Bio Gene Technology : Appendix 4D - Half Year Accounts - 31 December 2021

ASX ANNOUNCEMENT 17 FEBRUARY 2022

For personal use only

COMMENTARY ON HALF YEAR REPORT

Bio-Gene Technology Limited (ASX: BGT, "Bio-Gene" or "the Company"), an agtech development company enabling the next generation of novel insecticides, is pleased to present its financial results for the six months ended 31 December 2021 and an overview of operations for the period and up to date.

During the period the Company achieved several key milestones, including:

• Announcement of commercial deal with Evergreen Garden Care for consumer products
• Positive results from Clarke Phase 2 mosquito studies leading to signing of a binding term sheet to negotiate exclusive US development rights prior to Phase 3 testing
• Key IP protection allowed by US Patent Office extending patent coverage to 2038
• Capital raising of $3.2 million successfully completed
• Roadmap developed for registration enabling studies for both FlavocideTM and QcideTM

Operations:

In October the Company signed two new commercial agreements. The first was the signing of a license and development agreement with Evergreen Garden Care, the leading home and garden care company outside of North America, which was formerly known as Scotts International. The second was the signing of a binding option and term sheet with Clarke Mosquito Control relating to professional mosquito control in the public health sector in the United States.

The Evergreen partnership allows Bio-Gene to move forward with Evergreen to create consumer focused products using the Bio-Gene technology, initially for the European and Australia/New Zealand markets.

The Binding Term Sheet with Clarke allowed for 90 days exclusivity for the parties to finalise terms of a commercial agreement. These negotiations are continuing, and it is expected that the Company will be in a position to update the market further in the near future. As part of the long-term commercial agreement, the Companies are planning to proceed with the phase 3 studies, which will focus on (a) determining the effective rate of formulations in field operations and (b) a comparison of effective dose against one or more pyrethroid resistant populations. These studies are expected to commence once suitable weather conditions return to the U.S. post the northern hemisphere winter.

The Company is also working closely with other potential partners which are evaluating Bio-Gene's products under Material Transfer Agreements (MTAs) as well as having discussions with additional entities interested in testing the Company's products for different applications. The Company plans to announce further results of the testing under a number of these MTAs towards the end of this financial year.

In addition to supporting these discussions, the Bio-Gene team has also been managing the ongoing research programs for both Flavocide and Qcide, including product efficacy testing, registration-enabling studies and improvements in manufacturing processes, in order to generate further value-adding data and progress towards regulatory approvals. Specifically, the company announced the signing of a research agreement with the University of Florida to progress a research program to phase 2, which will look at Qcide and Flavocide in synergistic combinations with pyrethrins/pyrethroids against resistant houseflies.

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ASX ANNOUNCEMENT 17 FEBRUARY 2022

The Company also announced the allowance of a new patent in the United States based on US Patent Application 16/856984. This patent focuses on the treatment of resistant pests, and in particular stored grain pests. This is a significant result, given the size of the U.S. market for many applications. It considerably strengthens Bio-Gene's IP position and creates a strong negotiation position for future commercial deals. The patent provides coverage until July 2038. There are a number of patent applications still under review around the world.

The Company has continued to build on this and other recent patent allowances in Australia by filing and responding to feedback on patent applications in other jurisdictions. The recent allowances in Australia and the U.S. give the Company confidence that further allowances will be granted. Via its internally funded research, Bio-Gene is continuing to look at opportunities to support additional patent applications that would offer additional value to the Company and its commercial partners.

The Bio-Gene technical and product development team has been working closely with the Company's regulatory and other expert advisors to clearly identify the roadmap for registration of Bio-Gene's active ingredients. The information required for each of the targeted market segments and major geographies has been identified and costed. Bio-Gene has confirmed protocols and study plans for the testing program for the current financial year with several of these key studies now underway.

