FORM 6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

dated October 30, 2018

 

Commission File Number 0-51504

 

GENETIC TECHNOLOGIES LIMITED

(Exact Name as Specified in its Charter)

 

N/A

(Translation of Registrant’s Name)

 

60-66 Hanover Street

Fitzroy

Victoria 3065 Australia

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x            Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes o                         No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  Not applicable.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused the Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: October 30, 2018

 

 

 

 

 

 

 

GENETIC TECHNOLOGIES LIMITED

 

 

 

 

By:

/s/ Kevin Fischer

 

 

Name:

Kevin Fischer

 

 

Title:

Company Secretary

 

2

 

EXHIBIT INDEX

 

Exhibit

 

Description of Exhibit

 

 

 

99.1

 

ASX Announcement, October 30, 2018: Notice of 2018 Annual General Meeting, Sample Proxy and 2018 Annual Report

 

 

 

99.2

 

Quarterly Activities Report and Appendix 4C of the ASX Listing Rules for the quarter ended 30 September 2018

 

3

Exhibit 99.1

ASX ANNOUNCEMENT 30 October 2018 Notice of 2018 Annual General Meeting, Sample Proxy and 2018 Annual Report Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE) is pleased to release its Notice of the 2018 Annual General Meeting of shareholders (the “Notice”), a Sample Proxy for the AGM, and its 2018 Annual Report. The Notice and a personalised proxy is being mailed to all shareholders and the Company’s 2018 Annual Report is available for download from its website: www.gtglabs.com As detailed in the Notice the 2018 Annual General Meeting will be held at 10.30 am on Thursday, 29 November 2018 at the following address: Genetic Technologies Limited 60-66 Hanover Street Fitzroy, Victoria 3063 Australia FOR FURTHER INFORMATION PLEASE CONTACT Dr Paul Kasian Chairman and Interim CEO Genetic Technologies Limited + 61 3 8412 7000 Jason Wong (USA) Blueprint Life Science Group +1 (415) 375 3340, Ext. 4 About Genetic Technologies Limited Genetic Technologies Limited (ASX: GTG; Nasdaq: GENE) is a diversified molecular diagnostics company embracing blockchain technologies across Genomic testing platforms. GTG offers cancer predictive testing and assessment tools to help physicians proactively manage patient health. The Company’s lead product, BREVAGenplus®, is a clinically validated risk assessment test for non-hereditary breast cancer and is first in its class. For more information, please visit www.brevagenplus.com and www.phenogensciences.com. Genetic Technologies is developing a pipeline of risk assessment products including a novel colorectal cancer (CRC) test. For more information, please visit www.gtgcorporate.com Genetic Technologies Limited • Website: www.gtglabs.com • Email: info@gtglabs.com ABN 17 009 212 328 Registered Office • 60-66 Hanover Street Fitzroy Victoria 3065 Australia • Postal Address P.O. Box 115 Fitzroy Victoria 3065 Australia Phone +61 3 8412 7000 • Fax +61 3 8412 7040

 

Safe Harbor Statement Any statements in this press release that relate to the Company's expectations are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act. The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees. Since this information may involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results. Additional risks associated with Genetic Technologies' business can be found in its periodic filings with the SEC. Genetic Technologies Limited • Website: www.gtglabs.com • Email: info@gtglabs.com ABN 17 009 212 328 Registered Office • 60-66 Hanover Street Fitzroy Victoria 3065 Australia • Postal Address P.O. Box 115 Fitzroy Victoria 3065 Australia Phone +61 3 8412 7000 • Fax +61 3 8412 7040

 

Genetic Technologies Limited NOTICE OF ANNU AL GENERAL MEETING 2018 Notice is given that the Annual General Meeting of the shareholders of Genetic Technologies Limited (ACN 009 212 328) will be held at: 10.30 am on Thursday, 29 November 2018 at Genetic Technologies Limited 60-66 Hanover Street Fitzroy, Victoria 3063 Australia

 

ORDINAR Y BUSINES S To receive and consider the Company’s financial report, directors’ report and auditor’s report for the year ended 30 June 2018, contained in the Company’s 2018 Annual Report. 2 CONSIDERATION OF FINANCIAL STATEMENTS Voting Restriction Statement: Section 250R of the Corporations Act A vote on Resolution 1 must not be cast (in any capacity) by or on behalf of any of the following persons; ii) the voter is the chair of the meeting and the appointment of the chair as proxy: A) does not specify the way the proxy is to vote on the resolution; and B) expressly authorises the chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the Key Management Personnel for the Company or, if the Company is part of a consolidated entity, for the entity. To receive and consider the &RPSDQ\¬V ²QDQFLDO UHSRUW, directors’ report and auditor’s report for the year ended 30 June 2018, contained in the Company’s 2018 Annual Report. a) a member of Key Management Personnel, details of whose remuneration are included in the Remuneration Report; or a Closely Related Party of such a member, RESOLUTION 1: ADOPTION OF THE REMUNERATION REPORT 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass the following resolution as an Advisory Resolution with or without amendment: b) (collectively, an Excluded Voter). However, an Excluded Voter may cast a vote on Resolution 1 if: “That for the purpose of Section 250R(2) of the Corporations Act and all other purposes the Remuneration Report as set out in the Directors’ report for the Company for the year ended 30 June 2018 be adopted.” a) the Excluded Voter does so as a proxy; and the vote is not cast on behalf of an Excluded Voter; and either: RESOLUTION 2: RE-ELECTION OF DR LINDSAY WAKEFIELD b) 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass the following resolution as an Ordinary Resolution, with or without amendment: c) * Please note that section 250R (3) of the Corporations Act 2001 (Cth) provides that the vote on this resolution is advisory only and does not bind the Directors or the Company. i) the voter is appointed as a proxy by writing that VSHFL²HV WKH ZD\ WKH SUR[\ LV to vote on the resolution; or ©7R HOHFW 'U /LQGVD\ :DNH²HOG ZKR retires by rotation in accordance ZLWK FODXVH 20.3 RI WKH &RPSDQ\¬V Constitution and being eligible offers himself for re-election as a Director.”

