PharmX

Nov 19, 2020

Message : *Required fields Corum Group Limited ABN 25 000 091 305 Level 3, 120 Sussex Street, Sydney NSW 2000 www.corumgroup.com.au Legal/73633702_1 30 September 2020 Principal Activities Corum Group Limited (ASX:COO) is a technology and software development company. The key business activities relate to Corum Health which develops and distributes business software for the pharmacy industry with emphasis on point-of-sale and pharmaceutical dispensing software, multi-site retail management, support services and computer hardware. Corum eCommerce operates a payment gateway primarily for the real estate and pharmacy sectors. Key Activities during the September 2020 Quarter Capital Raise During the quarter Corum successfully completed a $5.6m capital raise. 134,189,197 new shares were issued, 52% of which were entitlement offer acceptances. The shortfall placement was completed with strong demand from institutional, family office and private investors. The associated costs will be a cash outflow in the December 2020 quarter. PharmX Investment PharmX Pty Ltd is the pre-eminent electronic gateway that links pharmacies, pharmaceutical wholesalers and direct suppliers within the pharmacy market. In the prior financial year Corum increased its stake in PharmX to 43%. During the September 2020 quarter, Corum completed its acquisition of the remaining 57% of PharmX, and now owns 100%. The total consideration for this transaction was $7.9m cash. $3.75m was paid during the September 2020 quarter and the remaining $4.15m was paid in October. This acquisition has also resolved the matter of outstanding distributions that were due from PharmX to Corum. PharmX's results have been consolidated into the group from 1 September 2020 and made a positive contribution to Corum's operating cash flows. Software Investment Corum is continuing to invest in its software products, with $707,000 of the investment made during the quarter being capitalised. Much of this development was focused on continuing to improve our suite of products including the development of Corum Clear Enterprise and upgrading our RPM Head Office and retail offerings. Integration and functionality improvements have also continued to be developed on Corm Clear Dispense with this product continuing to be sold into the wider marketplace. BAMM Agreement The development of Corum Clear Enterprise, our next generation cloud-based Head Office solution, continued during the quarter. As per our 30 June 2020 announcement, the first milestone associated with the Subscription Deed with BAMM Group Administration Pty Ltd ('BAMM'), to develop a cloud-based Head Office solution, has not been met. Consequently, the arrangements between the parties for the further development of the product are being reviewed. Payments to related parties of the entity and their associates During the quarter, $457,000 was paid in fees and salaries to Directors, Key Management Personnel and their related entities. This included a final remuneration payment to the previous Managing Director. - ENDS - For further information contact: