Announcement PDF Annual Report 2025/2026 Cynata Therapeutics Limited ACN 104 037 372 Corporate Directory Annual report for the financial year ended 30 June 2026 Board of Directors Dr Geoff Brooke Non-Executive Chair Dr Kilian Kelly Non-Executive Director Dr Paul Wotton Non-Executive Director Ms Janine Rolfe Non-Executive Director Company Secretary Mr Peter Webse Registered Office and Principal Place of Business Level 3, 100 Cubitt Street Cremorne, Victoria 3121 Tel: +61 3 7067 6940 Email: info@cynata.com Website www.cynata.com Auditors Stantons International Audit & Consulting Pty Ltd Level 2, 40 Kings Park Road West Perth, Western Australia 6005 Share Registry Automic Registry Services Level 5, 191 St Georges Terrace Perth, Western Australia 6000 Tel: 1300 288 664 (within Australia) +61 2 9698 5414 (outside Australia) Fax: +61 8 9321 2337 Email: hello@automic.com.au Web: www.automic.com.au Stock Exchange Australian Securities Exchange Level 50, South Tower, Rialto 525 Collins Street Melbourne, Victoria 3000 ASX Code CYP – fully paid ordinary shares 1  1 Contents Chair’s Letter 2 Directors’ Report 4 Operating and Financial Review 12 Remuneration Report (audited) 18 Auditor’s Independence Declaration 31 Independent Auditor’s Report 32 Directors’ Declaration 36 Financial Statements 38 Notes 44 Consolidated Entity Disclosure Statement 69 ASX Additional Information 70 2 Cynata Therapeutics Annual Report 2025/2026 Chair’s Letter Dear Shareholders, This has been an extremely difficult and disappointing year for Cynata and its shareholders. Twelve months ago, we described the 2026 financial year as the most pivotal in our history, with results due from two clinical efficacy trials that we believed could transform the Company’s prospects. Sadly, those readouts did not deliver the outcomes we had hoped for, and that has had a profound impact on the Company. On 17 June 2026, we announced the termination of our Phase 2 trial of CYP-001 in acute graft versus host disease (aGvHD), after the data failed to demonstrate a meaningful benefit over standard steroid therapy alone. Two days later, on 19 June 2026, we reported that the University of Sydney- led Phase 3 SCUlpTOR trial of CYP‑004 in knee osteoarthritis had missed both of its co-primary endpoints for pain and cartilage thickness, with an unexpectedly strong response in the placebo arm masking any potential treatment effect. Neither trial raised new safety concerns, and I want to acknowledge the professionalism and commitment of everyone involved in running them. However, the clinical outcomes fell short of what we, our investigators, and patients were hoping for. In response, the Board acted quickly and decisively. On 6 July 2026, shortly after year end, we announced a comprehensive restructuring of the Company. Every employee position was made redundant, including the position held by our Chief Executive Officer and Managing Director, Dr Kilian Kelly. The Company is now managed directly by the Board, which has itself reduced in size following the resignation of Dr Darryl Maher. I am grateful that Kilian has agreed I want to thank our shareholders for their support through what has been an extremely difficult period. 3 Chair’s Letter to remain on the Board, in an unpaid, non-executive capacity, and I thank both him and Darryl for their significant contributions to Cynata over many years. I also thank Dr Paul Wotton and Ms Janine Rolfe, who remain on the board and along with myself, agreed to waive their fees from 1 July 2026. These were not easy decisions, and they affected people who have given a great deal to this Company and to the development of the Cymerus™ platform. Alongside this restructuring, we obtained a $600,000 R&D Tax Incentive loan facility, secured against the assets of the Company including our anticipated FY2026 rebate of approximately $1.7 million, lifting our pro forma cash position at the end of the financial year to around $1.5 million. Combined with a significantly reduced cost base, this extends our anticipated cash runway beyond the end of the 2027 financial year, giving the Board time to fully evaluate the Company’s options. Earlier in the financial year, our investigator-led Phase 1/2 kidney transplantation trial at Leiden University Medical Center reached an important milestone, with the independent Data and Safety Monitoring Board completing a positive review of the first patient cohort, finding no safety concerns and no episodes of transplant rejection, and recommending the trial proceed to a second cohort. We also strengthened our intellectual property position with new patent grants and allowances in the United States and Europe. Cynata’s core asset, our Cymerus™ platform, remains intact. It continues to offer a genuinely differentiated approach to manufacturing mesenchymal stromal cells (MSCs) at commercial scale from a single, consistent cell