 

RESOLUTION 3: ADOPTION OF EMPLOYEE OPTION PLAN 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass the following resolution as an Ordinary Resolution, with or without amendment: a) any Key Management Personnel (which includes the Chair) of the Company, or if the Company is part of a consolidated entity, of the entity; or a Closely Related Party of such Key Management Personnel, Voting Exclusion Statement: Listing Rule 10.11 The Company will disregard any votes cast in favour of Resolution 4 by or on behalf of: ]Dr Paul Kasian; or ]any associate of Dr Paul Kasian. However, the Company need not disregard a vote if: b) “That the Employee Share and 2SWLRQ 3ODQ ((623), ZKLFK LV summarised in the attached Explanatory Memorandum, be approved and that for the purposes of Exception 9(b) of Listing Rule 7.2 and for all other purposes, the issue of securities under the Employee Share and Option Plan ZLWKLQ WKUHH (3) \HDUV IURP WKH GDWH of this resolution be an exception to Listing Rules 7.1 and 7.1A.” who is appointed as a Shareholder’s proxy, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution. ] it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. However, the Company need not disregard a vote on this Resolution 3 if it is cast by the person chairing the Meeting as proxy for a person who is entitled to vote, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution, on the condition that the appointment of proxy expressly authorises the Chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the Key Management Personnel for the Company, or if the Company is part of a consolidated entity, of the entity. ] 01 Voting Exclusion Statement: Listing Rule 7.2, Exception 9 The Company will disregard any votes cast in favour of the Resolution by or on behalf of: Voting Exclusion Statement: Part 2E of the Corporations Act For the purposes of Part 2E of the Corporations Act, a vote on Resolution 4 must not be cast by or on behalf of: ]Dr Paul Kasian; and ]an associate of Dr Paul Kasian. However, this does not prevent the casting of a vote on Resolution 4 if it is cast by a person as a proxy LQ ZULWLQJ WKDW VSHFL²HV KRZ WKH proxy is to vote on the proposed resolution and it is not cast on behalf of a person referred to in sub-paragraphs (a) or (b) directly above. ] a Director of the Company (except one who is ineligible to participate in any employee incentive scheme in relation to the Company); or an Associate of that person. RESOLUTION 4: THE ISSUE OF PERFORMANCE RIGHTS TO DR PAUL KASIAN 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass, the following resolution as an Ordinary Resolution, with or without amendment: ] However, the Company need not disregard a vote if: ] it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. “That pursuant to Listing Rule 10.11 and for the purposes of Part 2E of the Corporations Act and for all other purposes, Shareholders approve the grant to Dr Paul Kasian, being a Director of the Company, or his nominee, of 7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C Performance Rights for nil consideration and to allot and issue Shares upon the vesting and subsequent exercise of those Performance Rights (on a one-for-one basis) in accordance ZLWK WKH WHUPV DQG FRQGLWLRQV set out in the Explanatory Memorandum accompanying this Notice of Meeting.” ] Voting Exclusion Statement: Section 250BD of the Corporations Act A vote on Resolution 4 must not be cast on, and the Company will disregard any votes cast on, this Resolution by: Voting Exclusion Statement: Section 250BD of the Corporations Act A vote on Resolution 3 must not be cast on, and the Company will disregard any votes cast on, this Resolution by: a) any Key Management Personnel (which includes the Chair) of the Company, or if the Company is part of a consolidated entity, of the entity; or NOTICE OF AGM 2018

 

] ] b) a Closely Related Party of such Key Management Personnel, 'U /LQGVD\ :DNH²HOG; RU any associate of Dr Lindsay :DNH²HOG However, the Company need not disregard a vote on this Resolution 5 if it is cast by the person chairing the Meeting as proxy for a person who is entitled to vote, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution, on the condition that the appointment of proxy expressly authorises the Chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the Key Management Personnel for the Company, or if the Company is part of a consolidated entity, of the entity. who is appointed as a Shareholder’s proxy, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution. However, the Company need not disregard a vote if: ] it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. However, the Company need not disregard a vote on this Resolution 4 if it is cast by the person chairing the Meeting as proxy for a person who is entitled to vote, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution, on the condition that the appointment of proxy expressly authorises the Chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the Key Management Personnel for the Company, or if the Company is part of a consolidated entity, of the entity. ] RESOLUTION 6: THE ISSUE OF PERFORMANCE RIGHTS TO DR GEORGE MUCHNICKI 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass, the following resolution as an Ordinary Resolution, with or without amendment: Voting Exclusion Statement: Part 2E of the Corporations Act For the purposes of Part 2E of the Corporations Act, a vote on Resolution 5 must not be cast by or on behalf of: 02 ] ] 'U /LQGVD\ :DNH²HOG; DQG an associate of Dr Lindsay :DNH²HOG RESOLUTION 5: THE ISSUE OF PERFORMANCE RIGHTS TO DR LINDSAY WAKEFIELD “That pursuant to Listing Rule 10.11 and for the purposes of Part 2E of the Corporations Act and for all other purposes, Shareholders approve the grant to Dr George Muchnicki, being a Director of the Company, or his nominee, of 6,250,000 Class A Performance Rights for nil consideration and to allot and issue Shares upon the vesting and subsequent exercise of those Performance Rights (on a one-for-one basis) in accordance ZLWK WKH WHUPV DQG FRQGLWLRQV set out in the Explanatory Memorandum accompanying this Notice of Meeting.” However, this does not prevent the casting of a vote on Resolution 5 if it is cast by a person as a proxy in ZULWLQJ WKDW VSHFL²HV KRZ WKH SUR[\ is to vote on the proposed resolution and it is not cast on behalf of a person referred to in sub-paragraphs (a) or (b) directly above. 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass, the following resolution as an Ordinary Resolution, with or without amendment: “That pursuant to Listing Rule 10.11 and for the purposes of Part 2E of the Corporations Act and for all other purposes, Shareholders approve the grant to Dr Lindsay :DNH²HOG, EHLQJ D 'LUHFWRU RI the Company, or his nominee, of 3,750,000 Class A Performance Rights for nil consideration and to allot and issue Shares upon the vesting and subsequent exercise of those Performance Rights (on a one-for-one basis)in accordance ZLWK WKH WHUPV DQG FRQGLWLRQV set out in the Explanatory Memorandum accompanying this Notice of Meeting.” Voting Exclusion Statement: Section 250BD of the Corporations Act A vote on Resolution 5 must not be cast on, and the Company will disregard any votes cast on, this Resolution by: Voting Exclusion Statement: Listing Rule 10.11 The Company will disregard any votes cast in favour of Resolution 6 by or on behalf of: a) any Key Management Personnel (which includes the Chair) of the Company, or if the Company is part of a consolidated entity, of the entity; or a Closely Related Party of such Key Management Personnel, ] ] Dr George Muchnicki; or any associate of Dr George Muchnicki. b) Voting Exclusion Statement: Listing Rule 10.11 The Company will disregard any votes cast in favour of Resolution 5 by or on behalf of: who is appointed as a Shareholder’s proxy, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution.

 

However, the Company need not disregard a vote if: ]it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or ]it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. However, the Company need not disregard a vote on this Resolution 6 if it is cast by the person chairing the Meeting as proxy for a person who is entitled to vote, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution, on the condition that the appointment of proxy expressly authorises the Chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the Key Management Personnel for the Company, or if the Company is part of a consolidated entity, of the entity. However, the Company need not disregard a vote if: ] it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. ] Voting Exclusion Statement: Part 2E of the Corporations Act For the purposes of Part 2E of the Corporations Act, a vote on Resolution 6 must not be cast by or on behalf of: ]Dr George Muchnicki; and ]an associate of Dr George Muchnicki. Voting Exclusion Statement: Part 2E of the Corporations Act For the purposes of Part 2E of the Corporations Act, a vote on Resolution 7 must not be cast by or on behalf of: RESOLUTION 7: THE ISSUE OF PERFORMANCE RIGHTS TO MR PETER RUBINSTEIN 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass, the following resolution as an Ordinary Resolution, with or without amendment: 03 ] ] Mr Peter Rubinstein; and an associate of Mr Peter Rubinstein. However, this does not prevent the casting of a vote on Resolution 6 if it is cast by a person as a proxy in ZULWLQJ WKDW VSHFL²HV KRZ WKH SUR[\ is to vote on the proposed resolution and it is not cast on behalf of a person referred to in sub-paragraphs (a) or (b) directly above. However, this does not prevent the casting of a vote on Resolution 7 if it is cast by a person as a proxy in ZULWLQJ WKDW VSHFL²HV KRZ WKH SUR[\ is to vote on the proposed resolution and it is not cast on behalf of a person referred to in sub-paragraphs (a) or (b) directly above. “That pursuant to Listing Rule 10.11 and for the purposes of Part 2E of the Corporations Act and for all other purposes, Shareholders approve the grant to Mr Peter Rubinstein, as a Director of the Company, or his nominee, of 5,000,000 Class A Performance Rights for nil consideration and to allot and issue Shares upon the vesting and subsequent exercise of those Performance Rights (on a one-for-one basis) in accordance ZLWK WKH WHUPV DQG FRQGLWLRQV set out in the Explanatory Memorandum accompanying this Notice of Meeting.” Voting Exclusion Statement: Section 250BD of the Corporations Act A vote on Resolution 6 must not be cast on, and the Company will disregard any votes cast on, this Resolution by: a) any Key Management Personnel (which includes the Chair) of the Company, or if the Company is part of a consolidated entity, of the entity; or b) a Closely Related Party of such Key Management Personnel, Voting Exclusion Statement: Section 250BD of the Corporations Act A vote on Resolution 7 must not be cast on, and the Company will disregard any votes cast on, this Resolution by: a) any Key Management Personnel (which includes the Chair) of the Company, or if the Company is part of a consolidated entity, of the entity; or a Closely Related Party of such Key Management Personnel, Voting Exclusion Statement: Listing Rule 10.11 The Company will disregard any votes cast in favour of Resolution 7 by or on behalf of: b) who is appointed as a Shareholder’s proxy, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution. who is appointed as a Shareholder’s proxy, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution. ] ] Mr Peter Rubinstein; or any associate of Mr Peter Rubinstein. NOTICE OF AGM 2018

 

However, the Company need not disregard a vote on this Resolution 7 if it is cast by the person chairing the Meeting as proxy for a person who is entitled to vote, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution, on the condition that the appointment of proxy expressly authorises the Chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the Key Management Personnel for the Company, or if the Company is part of a consolidated entity, of the entity. However, the Company need not disregard a vote if: However, the Company need not disregard a vote on this Resolution 8 if it is cast by the person chairing the Meeting as proxy for a person who is entitled to vote, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution, on the condition that the appointment of proxy expressly authorises the Chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the Key Management Personnel for the Company, or if the Company is part of a consolidated entity, of the entity. ] it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. ] Voting Exclusion Statement: Part 2E of the Corporations Act For the purposes of Part 2E of the Corporations Act, a vote on Resolution 8 must not be cast by or on behalf of: RESOLUTION 8: THE ISSUE OF PERFORMANCE RIGHTS TO MR SAM LEE 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass, the following resolution as an Ordinary Resolution, with or without amendment: RESOLUTION 9: APRROVAL OF ISSUES UNDER THE STANDBY EQUITY PLACEMENT FACILITY (KENTGROVE CAPITAL GROWTH FUND) 04 ] ] Mr Sam Lee; and an associate of Mr Sam Lee. 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass the following resolution as an Ordinary Resolution, with or without amendment: However, this does not prevent the casting of a vote on Resolution 8 if it is cast by a person as a proxy in ZULWLQJ WKDW VSHFL²HV KRZ WKH SUR[\ is to vote on the proposed resolution and it is not cast on behalf of a person referred to in sub-paragraphs (a) or (b) directly above. “That pursuant to Listing Rule 10.11 and for the purposes of Part 2E of the Corporations Act and for all other purposes, Shareholders approve the grant to Mr Sam Lee, being a Director of the Company, or his nominee of 3,750,000 Class A Performance Rights for nil consideration and to allot and issue Shares upon the vesting and subsequent exercise of those Performance Rights (on a one-IRU-RQH EDVLV) LQ DFFRUGDQFH ZLWK the terms and conditions set out in the Explanatory Memorandum accompanying this Notice of Meeting.” “That for the purposes of Listing Rule 7.1 and all other purposes, the Company is authorised to issue a maximum of $20,000,000 ZRUWK RI 6KDUHV DW RU DERYH WKH Minimum Issue Price, pursuant to WKH (TXLW\ 3ODFHPHQW )DFLOLW\ ZLWK Kentgrove Capital Pty Ltd ACN 150 638 627 in its capacity as trustee RI WKH .HQWJURYH &DSLWDO *URZWK )XQG (.HQWJURYH) GHWDLOV RI ZKLFK are set out in the Explanatory Memorandum accompanying this Notice of Meeting (Kentgrove Facility).” Voting Exclusion Statement: Section 250BD of the Corporations Act A vote on Resolution 8 must not be cast on, and the Company will disregard any votes cast on, this Resolution by: a) any Key Management Personnel (which includes the Chair) of the Company, or if the Company is part of a consolidated entity, of the entity; or a Closely Related Party of such Key Management Personnel, Voting Exclusion Statement: Listing Rule 10.11 The Company will disregard any votes cast in favour of Resolution 8 by or on behalf of: ]Mr Sam Lee; or ]any associate of Mr Sam Lee. Voting Exclusion Statement: Listing Rule 7.1 The Company will disregard any votes cast in favour of Resolution 9 by or on behalf of: b) who is appointed as a Shareholder’s proxy, where the Shareholder does not direct in writing the way the proxy is to vote on the Resolution. ] any person who is expected to participate in , or who will obtain D PDWHULDO EHQH²W DV D UHVXOW RI, the proposed issue (except a EHQH²W VROHO\ E\ UHDVRQ RI EHLQJ a holder of ordinary securities in the Company); or an associate of those persons. ]

