714         6,436   

Disposal

     (61,308      —           —           (61,308

Acquisition of subsidiary

     —           —           —           —     

Depreciation charge

     (131,437      (5,524      (1,370      (138,331
  

 

 

    

 

 

    

 

 

    

 

 

 

Closing net book amount

     100,435         11,118         4,009         115,562   
  

 

 

    

 

 

    

 

 

    

 

 

 

At 31 December 2015

           

Cost or fair value

     237,933         16,880         5,453         260,266   

Accumulated depreciation

     (137,498      (5,762      (1,444      (144,704
  

 

 

    

 

 

    

 

 

    

 

 

 

Net book amount

     100,435         11,118         4,009         115,562   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Prima BioMed Ltd- Appendix 4D    Page 13


Notes to the Financial Statements (continued)

 

 

6. Non-current assets – intangibles

 

     Patents      Intellectual
Property
     Goodwill      Total  
     $      $      $      $  

At 1 July 2014

           

Cost

     1,915,671         —           —           1,915,671   

Accumulated amortisation

     (1,798,788            (1,798,788
  

 

 

    

 

 

    

 

 

    

 

 

 

Net book amount

     116,883         —           —           116,883   
  

 

 

    

 

 

    

 

 

    

 

 

 

Year ended 30 June 2015

           

Opening net book amount

     116,883         —           —           116,883   

Acquisition of Immutep S.A

     —           23,451,000         109,962         23,560,962   

Amortisation charge

     (55,002      (960,426      —           (1,015,428
  

 

 

    

 

 

    

 

 

    

 

 

 

Closing net book amount

     61,881         22,490,574         109,962         22,662,417   
  

 

 

    

 

 

    

 

 

    

 

 

 

At 1 July 2015

           

Cost or fair value

     1,915,671         23,451,000         109,962         25,476,633   

Accumulated amortisation

     (1,853,790      (960,426      —           (2,814,216
  

 

 

    

 

 

    

 

 

    

 

 

 

Net book amount

     61,881         22,490,574         109,962         22,662,417   
  

 

 

    

 

 

    

 

 

    

 

 

 

Half Year ended 31 December 2015

           

Opening net book amount

     61,881         22,490,574         109,962         22,662,417   

Amortisation charge

     (8,841      (879,196      —           (888,037
  

 

 

    

 

 

    

 

 

    

 

 

 

Closing net book amount

     53,040         21,611,378         109,962         21,774,380   
  

 

 

    

 

 

    

 

 

    

 

 

 

At 31 December 2015

           

Cost or fair value

     1,915,671         23,451,000         109,962         25,476,633   

Accumulated amortisation

     (1,862,631      (1,839,622      —           (3,702,253
  

 

 

    

 

 

    

 

 

    

 

 

 

Net book amount

     53,040         21,611,378         109,962         21,774,380   
  

 

 

    

 

 

    

 

 

    

 

 

 

(i) Amortisation methods and useful lives

The group amortises intangible assets with a limited useful life using the straight-line method over the following periods:

 

    Patents, trademark and licenses – 13 – 21 years

 

    Intellectual property assets – 14 – 15 years

 

Prima BioMed Ltd- Appendix 4D    Page 14


Notes to the Financial Statements (continued)

 

 

7. Other Assets

 

     Note      31 December 2015      30 June 2015  
            $      $  

Current

        

Prepayments

     (a      613,096         380,749   

Security Deposits

        31,189         21,224   

Accrued interest

        237         3,955   

Comparability milestone

     (b      —           542,075   
     

 

 

    

 

 

 
        644,522         948,003   
     

 

 

    

 

 

 

 

(a) Prepayments relate predominantly to advance payments for clinical trial expenditure.
(b) The receivable is the estimated fair value of an amount paid into a retention account in relation to the acquisition of Immutep S.A.

8. Current liabilities - Borrowings

 

     31 December 2015      30 June 2015  
     $      $  

Amounts payable to related parties

     —           1,071,523   

Other borrowings

     —           436,950   
  

 

 

    

 

 

 
     —           1,508,473   
  

 

 

    

 

 

 

Dr Frédéric Triebel provided an unsecured loan to the company of $1,071,523. Interest was charged on this loan at the rate of 10% per annum and was repaid in full in August 2015.

Other borrowings relate to an interest-free loan advanced by France’s innovation agency, ANVAR, which was repaid in full in July 2015.

 

Prima BioMed Ltd- Appendix 4D    Page 15


Notes to the Financial Statements (continued)

 

 

9. Non-Current financial liability

 

     31 December 2015      30 June 2015  
     $      $  

Convertible note at fair value

     4,698,435         —     
  

 

 

    

 

 

 
     4,698,435         —     
  

 

 

    

 

 

 

On 14 May 2015 the Company entered into a subscription agreement with Ridgeback Capital Investments (Ridgeback) to invest in Convertible Notes and Warrants of the Company for cash consideration totaling $13,750,828, which was subject to shareholder approval at an Extraordinary General Meeting. Shareholder approval was received on 31 July 2015.

The 13,750,828 Convertible Notes issued have a face value of $1.00 per note, mature on 4 August 2025 and accrue interest at a rate of 3% per annum which may also be converted into shares. Conversions may occur during the period (i) at least 3 months after the Issue Date and (ii) at least 15 business days prior to the maturity date into 50 ordinary shares of the Company per note (subject to customary adjustments for rights or bonus issues, off market buybacks, issues at less than current market price, share purchase plan, dividend reinvestment plan at a discount, return of capital or dividend or other adjustment). If a change of control event, delisting event or event of default has occurred, Ridgeback may elect to convert the notes into shares or repayment of principal and interest. The Convertible Notes rank at least equal with all present and future unsubordinated and unsecured debt obligations of the Company and contain customary negative pledges regarding financial indebtedness, dividend payments, related party transaction and others.

8,475,995 Warrants were granted which are exercisable at a price of $0.025 per share on or before 4 August 2025. 371,445,231 Warrants were granted which are exercisable at a price of $0.0237 per share on or before 4 August 2020. All warrants may be settled on a gross or net basis and the number of warrants or exercise price may be adjusted for a pro rata issue of shares, a bonus issue or capital reorganisation. The Warrants do not confer any rights to dividends or a right to participate in a new issue without exercising the warrant.

In addition to the above cash financing from Ridgeback, it was disclosed at the Extraordinary General Meeting explanatory memorandum that Ridgeback also provides the company with additional benefits, including:

 

    Introductions to other well respected investment institutions which will help in future financing

 

    The ability to attract other top level executives and researchers to the company and the board

 

    Potential introductions for additional in-licensing opportunities; and

 

    Increased visibility to other biotechnology and pharmaceutical companies and potential partners and collaborators on Prima’s internal assets

As a result of the above, the additional benefits provided to Prima determine that the financing transaction, including the issue of warrants, is to be accounted for as a Share-Based Payment. The value of the share-based payment to the strategic investor has been calculated by determining the fair value of the convertible note and warrants at the time of EGM approval and deducting the net cash proceeds from Ridgeback.

 

Fair value of Convertible Note

     45,851,305   

Fair value of Warrants

     15,367,594   

Less cash received

     (13,750,828
  

 

 

 

Share based payment to strategic investor

     47,468,071   

 

Prima BioMed Ltd- Appendix 4D    Page 16


Notes to the Financial Statements (continued)

 

 

(i) Fair value of convertible notes

The fair value of the convertible notes has been estimated by an external valuer using a combination of the Black-Scholes methodology for the conversion option component of the notes and a discounted cashflow valuation for the debt component of the note. Key terms of the note are included above. The following assumptions which were based on market conditions that existed at the grant date:

 

Assumption

   Convertible notes    

Rationale

Historic volatility

     85.0   Based on the Company’s historical volatility data

Share price

   $ 0.051      Closing market share price on 31 July 2015

Risk free interest rate

     2.734   Based on Australian Government securities yields which match the term of the convertible note

Risk adjusted interest rate

     15.0   An estimate of the expected interest rate of a similar non-convertible note issued by the company

Dividend yield

     0.0   Based on the Company’s nil dividend history

Risk free rate

     2.734   Based on 10 year Australian Government securities yield

The fair value of the convertible note is allocated between a financial liability for the traditional note component of the convertible note and into equity which represents the conversion feature. The traditional note component of the convertible note was initially recorded at fair value of $4.4m, based on the present value of the contractual cash flows of the note discounted at 15%. After initial recognition, the note will be measured at fair value as required by AASB 2. The remaining value of the convertible note is allocated to the conversion feature and recognised as equity.