source. The Board is now focused on evaluating the future development pathways available for this technology, and the broader strategic options open to the Company. This includes seeking opportunities to realise the value from the Cymerus™ technology and obtain rights to new assets, while operating with a much-reduced cost base and preserving our intellectual property. We will update shareholders about next steps as soon as we are in a position to do so. On behalf of the Board, I want to thank our shareholders for their support through what has been an extremely difficult period. I also extend my gratitude to every member of the Cynata team, past and present, for their dedication to this Company’s mission. The disappointing trial results do not reflect on the quality of their work or their commitment. The Board remains committed to acting in the best interests of shareholders as we determine the right path forward for Cynata. Yours sincerely, Dr Geoff Brooke Chair 4 Cynata Therapeutics Annual Report 2025/2026 Directors’ Report The directors of Cynata Therapeutics Limited (“Cynata” or “the Company”) and its controlled entities (“the Group”) submit herewith the annual report of the Group for the financial year ended 30 June 2026. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: 5 Directors’ Report Board of Directors The names and particulars of the directors of the Group during or since the end of the financial year are: Dr Geoff Brooke MBBS, MBA Independent Chair, joined the Board in May 2019 as Non-Executive Director and appointed Chair on 18 August 2020. Dr Brooke co-founded GBS Venture Partners in 1996 and has more than 30 years’ venture capital experience. He was formerly President of Medvest Inc., a US-based early- stage venture capital group he founded with Johnson & Johnson. Dr Brooke’s experience includes company formation and acquisitions as well as public listings on NYSE, NASDAQ and ASX exchanges. He is a non-executive director of Acrux Limited (ASX: ACR), Saluda Medical Inc (ASX: SLD) and Chair of Actinogen Medical Limited (ASX: ACW) and has been a founder, executive and director of private and public companies. From 2009 until 2015, Dr Brooke was an independent director of the Victoria Workcover Authority. He also works with a number of other entities, including as a consultant to BioScience Managers. Dr Brooke holds a Bachelor of Medicine/Surgery from Melbourne University and a Master of Business Administration from IMEDE (now IMD) in Switzerland. Dr Kilian Kelly MPharm, PhD, GAICD Non-Executive Director from 6 July 2026. Dr Kelly was Managing Director & Chief Executive Officer as from 1 July 2023 to 6 July 2026. Dr Kelly has served as Senior Director, Drug Development at Biota Pharmaceuticals Inc. Prior to joining Biota, he was Vice President, Regulatory and Clinical at Mesoblast Ltd. Dr Kelly has also held a variety of regulatory and project management positions with Kendle International, Amgen and AstraZeneca. He holds a Masters in Pharmacy from Robert Gordon University, Aberdeen and a PhD in Pharmaceutical Sciences from Strathclyde University, Glasgow. He is a registered pharmacist and a member of the Royal Pharmaceutical Society, a graduate and member of the Australian Institute of Company Directors (AICD), a member of the International Society for Cell and Gene Therapy (ISCT) and the International Society for Stem Cell Research (ISSCR). He also currently serves on the ISCT Asia-Pacific Industry Committee, the ISSCR Best Practices Regulatory Working Group and the Industry Interface Committee of the Centre for Commercialisation of Regenerative Medicine (CCRM) Australia. 6 Cynata Therapeutics Annual Report 2025/2026 Ms Janine Rolfe BEc, LLB (Hons), MAICD Independent Non-Executive Director, joined the Board in September 2022. Ms Rolfe brings more than two decades of legal, governance and management experience across multiple sectors, including highly regulated industries and complex global businesses. Ms Rolfe is a professional non-executive director and currently sits on the boards of Swoop Holdings Limited (ASX: SWP), Ambertech Limited (ASX: AMO) and Cloudwerx Holdings Pty Ltd. Ms Rolfe is also a commissioner for the NSW Independent Casino Commission, a statutory authority. Previously, Ms Rolfe was General Counsel & Company Secretary of Link Group. Prior to that, Ms Rolfe founded the governance consultancy, Company Matters, and worked both as in-house counsel at Qantas and in private practice at Mallesons Stephen Jaques (now King & Wood Mallesons). Dr Paul Wotton MBA, PhD Independent Non-Executive Director, joined the Board in June 2016. He is the Executive Chairman of the Biotech LaunchPad at Rice University, Houston. He was President and CEO of Obsidian Therapeutics, Founding CEO of Sigilon Therapeutics (acquired by Lilly) and President and CEO of Ocata Therapeutics, Inc. (NASDAQ: OCAT) which was acquired