 

RESOLUTION 12: APPROVAL OF PROPOSED NEW PLACEMENT OF SHARES TO SOPHISTICATED INVESTORS ] However, the Company need not disregard a vote if: ]it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or ]it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass the following resolution as an Ordinary Resolution, with or without amendment: RESOLUTION 11: STRATEGIC ALLIANCE AND ISSUE OF MILESTONE SHARES TO BLOCKCHAIN GLOBAL LIMITED 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass the following resolution as an Ordinary Resolution, with or without amendment: “That pursuant to Listing Rule 7.1 and for all other purposes, the Company is authorised to issue XS WR $75 PLOOLRQ ZRUWK RI 6KDUHV at an issue price per Share of not less than 80% of the volume ZHLJKWHG DYHUDJH PDUNHW SULFH RI the Company’s shares calculated RYHU WKH ODVW 5 GD\V RQ ZKLFK VDOHV in the shares of the Company ZHUH UHFRUGHG EHIRUH WKH GD\ RQ ZKLFK WKH VKDUH SODFHPHQW LV made (Placement) to unrelated institutional, sophisticated or RWKHUZLVH H[HPSW LQYHVWRUV (WR be approved by the Board) on the terms and conditions set out in the Explanatory Memorandum accompanying this Notice of Meeting.” RESOLUTION 10: RATIFICATION OF ISSUES UNDER THE STANDBY EQUITY PLACEMENT FACILITY (KENTGROVE CAPITAL GROWTH FUND) 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass the following resolution as an Ordinary Resolution, with or without amendment: ©7KDW LQ DFFRUGDQFH ZLWK &KDSWHU 2E of the Corporations Act, and for the purposes of ASX Listing Rule 10.11 and all other purposes, Shareholders approve the FRPPHQFHPHQW RI WKH )UDPHZRUN Agreement and the issue of up to 486,000,000 Shares in the Company (BCG Milestone Shares) to BCG (or its nominee) on the terms and conditions set out in the Explanatory Memorandum accompanying this Notice of Meeting.” 05 “That for the purposes of Listing Rule 7.4 and all other purposes, Shareholders ratify the issue of: a) b) 8,833,100 Establishment Shares; 100,000,000 Collateral Shares; and 12,500,000 Establishment Options, exercisable at $0.0153 each and expiring 3 years after issue, Voting Exclusion Statement: Listing Rule 7.1 The Company will disregard any votes cast in favour of Resolution 12 by or on behalf of: Voting Exclusion Statement: Listing Rule 10.11 The Company will disregard any votes cast in favour of Resolution 8 by or on behalf of: c) ] a person who is expected to participate in, or who will obtain D PDWHULDO EHQH²W DV D UHVXOW of, the propsed issue (except a EHQH²W VROHO\ E\ UHDVRQ RI EHLQJ a holder of ordinary securities in the Company); or an associate of that person. to Kentgrove on 8 August 2018, pursuant to the Kentgrove Facility on the terms and conditions set out in the Explanatory Memorandum accompanying this Notice of Meeting.” ] ] Blockchain Global Limited; or any associate of Blockchain Global Limited. However, the Company need not disregard a vote if: ] ] it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. Voting Exclusion Statement: Listing Rule 7.4 The Company will disregard any votes cast in favour of Resolution 10 by or on behalf of Kentgrove or any associate of Kentgrove. However, the Company need not disregard a vote if: ] it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. ] However, the Company need not disregard a vote if: ]it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or ] NOTICE OF AGM 2018

 

SPECIAL BUSINES S 06 RESOLUTION 13: APPROVAL OF INCREASED PLACEMENT CAPACITY Voting Exclusion Statement: Listing Rule 7.1A The Company will disregard any votes cast in favour of Resolution 13 by or on behalf of: Dated this 23rd day of October 2018 By order of the Board 7R FRQVLGHU DQG, LI WKRXJKW ²W, WR pass the following resolution as a Special Resolution, with or without amendment: ] a person who is expected to participate in, or who will obtain D PDWHULDO EHQH²W DV D UHVXOW RI, the proposed issue (except a EHQH²W VROHO\ E\ UHDVRQ RI EHLQJ a holder of ordinary securities in the Company) ; or an associate of those persons. “That pursuant to and in DFFRUGDQFH ZLWK /LVWLQJ 5XOH 7.1A and for all other purposes, Shareholders approve the issue of Equity Securities up to 10% of the issued capital of the Company (at the time of the issue) calculated LQ DFFRUGDQFH ZLWK WKH IRUPXOD prescribed in Listing Rule 7.1A.2 over a 12 month period from the date of this Meeting, at a price not less than that determined pursuant WR /LVWLQJ 5XOH 7.7$.3 DQG RWKHUZLVH on the terms and conditions in the Explanatory Memorandum accompanying this Notice of Meeting.” Kevin Fischer Company Secretary ] However, the Company need not disregard a vote if: ] it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or it is cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides. ]

 

 

VOTINGENTITLEMENTN OTICE For the purposes of determining voting entitlements at the Meeting, the Company has determined that in accordance with regulation 7.11.37 of the Corporations Regulations, Shares will be taken to be held by the persons registered as holders at 7.00pm on Tuesday, 27 November 2018. 07 Accordingly, transfers registered after that time will be disregarded in determining entitlements to attend and vote at the Meeting. in your place. To appoint a proxy you should complete Step 1 on the attached Proxy Form. If you wish to appoint a person other than the Chairman, you should complete the second panel in Step 1, and not ©WLFNª WKH ²UVW SDQHO. with an express authorisation for the Chairman to vote the proxy in accordance with the Chairman’s intention, namely in favour of each of the proposed resolutions set out in the Notice of Meeting. PROXIES Shareholders are entitled to appoint a proxy to attend and vote on their behalf. Where a Shareholder is entitled to cast two or more votes at the meeting, they may appoint two proxies. Where more than one proxy is appointed, each proxy form may specify the proportion or number of votes which the proxy may exercise. If it does not specify the proportion or number of votes each proxy may exercise, each proxy may exercise half of the votes. A proxy may, but need not be a Shareholder of the Company. The proxy form must be signed by the Shareholder or his/ her attorney duly authorised in writing or, if the Shareholder is a corporation, in a manner permitted by the Corporations Act 2001 (Cth) (Corporations Act). Proxy Forms must be lodged in accordance with the directions set out on the Proxy Form not later than 48 hours prior to the Meeting. Proxy Forms must be received by Computershare Investor Services, GPO Box 242, Melbourne, Victoria 3001, Australia or by fax, within Australia on 1800 783 447 or outside Australia on +61 3 9473 2555, by no later than 10.30 am on Tuesday, 27 November 2018. The proxy need not be a Shareholder of the Company. If you are entitled to cast two or more votes you may appoint two proxies and may specify the proportion or number of votes each proxy is appointed to exercise. If the proxy appointments do not specify the proportion or number of your votes that each proxy may exercise, each proxy may exercise half your votes. If there is more than one proxy appointed, on a show of hands only one of the proxies may vote, but on a poll, each proxy may exercise votes in respect of those shares the proxy represents. BODIES CORPORATE A body corporate may appoint an individual as its representative to exercise any of the powers the body may exercise at meetings of the Company’s shareholders. The appointment may be a standing one. Unless the appointment states otherwise, the representative may exercise all of the powers that the appointing body could exercise at a meeting or in voting on a resolution. The Chairman intends to vote all undirected proxies in favour of the resolutions put in the Notice of Meeting, subject to compliance with the Corporations Act. In particular, if the Chairman of the Meeting is appointed as your proxy DQG \RX KDYH QRW VSHFL²HG WKH way the Chairman is to vote on a Resolution, by signing and returning the Proxy Form, you are considered to have provided the Chairman The representative should bring to the meeting evidence of his or her appointment, including any authority under which the appointment is signed, unless it has previously been given to the Company. APPOINTMENT OF PROXIES If you are entitled to vote at the Meeting you have the right to appoint a proxy to attend and vote NOTICE OF AGM 2018

 

EXPLAN ATO R YMEMORANDUM This Explanatory Memorandum has been prepared for the information of Shareholders of the Company in connection with the business to be conducted at the Annual General Meeting of shareholders to be held at 10.30am on Thursday, 29 November 2018. 08 2. RESOLUTION 1: ADOPTION OF THE REMUNERATION REPORT The Notice of Meeting, which is also enclosed, sets out details of proposals concerning the Resolutions to be put to Shareholders. permitted to vote on a resolution to approve the Remuneration Report, and if the vote to approve the Remuneration Report receives a “no” vote by at least 25% of the votes cast, this will constitute a ©²UVW VWULNHª. b) 2.1 Background The Company submits it Remuneration Report for the ²QDQFLDO \HDU HQGHG 30 -XQH 2018 WR Shareholders for consideration and adoption by way of a non-binding Advisory Resolution pursuant to section 250R of the Corporations Act. The Company’s Remuneration Report can be found in the Company’s 2018 Annual Report. It sets out a range of matters relating to the remuneration of Directors and Senior Executives of the Company and explains Board policies in relation to the nature and value of remuneration paid to Directors and Senior Executives within the Company. A copy of the Company’s 2018 Annual Report can be found on its website at www.gtglabs.com. The Directors recommend Shareholders read the accompanying Notice of Meeting and this Explanatory Memorandum in full before making any decision in relation to the Resolutions. As no “strike” occurred at the Genetic Technologies’ 2017 Annual General Meeting, the current “strike” FRXQW LV ]HUR. ,I D ©²UVW VWULNHª ZDV to occur at the 2018 Annual General Meeting: 8QOHVV RWKHUZLVH GH²QHG WHUPV XVHG in this Explanatory Memorandum are GH²QHG LQ 6HFWLRQ 12. a) the Company’s subsequent Remuneration Report (in other words, the Company’s Remuneration Report to be included in the 2019 Annual Report) must include an explanation of the Board’s proposed action in response to the “no vote” or an explanation of why no action has been taken; and if the Company’s subsequent (i.e. 2019) Remuneration Report also receives a “no vote” at the 2019 Annual General Meeting of at least 25% of the votes cast, then Shareholders at the 2019 Annual General Meeting will be asked (at that 2019 Annual General Meeting) to vote on whether or not the Company is to hold another general Shareholder’s 1. CONSIDERATION OF FINANCIAL STATEMENTS The Company’s 2018 Annual Report FRPSULVLQJ WKH &RPSDQ\¬V ²QDQFLDO report, directors’ report and auditor’s report for the year ended 30 June 2018 was lodged with ASX on 30 August 2018. The Company’s 2018 Annual Report is placed before Shareholders for discussion. No voting is required for this item. A vote on this Resolution 1 is advisory only and does not bind the Directors or the Company. b) The Corporations Act provides that: a) members of the Key Management Personnel whose remuneration details are included in the Remuneration Report (and any Closely Related Party of those members) are not

 

meeting (within the following 90 days) to vote on a “spill resolution” under section 250V of the Corporations Act. 'U :DNH²HOG GLUHFWO\ RU WKURXJK related or associated entities, owns 8,325,263 Shares and 8,333,333 Options in the Company. 4.2 Listing Rule 7.1 Listing Rule 7.1 prohibits a company, except in certain cases, from issuing new equity securities equivalent in number to more than 15% of its capital in any 12 month period without the prior approval of its shareholders. Securities issued with shareholder approval under ASX Listing Rule 7.1 do not count towards the 15% limit. In the interests of corporate governance the Board abstains from making a recommendation in relation to Resolution 1. 3.1 Directors Recommendation The Directors of the Company (ZLWK 'U :DNH²HOG DEVWDLQLQJ) consider that Resolution 2 is in the best interests of the Company and recommend that Shareholders vote in favour of this Ordinary Resolution. A voting restriction statement is set out in Resolution 1 in the Notice. As a result, any issue of Shares by the Company under an employee incentive scheme would reduce the Company’s 15% capacity to issue Shares under Listing Rule 7.1 as well as its capacity to issue Shares under Listing Rule 7.1A. Shareholders should be aware that any undirected proxies given to the Chair will be cast by the Chair and counted in favour of the Resolutions the subject of this Meeting, including this Resolution 1, subject to compliance with the Corporations Act. In exceptional circumstances, the Chairman of the Meeting may change his voting intention on any resolution, in which case an ASX announcement will be made. 4. RESOLUTION 3: ADOPTION OF EMPLOYEE OPTION PLAN 4.1 Background The Company has an existing staff share plan (Existing Plan) that was originally approved by shareholders in 2008 and was most recently approved in 2014. To ensure that the Company has appropriate and current mechanisms to continue to attract and retain the services of employees of a high calibre, the Company proposes to adopt a new employee share and option plan (ESOP) pursuant to which issued capital of the Company may be made available to directors, senior management and staff as a form of longer term equity incentive which will supersede the previous staff share plan. The employees of the Company have been, and will continue to be, instrumental in the growth of the Company. The Directors consider that the ESOP is an appropriate method to: 09 However, Exception 9(b) of Listing Rule 7.2 allows a company to LVVXH VHFXULWLHV ZLWKRXW VSHFL²F shareholder approval and without reducing the 15% capacity under Listing Rule 7.1 or the 10% capacity under Listing Rule 7.1A where shareholders of a company have approved the issue of securities pursuant to an employee incentive scheme as an exception to Listing Rule 7.1 within 3 years prior to the issue of the securities. Resolution 3 is being put to the Shareholders for this purpose and will allow the Company to utilise Exception 9 of Listing Rule 7.2 for 3 years from the date of the Resolution being passed. 3. RESOLUTION 2: RE-ELECTION OF DR LINDSAY WAKEFIELD 'U :DNH²HOG UHWLUHV E\ URWDWLRQ in accordance with clause 20.3 of the Company’s Constitution and being eligible, offers himself for re-election. 'U :DNH²HOG ZDV DSSRLQWHG WR the Board on 24 September 2014. He started Safetech in 1985 and over the next 25 years Safetech became a force in the Australian material handling and lifting equipment market, designing and manufacturing a wide range of industrial products. In 1993, he left medicine to become the fulltime CEO of Safetech. In 2006 Safetech was awarded the Telstra Australian National Business of the Year. In 2013 Safetech merged and ultimately acquired Tieman Materials +DQGOLQJ. 'U :DNH²HOG FRQWLQXHV DV the CEO of Safetech. It is Australia’s largest manufacturer and supplier of dock equipment, freight hoists and custom lifting solutions. Safetech employs approximately 100 people. 'U :DNH²HOG KDV EHHQ D %LRWHFK investor for more than 20 years. 4.3 Listing Rule Information The following information is required to be provided to shareholders pursuant to Listing Rule 7.2 Exception 9(b): i) reward employees for their past performance; provide long term incentives for participation in the Company’s future growth; and ii) a) The Number of Options issued since Shareholder approval was last obtained for the purpose of ASX Listing Rule 7.2 exception 9 (i.e. since 25 November 2014) iii) motivate and generate loyalty from employees. Additionally, the Company believes it to be in the best interests of the Company to preserve the maximum FRPPHUFLDO ³H[LELOLW\ WR LVVXH 6KDUHV that is afforded to it by Listing Rule 7.1. NOTICE OF AGM 2018

 

Date of Issue Description of Options Quantity 25 November 2015 Unlisted options granted as part of the employee option scheme (GTGAD) 25,736,111 31 March 2016 Unlisted options granted as part of the employee option scheme (GTGAD) 8,000,000 17 February 2017 Unlisted options granted as part of the employee option scheme (GTGAD) 22,750,000 TOTAL 56,486,111 5. RESOLUTIONS 4, 5, 6, 7 AND 8: THE ISSUE OF PERFORMANCE RIGHTS TO RELATED PARTIES – DR PAUL KASIAN, DR LINDSAY WAKEFIELD, DR GEORGE MUCHNICKI, MR PETER RUBINSTEIN AND MR SAM LEE ] Approval of the ESOP is therefore sought under Exception 9(b) to Listing Rule 7.2 so that any issue of securities under the ESOP over the next 3 years is disregarded when determining the 15% threshold of the Company. b) Summary of the Option Plan Rules. motivate and generate loyalty from employees; and preserve cash reserves. ] The Performance Rights are also a key component of the Company’s executive remuneration strategy. The Performance Rights will allow Directors to acquire Shares, subject to remaining engaged by the Company and based on the performance of the Company. If Performance Rights vest, the Directors are entitled to be issued with a corresponding number of Shares without being required to pay any monetary consideration. 10 5.1 Background The Company has agreed, subject to obtaining Shareholder approval to issue a maximum of 76,250,000 Performance Rights (Performance Rights) to Directors of the Company as follows: A summary of the ESOP is set out in Annexure A of this Explanatory Memorandum. In addition, a copy of the ESOP is available for review by Shareholders DW WKH UHJLVWHUHG RI²FH RI WKH Company until the date of the Meeting. A copy of the ESOP can also be sent to Shareholders upon request to the Company Secretary on +613 8412 7000. Shareholders are invited to contact the Company if they have any queries or concerns. a) 7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C Performance Rights to Dr Paul Kasian (or his nominee) - Resolution 4; 3,750,000 Class A Performance 5LJKWV WR 'U /LQGVD\ :DNH²HOG (or his nominee) - Resolution 5; 6,250,000 Class A Performance Rights to Dr George Muchnicki (or his nominee) - Resolution 6; 5,000,000 Class A Performance Rights to Mr Peter Rubinstein (or his nominee) - Resolution 7; 3,750,000 Class A Performance Rights to Mr Sam Lee (or his nominee) - Resolution 8. A summary of the terms and conditions of the Class A, Class B and Class C Performance Rights is set out in Appendix C to this Explanatory Memorandum. b) 5.2 Listing Rule 10.11 Listing Rule 10.11 requires that an entity must obtain the approval of Shareholders to issue Securities to a Related Party and in doing so must SURYLGH WKH LQIRUPDWLRQ VSHFL²HG in Listing Rule 10.13, unless an exception applies. It should be noted that no Equity Securities can be issued to a Related Party pursuant to the ESOP without additional approval pursuant to Listing Rule 10.11. c) d) A voting exclusion statement is set out in Resolution 2 in the Notice. e) 4.4 Directors Recommendation The Directors of the Company recommend that Shareholders vote in favour of this Ordinary Resolution. 5.3 Listing Rule 7.1 - Issues exceeding 15% of capital Listing Rule 7.1 prohibits a listed company, except in certain cases, from issuing in any 12 month period new Equity Securities equivalent in number to more than 15% of the total number of ordinary securities on issue at the beginning of the twelve month period (15% Capacity) without the prior approval of a majority of disinterested shareholders, or the issue otherwise comes within one The Board’s rationale for the issue of the Performance Rights is to: ] reward employees for their past performance; ] provide long term incentives for participation in the Company’s future growth;