Subsequent to the end of the half year, the Company announced in early February the appointment of Sarah Driessens as Head of Regulatory Affairs. Sarah has a Masters in Biotechnology and has worked for over 13 years with Monsanto (and subsequently Bayer after the Monsanto acquisition). Her main areas of focus were product registrations for agricultural and consumer products across major geographic jurisdictions. She gained invaluable knowledge and experience working with key stakeholders and achieved notable success, especially in the European regulatory system. Sarah will lead the coordination of the Bio-Gene regulatory program.

Financial Performance:

In December, the Company completed a strategic capital raise. The raise secured $3.2 million before costs which strengthens the Company's balance sheet and will help fund its operations including:

• Major registration enabling studies (specifically mammalian toxicology and ecotox/environmental fate) to support commercial partners as highlighted in recent announcements;
• The development of additional efficacy studies to support commercial discussions in new market segments and provide data support for value-adding IP;
• The further advancement of manufacturing improvement programs for Qcide and Flavocide;
• Recruitment of additional expertise to project manage the Company's expanded operations; and
• General working capital.

For the six months to 31 December 2021, the Company produced a loss from ordinary activities before income tax of $1.4 million, an 8.1% increase over the previous corresponding period. The Company's cash position at balance date was $5.8 million.

Further highlights and full financial results are contained in the attached Appendix 4D.

Approved for release by the Board of Directors of the Company.

-ENDS-

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ASX ANNOUNCEMENT 17 FEBRUARY 2022

For personal use only

For further information, please contact:

Bio-Gene Technology Limited:
Richard Jagger	Roger McPherson
Chief Executive Officer	CFO & Company Secretary
P:	03 9628 4178	P:	03 9628 4178
E:	[e-mail]	E:	[e-mail]

About Bio-Gene Technology Limited

Bio-Gene is an Australian agtech company enabling the next generation of novel insecticides. Bio-Gene's novel platform technology is based on a naturally occurring class of chemicals known as beta-triketones.

Beta-triketone compounds have demonstrated insecticidal activity (e.g., kill or knock down insects) via a novel mode of action in testing performed to date. This platform may provide multiple potential new solutions for insecticide manufacturers in applications across crop protection and storage, public health, animal health and consumer products. The Company's aim is to develop and commercialise a broad portfolio of targeted insect control and management solutions.

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APPENDIX 4D

BIO-GENE TECHNOLOGY LIMITED

ABN 32 071 735 950

	HALF YEAR REPORT
Current reporting period	Half year ended 31 December 2021
Previous corresponding period	Half year ended 31 December 2020
Results for announcement to the market
									A$'000
	Revenues from ordinary activities	Up	360.0%	to	410
	Loss from ordinary activities after tax attributable to	Up	8.1%	to	(1,437)
	members
	Net loss for the period attributable to members	Up	8.1%	to	(1,437)
	Explanation
	Dividends (distributions)		Amount per		Franked amount
		security			per security
	Interim dividend		NIL					NIL
	Previous corresponding period		NIL					NIL
	Record date for determining entitlements to the dividend				N/A
				31 December			31 December
					2021				2020
	Net tangible asset per security		0.034¢			0.024¢
	Control gained over entities having material effect
	N/A
	Loss of control of entities having material effect
	N/A
	Details of aggregate share of profit (loss) of associated and joint venture entities
	N/A
	This report is based on:
	accounts which have been subject to review

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For personal use only

BIO-GENE TECHNOLOGY LIMITED

ABN 32 071 735 950

APPENDIX 4D - HALF YEAR REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2021

Contents	Page
Directors' report	6
Auditor's independence declaration	10
Statement of profit or loss and other comprehensive income	11
Statement of financial position	12
Statement of changes in equity	13
Statement of cash flows	14
Notes to the financial statements	15
Directors' declaration	18
Independent auditor's review report to the members	19

This half year financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2021 and any public announcements made by Bio-Gene Technology Limited during the half year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the Australian Securities Exchange.

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