by Astellas in 2016. Prior to Ocata, Dr Wotton had served as President and CEO of Antares Pharma Inc. (NASDAQ: ATRS). Prior to joining Antares, Dr Wotton was the CEO of Topigen Pharmaceuticals. Earlier in his career, he held senior level executive positions at SkyePharma plc, Eurand International BV, Penwest Pharmaceuticals, Abbott Laboratories and Merck, Sharp and Dohme. Dr Wotton is a member of the board of Vericel Corporation (NASDAQ: VCEL), Chairman of Dimension Inx., and Chairman of Kytopen Inc. Dr Wotton received his Ph.D. in pharmaceutical sciences from the University of Nottingham. In 2014, he was named EY Entrepreneur of the Year (NJ) in Life Sciences. Dr Darryl Maher MBBS, PhD Dr Maher joined the Board in June 2020. Dr Maher undertook medical training, qualified as a specialist haematologist and completed a PhD before commencing his career in the pharmaceutical industry. Dr Maher resigned on 6 July 2026. Directors’ Report (cont’d) 7 Directors’ Report 7 Directorships of other listed companies Directorships of other listed companies held by directors in the 3 years immediately before the end of the financial year are as follows: Name Company Period of directorship Geoff Brooke Acrux Limited Since Jun 2016 Actinogen Medical Limited Since Mar 2017 Saluda Medical Inc. Since Dec 2025 Paul Wotton Vericel Corporation Since 2015 Janine Rolfe Ambertech Limited Since Sept 2023 Swoop Holdings Limited Since June 2026 Directors’ shareholdings The following table sets out each director’s relevant interest in shares, rights or options in shares or debentures of the Company or a related body corporate as at the date of this report: Fully paid ordinary shares Share options Directors No. No. Geoff Brooke 312,898 500,000 Kilian Kelly 797,428 2,750,000 Paul Wotton 585,076 220,000 Janine Rolfe 255,167 520,000 Remuneration of key management personnel Information about the remuneration of key management personnel (“KMP”) is set out in the remuneration report section of this directors’ report. The term ‘key management personnel’ refers to those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including any director (whether executive or otherwise) of the Group. Options granted to directors and senior management No options were granted to directors and key management personnel during and since the end of the financial year (2025: nil). 8 Cynata Therapeutics Annual Report 2025/2026 8 Directors’ Report (cont’d) Company Secretary Mr Peter Webse held the position of company secretary of Cynata Therapeutics Limited at the end of the financial year. He joined Cynata in April 2012. Mr Webse is a director of Governance Corporate Pty Ltd, a company specialising in providing company secretarial, corporate governance and corporate advisory services. Mr Webse acts as Company Secretary for a number of ASX listed biotech and technology companies. Dividends No dividends have been paid or declared since the start of the financial year and the directors have not recommended the payment of a dividend in respect of the financial year. Shares under option or issued on exercise of options Details of unissued shares or interests under option as at the date of this report are: Issuing entity Grant date Number of shares under option Class of shares Exercise price of option Expiry date of options Cynata Therapeutics Limited 1 22 Nov 2022 300,000 Ordinary $0.510 23 Nov 2027 Cynata Therapeutics Limited 2 30 Jun 2023 2,033,333 Ordinary $0.176 30 Jun 2028 Cynata Therapeutics Limited 3 13 Nov 2023 1,885,555 Ordinary $0.185 20 Nov 2028 Cynata Therapeutics Limited 4 16 Jan 2024 975,000 Ordinary $0.195 16 Jan 2029 Cynata Therapeutics Limited 5 17 Apr 2024 1,800,000 Ordinary $0.290 17 Apr 2029 Cynata Therapeutics Limited 6 13 Sept 2024 1,000,000 Ordinary $0.280 12 Sept 2028 1 Unlisted options issued to Ms Rolfe on 22 November 2022 in consideration of her agreeing to join the Board and to reward her expected future commitment and contribution as a director. 2 Unlisted options issued to Dr Kelly (2,000,000) pursuant to the terms of his appointment on 1 July 2023 as Managing Director & CEO, plus 33,333 unlisted options issued to Dr David Atkins pursuant to the terms of his appointment on 1 July 2023 as Non-Executive Director. Dr Atkins was initially issued 300,000 options but he resigned on 13 November 2023 and as a result, 266,667 options were cancelled on his resignation. 3 Unlisted options issued to Dr Brooke (500,000), Dr Kelly (750,000), Dr Maher (220,000), Ms Rolfe (220,000) and Dr Wotton (220,000) to ensure alignment with shareholders’ interests and to maximise Company value. On 6 July 2026, 24,445 options held by Dr Maher lapsed upon his resignation. 