 

     Note - Liability      Conversion feature - Equity  

Fair value at issuance

     4,419,531         41,431,774   

Fair value movements

     278,904         —     
  

 

 

    

 

 

 

Balance at 31 December 2015

     4,698,435         41,431,774   
  

 

 

    

 

 

 

(ii) Fair value of warrants

The fair value of each warrant granted is not traded in an active market and instead has been estimated by an external valuer using the Black-Scholes pricing model based on the following assumptions. Key terms of the warrants were included above. The following assumptions were based on market conditions that existed at the grant date:

 

Assumption

   5 year warrants     10 year
warrants
   

Rationale

Historic volatility

     85.0     85.0   Based on 3 year historical volatility data for the Company

Exercise price

   $ 0.0237      $ 0.0250      As per subscription agreement

Share price

   $ 0.0510      $ 0.0510      Closing share price on valuation date from external market source

Risk-free interest rate

     2.177     2.886   Based on Australian Government securities yields which match the term of the warrant

Dividend yield

     0.0     0.0   Based on the Company’s nil dividend history

Fair Value

   $ 0.0457      $ 0.0403      Determined using Black-Scholes models with the inputs above

 

Prima BioMed Ltd- Appendix 4D    Page 17


Notes to the Financial Statements (continued)

 

 

10. Issued Capital

 

           31 December 2015      30 June 2015  
     Note     No.      $      No.      $  

Issued and Paid Up Capital

             

Fully paid ordinary shares

     10 (a)      2,058,297,608         184,714,121         1,751,494,601         170,216,482   

Options over fully paid ordinary share

       43,819,149         9,661,954         43,819,149         9,661,954   
       

 

 

       

 

 

 

Total Issued Capital

          194,376,075            179,878,436   
       

 

 

       

 

 

 

The Company has issued 19,800,000 fully vested options to be exercised any time over the 3 year period from the date of issuance at an exercise price to be determined based on the terms of the financing arrangements.

 

(a) Fully paid ordinary shares    Note     31 December 2015     30 June 2015  
           No.      $     No.      $  

At the beginning of reporting period

       1,751,494,601         170,216,482        1,228,709,341         139,352,418   

Shares issued during year

     10 (b)      283,158,931         13,761,075        284,274,073         7,365,369   

Exercise of options (shares issued during the year)

     10 (b)      23,644,076         1,017,900        72,413,924         3,731,339   

Exercise of convertible note (Shares issued during the year)

       —           —          166,097,263         19,931,672   

Transaction costs relating to share issues

       —           (281,336     —           (164,316
    

 

 

    

 

 

   

 

 

    

 

 

 

At reporting date

       2,058,297,608         184,714,121        1,751,494,601         170,216,482   
    

 

 

    

 

 

   

 

 

    

 

 

 

(b) Shares issued

 

31 December 2015 details    Number of
shares
    

Issue price

$

    

Total

$

 

Share issued under Share Purchase Plan

     200,000,000         0.05         10,000,000   

Ridgeback share issued

     12,136,750         0.02         209,966   

Nyenburgh Investment Partners share issued

     31,022,181         0.05         1,551,109   

L1 Capital share issued

     40,000,000         0.05         2,000,000   

Performance rights exercised

     23,644,076         0.04         1,017,900   
  

 

 

       

 

 

 
     306,803,007            14,778,975   
  

 

 

       

 

 

 

 

Prima BioMed Ltd- Appendix 4D    Page 18


Notes to the Financial Statements (continued)

 

 

10. Issued Capital (continued)

 

(b) Shares issued

 

30 June 2015 details    Number of
shares
    

Issue price

$

    

Total

$

 

Bergen commencement fee

     11,792,588         0.04         483,496   

Bergen collateral shares

     17,800,000         0.02         338,200   

Bergen first tranche

     13,163,514         0.04         526,541   

Performance right exercised

     1,715,686         0.04         63,480   

Bergen second tranche

     15,214,606         0.03         517,297   

Consideration buyer shares to Immutep stakeholders

     86,120,815         0.03         2,593,959   

Bergen third tranche

     15,323,414         0.03         505,674   

Bergen fourth tranche

     22,936,950         0.02         527,550   

Ridgeback share issued

     28,000,000         0.02         560,000   

Ridgeback first placement

     72,206,500         0.02         1,249,172   

Bergen options exercised

     19,800,000         0.05         1,084,050   

Conversion of Warrants – Immutep

     52,371,500         0.05         2,628,525   

Employee option exercised

     242,424         0.08         18,764   

Exercise of convertible note

     166,097,263         0.12         19,931,672   
  

 

 

       

 

 

 
     522,785,260            31,028,380   
  

 

 

       

 

 

 

11. Business combination

(a) Net cash outflow for prior years’ acquisition

 

     31 December 2015      31 December 2014  
     $      $  

Outflow of cash to acquire subsidiary, net of cash acquired

     

Cash consideration*

     —           16,314,812   

Less: Balances acquired

     

Cash

     —           545,195   
  

 

 

    

 

 

 

Net outflow of cash – investing activities

     —           15,769,617   
  

 

 

    

 

 

 

The total cash paid during the half year ended 31 December 2014 in relation to the acquisition of Immutep S.A. was $16,314,812.

(b) Comparability milestone

As part of the acquisition of Immutep S.A in the previous financial year, an amount of $1,084,149 was paid into a retention account and it was determined that there was a 50% likelihood that a comparability study was required. The fair value of the amount refundable on acquisition was $542,075 and as such the cash paid in relation to the purchase consideration was reduced by this amount. As the refundable consideration was contingent on an uncertain future event, it was recognised as a financial asset at fair value in accordance with AASB 3 on acquisition. During the half year period, the comparability study was not required, and as such was subsequently measured at fair value through profit or loss in accordance with AASB 3. Accordingly the $542,075 was recognised as an expense for the half year ended 31 December 2015.

 

Prima BioMed Ltd- Appendix 4D    Page 19


Notes to the Financial Statements (continued)

 

 

12. Subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries:

 

Name of entity    Country of
incorporation
   Class of
shares
    

31 December 2015

%

   

31 December 2014

%

 

Prima BioMed Australia Pty Ltd

   Australia      Ordinary         100     100

Prima BioMed IP Pty Ltd

   Australia      Ordinary         100     100

Prima BioMed GmbH

   Germany      Ordinary         100     100

Prima BioMed Middle East FZ-LLC

   UAE      Ordinary         100     100

Prima BioMed USA, Inc.

   USA      Ordinary         100     100

Immutep S.A.

   France      Ordinary         100     100

13. Contingent Liabilities

There were no material contingent liabilities at 31 December 2015.

14. Events Occurring After the Balance Sheet Date

No matters or circumstance has arisen since 31 December 2015 that has significantly affected, or may significantly affect the Company’s operations, the results of those operations or the Company’s state of affairs in future financial years.

15. Fair value measurement of financial instruments

This note provides an update on the judgements and estimates made by the group in determining the fair values of the financial instruments since the last annual financial report.

(a) Fair value hierarchy

To provide an indication about the reliability of the inputs used in determining fair value, the group classifies its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.