 

of the exceptions to Listing Rule 7.1 (15% Rule). However, under Listing Rule 7.2 (Exception 14), if approval is being sought under Listing Rule 10.11, approval will not be required under Listing Rule 7.1. Therefore the Performance Rights will not count towards the Company’s 15% Capacity under Listing Rule 7.1 if each of Resolutions 4 - 8 are approved. ii) In respect of Resolution 5, 3,750,000 Class A Performance Rights to Dr /LQGVD\ :DNH²HOG (RU KLV nominee); Shareholders in a general meeting in circumstances where certain UHTXLUHPHQWV VSHFL²HG LQ &KDSWHU 2E in relation to the convening of that meeting have been met. iii) In respect of Resolution 6, 6,250,000 Class A Performance Rights to Dr George Muchnicki (or his nominee); iv) In respect of Resolution 7, 5,000,000 Class A Performance Rights to Mr Peter Rubinstein (or his nominee); and $ ©)LQDQFLDO %HQH²Wª IRU WKH purposes of the Corporations Act has a very wide meaning. It includes a public company paying money or issuing securities to the Related Party. In determining whether or not D ²QDQFLDO EHQH²W LV EHLQJ JLYHQ LW is necessary to look to the economic and commercial substance and effect of what the public company is doing (rather than just the legal form). Any consideration which LV JLYHQ IRU WKH ²QDQFLDO EHQH²W LV to be disregarded, even if it is full or adequate. 5.4 Listing Rule 10.13 For the purposes of Listing Rule 10.13 and for all other purposes the following information is provided to Shareholders: v) In respect of Resolution 8, 3,750,000 Class A Performance Rights to Mr Sam Lee (or his nominee). ] LR 10.13.1 and 10.13.4: Name and relationship of the Related Party The Related Party is: i) In respect of Resolution 4, Dr Paul Kasian as a Director of the Company, or his nominee; ii) In respect of Resolution 5, 'U /LQGVD\ :DNH²HOG DV D Director of the Company, or his nominee; iii) In respect of Resolution 6, Dr George Muchnicki as a Director of the Company, or his nominee; iv) In respect of Resolution 7, Mr Peter Rubinstein as a Director of the Company, or his nominee; and v) In respect of Resolution 8, Mr Sam Lee as a Director of the Company, or his nominee. LR 10.13.2: Maximum Number of Securities to be issued (if known) or the formula for calculating the number of Securities to be issued The maximum number of Equity Securities to be issued are 76,250,000 Performance Rights, to be issued as follows: i) In respect of Resolution 4, 7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C Performance Rights to Dr Paul Kasian (or his nominee); 11 ] LR 10.13.3: Date by which the Securities will be issued The Performance Rights will be issued within 1 month of Shareholder approval of Resolutions 4, 5, 6, 7 and 8. The Performance Rights will be issued progressively. LR 10.13.4: Issue price and terms of the Securities The Performance Rights are being issued for no cash consideration and are to be issued on the terms set out in Appendix C. Shares issued on exercise of the Performance Rights will rank pari passu with all of the other fully paid ordinary shares on issue in the Company. 10.13.6A: Intended use of funds raised No funds are being raised by the issue of the Performance Rights. The proposed Resolutions 4, 5, 6, 7 and 8, if passed, will confer )LQDQFLDO %HQH²WV QDPHO\ WKH LVVXH of securities to Directors who are Related Parties of the Company. Accordingly, the Company seeks to obtain Shareholder approval in respect of the Directors in accordance with the requirements of Chapter 2E of the Corporations Act. ] For the purposes of Chapter 2E of the Corporations Act and for all other purposes the following information is provided to Shareholders: ] The Related Party to whom Resolutions 4, 5, 6, 7 and 8 would permit the Financial %HQH²W WR EH JLYHQ (VHFWLRQ 219(1)(a)) ] ] i) In respect of Resolution 4, Dr Paul Kasian as a Director of the Company, or his nominee; In respect of Resolution 5, 'U /LQGVD\ :DNH²HOG DV D Director of the Company, or his nominee; ii) 5.5 Corporations Act Chapter 2E of the Corporations Act prohibits a public company IURP JLYLQJ D )LQDQFLDO %HQH²W WR D Related Party of the public company XQOHVV SURYLGLQJ WKH EHQH²W IDOOV within a prescribed exception to the general prohibition. Relevantly, there is an exception if the company ²UVW REWDLQV WKH DSSURYDO RI LWV NOTICE OF AGM 2018

 