4 Unlisted options issued to Dr Airey (500,000), Mr Webse (125,000) and other employees of the Company (350,000) pursuant to an Equity Incentive Plan. 5 Unlisted options issued to Dr Kroll pursuant to an Equity Incentive Plan. 6 Unlisted options issued to an external consultant under an Equity Incentive Plan in lieu of payment of fees. The holders of these options do not have the right, by virtue of the option, to participate in any share issue or interest issue of the Company or of any other body corporate or registered scheme. There were no shares or interests issued during or since the end of the financial year as a result of exercise of an option (2025: 72,917). 9 Directors’ Report 9 Directors’ meetings The following table sets out the number of directors’ meetings held during the financial year and the number of meetings attended by each director. During the financial year, 8 board meetings were held. Board of Directors Directors Held Attended Geoff Brooke 8 7 Kilian Kelly 8 8 Paul Wotton 8 8 Darryl Maher (resigned 6 July 2026) 8 8 Janine Rolfe 8 8 Indemnification of officers and auditors The Company indemnifies each of its Directors, Officers and Company Secretary. The Company indemnifies each Director or officer to the maximum extent permitted by the Corporations Act 2001 from liability to third parties, except where the liability arises out of conduct involving lack of good faith and in defending legal and administrative proceedings and applications for such proceedings. The Company must use its best endeavours to insure a Director or Officer against any liability, which does not arise out of conduct constituting a wilful breach of duty or a contravention of the Corporations Act 2001. The Company must also use its best endeavours to insure a Director or Officer against liability for costs and expenses incurred in defending proceedings whether civil or criminal. The Company has not entered into any agreement with its current auditors indemnifying them against any claims by third parties arising from their provision of audit services. Insurance premiums During the year, the Company paid insurance premiums to insure directors and officers against certain liabilities arising out of their conduct while acting as an officer of the Group. Under the terms and conditions of the insurance contract, the nature of the liabilities insured against and the premium paid cannot be disclosed. Proceedings on behalf of the Company No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. Changes in state of affairs On 17 and 19 June 2026 respectively, the Company announced results of its Phase 2 acute graft versus host disease and Phase 3 osteoarthritis trials, both of which failed to demonstrate efficacy. In response to these outcomes, the Company implemented changes to its board and management, reduced expenditure and entered into a Research and Development Tax Incentive (R&D TI) loan facility, as outlined in the following Subsequent Events disclosure. Aside from these developments, there was no significant change in the state of affairs of the Group during the financial year. 10 Cynata Therapeutics Annual Report 2025/2026 10 Directors’ Report (cont’d) Subsequent events On 6 July 2026, the Company announced substantial reductions in expenditure, including board and management changes and the establishment of a Research and Development Tax Incentive (R&D TI) loan facility. All of the Company’s employee positions were made redundant including the positions of Chief Executive Officer and Managing Director, Chief Medical Officer and Chief Business Officer. The R&DTI loan is for a total of $600,000 and is secured against the Company’s assets including its anticipated R&D TI rebate for the 2026 financial year. On 6 July 2026, Dr Darryl Maher resigned as director of the Company. Following the early termination of the Company’s Phase 2 clinical trial of CYP-001 in acute graft- versus-host disease in June 2026, Cynata and the Contract Research Organisation that was engaged to manage the trial undertook a reconciliation of the remaining amounts payable under their agreement. The Contract Research Organisation continued to undertake trial close-out and other wind-down activities subsequent to the financial year end. Both parties reached an agreement in principle regarding the amount payable which remains subject to formal documentation. This provided further information relevant to measuring the Company’s obligation at 30 June 2026. Accordingly, the Company recognised an additional accrual in the financial report solely in respect of services provided and costs incurred up to 30 June 2026. Other than the above, there has not been any matter or circumstance occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or state of affairs of the Group in future financial years. Corporate governance Cynata Therapeutics Limited and the board support and adhere to the principles of corporate governance and are committed to achieving and demonstrating the highest standards of corporate governance. Cynata has reviewed its corporate governance practices against the Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council. The 2026 Corporate Governance Statement is dated 28 September 2026 and reflects the corporate governance practices in place throughout the 2026 financial year. The 2026 Corporate Governance Statement was approved by the board on 28 September 2026. A description of the Group’s current corporate governance practices is set out in the Group’s Corporate Governance Statement which can be viewed at www.cynata.com/corporate- governance. Environmental regulations The Group’s operations are not subject to significant environmental regulation under the Australian Commonwealth or State law. Non-audit services The auditor did not perform any non-audit services during the financial year. Auditor’s independence declaration The auditor’s independence declaration for the financial year ended 30 June 2026 has been received and is included on page 31 of this annual report. 11 Directors’ Report 11 12 Cynata Therapeutics Annual Report 2025/2026 12 Principal activities The Group’s principal activities throughout the financial year continued to be the development and commercialisation of a proprietary induced pluripotent stem cell (iPSC)-based platform technology, Cymerus™. Operating results The consolidated loss of the Group for the financial year, after accounting for an R&D refund of $1,711,618 (2025: $1,885,140) and providing for income tax, amounted to $9,248,815 (2025: $9,390,586). Further discussion on the Group’s operations is provided below: Operational update CYP-001 – Phase 2 aGvHD Trial: Results Announced June 2026 CYP-001 is Cynata’s Cymerus™ iPSC1 -derived MSC2 product candidate for intravenous use. The Phase 2 trial enrolled a total of 65 patients with high-risk acute graft versus host disease (HR-aGvHD), across clinical centres in Australia, the USA and Europe. Patients were 1 iPSC = induced pluripotent stem cell. 2 MSC = mesenchymal stem (or stromal) cell. randomised to receive either steroids plus CYP-001 (active group) or steroids plus placebo (control group).3 On 17 June 2026, the Company announced the primary evaluation results of this Phase 2 clinical trial. While there were no safety concerns identified, with a similar adverse event profile between groups, there were also no significant differences between the control and active groups in the primary or key secondary efficacy endpoints. In addition to the 100-day primary evaluation period, which has been completed, the trial protocol included a follow-up period that was anticipated to end in December 2027 (two years after the final patient was enrolled). In light of the primary evaluation results, the Company made the decision to terminate the trial early. CYP-004 – Phase 3 Osteoarthritis Trial: Results Announced June 2026 CYP-004 is Cynata’s Cymerus™ iPSC-derived MSC product candidate for intra-articular injection.4 The SCUlpTOR5 trial was a randomised and placebo- controlled Phase 3 trial, conducted by the University of Sydney (USYD), with funding provided under 3 More information on the trial is available at https://clinicaltrials. gov/study/NCT05643638 4 Intra-articular injection = injection into a joint 5 SCUlpTOR = Stem Cells as a symptom- and strUcture- modifying Treatment for medial tibiofemoral OsteoaRthritis. Operating and Financial Review 13 Operating and Financial Review 13 an Australian Government NHMRC6 project grant. Patients were randomised to receive intra-articular injections of either saline (placebo control group) or CYP-004 (active group). The trial was led by Professor David Hunter, the Florance and Cope Chair of Rheumatology and Professor of Medicine at the University of Sydney and Royal North Shore Hospital. As announced on 19 June 2026, the Company received top-line results of this trial from USYD. Again, there were no safety concerns identified, with a similar adverse event profile between groups. However, there were also no statistically significant differences between the active and control groups in either of the co-primary endpoints, which assessed pain reduction and change in cartilage thickness, respectively, from baseline to 24 months. There was a substantial and durable reduction in knee pain intensity at all timepoints from 3-24 months compared to baseline (secondary endpoint), but no significant differences between groups at any timepoint. CYP-001 – Phase 1/2 Kidney Transplantation Trial: Second Cohort Ongoing As announced on 4 December 2025, the independent DSMB completed its planned review of the first cohort of patients treated with CYP-001 in the Phase 1/2 NEREID kidney transplant trial. This investigator-led 16 patient trial, conducted by Leiden University Medical Center (LUMC), is designed to assess whether CYP-001 can reduce reliance on calcineurin inhibitors, potentially offering patients safer long-term immune modulation. Each of the three patients in Cohort 1 received a single intravenous infusion of CYP-001 approximately six weeks after receiving a kidney transplant, in addition to standard treatment. There were no episodes of kidney transplant rejection in this cohort, and no safety concerns have been identified. Enrolment of the second cohort of patients is now ongoing. Cohort 2 will involve a further three patients, each of whom will receive two infusions of CYP-001, in addition to standard treatment. 