 

Prima BioMed Ltd- Appendix 4D    Page 20


Notes to the Financial Statements (continued)

 

 

15. Fair value measurement of financial instruments (continued)

 

The following table presents the group’s financial assets and financial liabilities measured and recognized at fair value at 31 December 2015 and 30 June 2015 on a recurring basis:

 

At 31 December 2015    Level 1      Level 2      Level 3      Total  
     $      $      $      $  

Assets

           

Comparability milestone at fair value

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities

           

Borrowings

     —           —           —           —     

Other financial liabilities

           

Convertible note

     —           —           4,698,435         4,698,435   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

     —           —           4,698,435         4,698,435   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

At 30 June 2015

   Level 1      Level 2      Level 3      Total  
     $      $      $      $  

Assets

           

Comparability milestone at fair value

     —           —           542,075         542,075   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

     —           —           542,075         542,075   
  

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities

           

Borrowings

     —           —           1,508,473         1,508,473   

Other financial liabilities

           

Convertible note

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

     —           —           1,508,473         1,508,473   
  

 

 

    

 

 

    

 

 

    

 

 

 

The group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as at 31 December 2015.

(a) Valuation techniques used to determine fair values

Level 1: The fair value of financial instruments trade in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted (unadjusted) market prices at the end of the reporting period. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

Specific valuation techniques used to value financial instruments include:

 

    The use of quoted market prices or dealer quotes for similar instruments.

 

    The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

 

    The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date

 

    The fair value of the remaining financial instruments is determined using discounted cash flow analysis.

 

Prima BioMed Ltd- Appendix 4D    Page 21


Notes to the Financial Statements (continued)

 

 

15. Fair value measurement of financial instruments (continued)

 

(b) Fair value measurements using significant unobservable inputs (level 3)

The following table presents the changes in level 3 instruments for the half-year ended 31 December 2015:

 

     Comparability
milestone
     Borrowings      Convertible
note
     Total  
     $      $      $      $  

Opening balance 1 July 2015

     542,075         (1,508,473      —           (966,398

Other increases/(decreases)

        1,508,473         (4,698,435      (3,189,962

(Losses)/gains recognised as an expense

     (542,075      —           —           (542,075
  

 

 

    

 

 

    

 

 

    

 

 

 

Closing balance 31 December 2015

     —           —           (4,698,435      (4,698,435
  

 

 

    

 

 

    

 

 

    

 

 

 

(i) Valuation inputs and relationships to fair value

The following table summarises the quantitative information about the significant inputs used in level 3 fair value measurements:

 

Description   

Fair value at
31 December
2015

$

     Unobservable inputs    Range of
inputs
 

Convertible note

     4,698,435       Face value      13,750,828   
      Interest rate of note      3
      Risk adjusted interest rate      15

(ii) Valuation process

The convertible note was valued using a Black Scholes model. Prima engaged KPMG as a valuation specialist to perform these valuations based on the inputs above.

 

Prima BioMed Ltd- Appendix 4D    Page 22


Directors’ Declaration

 

 

The Directors of the company declare that:

1. The financial statements and notes, as set out on pages 7 to 22 are in accordance with the Corporations Act 2001, including:

 

  (a) comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

 

  (b) give a true and fair view of the Company’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date.

2. In the directors’ opinion there are reasonable grounds to believe that Prima BioMed Ltd will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

 

LOGO

Mr Marc Voigt

CEO and Executive Director

Sydney

Dated: 29th Day of February 2016

 

Prima BioMed Ltd- Appendix 4D    Page 23


LOGO

Independent auditor’s review report to the members of Prima BioMed Ltd

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Prima BioMed Ltd (the company), which comprises the consolidated balance sheet as at 31 December 2015, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors’ declaration for Prima BioMed (the consolidated entity). The consolidated entity comprises the company and the entities it controlled during that half-year.

Directors’ responsibility for the half-year financial report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Australian Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Prima BioMed Ltd, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

PricewaterhouseCoopers, ABN 52 780 433 757

Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171

T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

 

Prima BioMed Ltd- Appendix 4D    Page 24


LOGO

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Prima BioMed Ltd is not in accordance with the Corporations Act 2001 including:

 

a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

 

b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

 

LOGO

PricewaterhouseCoopers

 

LOGO

Rod Dring

Partner

  

Sydney

29 February 2016

 

Prima BioMed Ltd- Appendix 4D    Page 25