6 NHMRC = National Health and Medical Research Council Corporate Updates Subsequent to the end of the year, on 6 July 2026, the Company announced substantial reductions in expenditure, including Board and Management changes. The key changes were as follows: z All of the Company’s employee positions were made redundant, including the position of Chief Executive Officer and Managing Director. z Dr Darryl Maher resigned as a Director. z The Company is now being managed by the Board of Directors. Dr Kilian Kelly, who previously held the position of CEO and Managing Director, remains on the Board as a Non-Executive Director, without remuneration. All other members of the Board also agreed to waive their fees, effective 1 July 2026. z The Company has terminated agreements with service providers working on the Phase 2 aGvHD trial and suspended or terminated other outsourced activities to the maximum extent possible, whilst preserving the Company’s intellectual property. Finance During the year, Cynata received a Research and Development Tax Incentive rebate of $1,711,618 (2025: $1,885,140) from the Australian Federal Government and raised $2,704,000 (before costs) via the ATM facility and a Placement. The net assets of the Group have decreased by $6,535,509 to a net liability position of $553,774 in 2026 (2025: net assets of $5,981,735). Subsequent to the end of the year, on 6 July 2026, the Company announced that it entered into a Research & Development Tax Incentive (R&D TI) loan facility with a commercial lender, for a total of $600,000. The loan is secured against the Company’s anticipated R&D TI rebate for the 2026 financial year, which is expected to be approximately $1.7m, along with a general security interest over the Company’s assets. Receipt of the loan proceeds took the Company’s cash balance 14 Cynata Therapeutics Annual Report 2025/2026 14 Operating and Financial Review (cont’d) to approximately $1.5m in early July 2026. Once the R&D TI rebate is received, the Company anticipates receiving further funds of approximately $1m, after the R&D TI loan is repaid. The Company’s forecast cash runway extends beyond the end of the 2027 financial year. Outlook The Board is continuing to evaluate a number of options for further development of the Cymerus™ technology and for next steps for the Company more broadly. This includes seeking opportunities to realise value from the existing Cymerus™ technology, and identifying opportunities to acquire, in-license or otherwise obtain rights to new assets. The Board will update shareholders on these matters as soon as possible. Material risks Cynata operates in the biotechnology and pharmaceutical development sector and is exposed to risks that could materially affect its future operating and financial performance, prospects and the value of its securities. While the Company seeks to manage these risks through appropriate controls and strategic decision-making, many are inherent in pharmaceutical development and outside the Company’s control. The principal material risks identified by the Company are described below. (a) Funding and financial resources risk The Company has limited financial resources and does not currently generate operating revenue to fund material development activities. Its ability to execute its strategy, including maintaining and seeking to realise value from its existing technology and acquiring or in-licensing new development opportunities, will depend on careful management of its existing resources and access to additional funding. There is no assurance that additional funding will be available when required or on acceptable terms. If sufficient funding is not available, the Company may be unable to acquire or progress new opportunities or may need to delay, reduce or discontinue activities. Equity financing may also result in dilution to existing shareholders. Mitigation measures employed by the Company include: maintaining a streamlined cost base; active cash flow and capital management; considering available financial resources before committing to new opportunities; and evaluating available funding alternatives as required. (b) Business development and new asset acquisition risk An important component of the Company’s strategy is to identify opportunities to acquire, in-license or otherwise obtain rights to new pharmaceutical or biotechnology assets or development programs. There is no assurance that suitable opportunities w