] iii) In respect of Resolution 6, Dr George Muchnicki as a Director of the Company, or his nominee; iv) In respect of Resolution 7, Mr Peter Rubinstein as a Director of the Company, or his nominee; and v) In respect of Resolution 8, Mr Sam Lee as a Director of the Company, or his nominee. The nature of the Financial %HQH²W (VHFWLRQ 21 (1)(E)) The nature of the Financial %HQH²W LV WKH LVVXH RI 5HODWHG Party Performance Rights as follows: Directors’ Interest and other remuneration (section 219(1)(d)) The following Directors have a material personal interest in the outcome of Resolutions 4, 5, 6, 7 and 8: 20,903,244 Shares and 6,666,667 Options. Other than the 6,250,000 Class A Performance Rights to be issued to Dr Muchnicki (or his nominee) pursuant to Resolution 6, Dr Muchnicki currently receives $102,000 per annum as Business Development and Executive Director of the Company; iv) In respect of Resolution 7, it is proposed that Mr Peter Rubinstein (or his nominee) will receive 5,000,000 Class A Performance Rights to Mr Peter Rubinstein. Mr Rubinstein (and entities associated with him) currently holds 47,282,700 Shares. Other than the 5,000,000 Class A Performance Rights to be issued to Mr Rubinstein (or his nominee) pursuant to Resolution 7, Mr Rubinstein currently receives $73,871 per annum as a Non-Executive Director of the Company; and i) In respect of Resolution 4, it is proposed that Dr Kasian (or his nominee) will receive 7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C Performance Rights.. Dr Kasian (and entities associated with him) currently holds 256,410 Shares. Other than the 7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C Performance Rights to be issued to Dr Kasian (or his nominee) pursuant to Resolution 4, Dr Kasian currently receives $153,000 per annum as Chairman and Interim Chief Executive 2I²FHU RI WKH &RPSDQ\; In respect of Resolution 5, it is proposed that Dr Lindsay :DNH²HOG (RU KLV QRPLQHH) will receive 3,750,000 Class A Performance 5LJKWV. 'U :DNH²HOG (and entities associated with him) currently holds 8,325,263 Shares. Other than the 3,750,000 Class A Performance Rights to be LVVXHG WR 'U :DNH²HOG (RU his nominee) pursuant to 5HVROXWLRQ 5 'U :DNH²HOG currently receives $73,871 per annum as a Non-Executive Director of the Company; ] i) In respect of Resolution 4, 7,500,000 Class A Performance Rights, 25,000,000 Class B Performance Rights and 25,000,000 Class C Performance Rights to Dr Paul Kasian (or his nominee); In respect of Resolution 5, 3,750,000 Class A Performance Rights to 'U /LQGVD\ :DNH²HOG (RU KLV nominee); 12 ii) v) In respect of Resolution 8, it is proposed that Mr Sam Lee (or his nominee) will receive 3,750,000 Class A Performance Rights to Mr Sam Lee. Mr Lee (and entities associated with him) currently holds 59,594,850 Shares. Other than the 3,750,000 Class A Performance Rights to be issued to Mr Lee (or his nominee) pursuant to Resolution 8, Mr Lee currently receives $63,871 per annum as a Non-Executive Director of the Company. iii) In respect of Resolution 6, 6,250,000 Class A Performance Rights to Dr George Muchnicki (or his nominee); iv) In respect of Resolution 7, 5,000,000 Class A Performance Rights to Mr Peter Rubinstein (or his nominee); and v) In respect of Resolution 8, 3,750,000 Class A Performance Rights to Mr Sam Lee (or his nominee). Directors’ Recommendation (section 219(1)(c)) As each of the Directors is a recipient of the Performance Rights, all Directors abstain from making a recommendation in respect of Resolutions 4, 5, 6, 7 and 8. ii) ] If all of the Performance Rights are issued, they will have the following effect on each Director’s holdings in the Company and the dilutionary impact on current Shareholders of the Company: iii) In respect of Resolution 6, it is proposed that Dr George Muchnicki (or his nominee) will receive 6,250,000 Class A Performance Rights. Dr Muchnicki (and entities associated with him) currently holds

 

% of Total Share Capital on exercise of Performance Rights 1, 2, 3 % of Total Share Capital Shares on issue 1, 2 Shares held upon exercise of Performance Rights Current Share Holding Shareholder Current Shareholders (other than the relevant Directors) 2,849,408,361 95.43% 2,849,408,361 93.06% Dr Paul Kasian 256,410 0.01% 57,756,410 1.89% 'U /LQGVD\ :DNH²HOG 8,325,263 0.281% 12,075,263 0.39% Dr George Muchnicki 20,903,244 0.70% 27,153,244 0.89% Mr Peter Rubinstein 47,282,700 1.58% 52,282,700 1.71% Mr Sam Lee 59,594,850 2.00% 63,344,850 2.07% Total 2,985,770,828 100% 3,062,020,828 100.00% Notes: 1. 2. 3. The table above assumes that no other Shares are issued; Including any Shares held by each Director (and entities associated with each Director Assumes all Performance Rights are fully exercised. 13 ] Valuation of Performance Rights The Performance Rights are not currently quoted on the ASX and as such have no ready market value. The Performance Rights each grant the holder a right of grant of one ordinary Share in the Company upon vesting of the Performance Rights for nil consideration. Accordingly, the Performance Rights may have a present value at the date of their grant. Various factors impact upon the value of Performance Rights including: the period outstanding before the expiry date of the Performance Rights; the underlying price or value of the securities into which they may be converted; the proportion of the issued capital as expanded consequent upon conversion of the Performance Rights into Shares (i.e. whether or not the shares that might be acquired upon exercise of the options represent D FRQWUROOLQJ RU RWKHU VLJQL²FDQW interest); and d) the value of the shares into which the Performance Rights may be converted. There are various formulae which can be applied to determining the theoretical value of options (including the formula known as the Black-Scholes Model valuation formula and the Monte Carlo simulation). The Company has commissioned an independent valuation of the Performance Rights, for the purposes of disclosing to Shareholders such information required to decide whether or not it is in the Company’s interest to pass Resolutions 4, 5, 6, 7 and 8. The independent valuer has applied the Monte Carlo simulation in providing the valuation of the Performance Rights. As the Performance Rights have market event hurdles for vesting, the valuation has been provided with a range of underlying share prices. Inherent in the application of the Monte Carlo simulation are a number of inputs, some of which must be assumed. The data relied upon in applying the Monte Carlo simulation was: a) a range of prices analysed from 0.5 cents per share to 1.5 cents per share (being an approximate 50% discount to a 50% premium) from GTG’s current share price of 1.1 cents per share as at 5 October 2018 for all classes of Performance Rights; exercise price being 0.0 cents per Performance Right for all classes; VWAP hurdle (10 days consecutive share price hurdle) equalling 2.0 cents for Class A and Class B and 3.3 cents for Class C Performance Rights; the continuously compounded risk free rate being 2.02% for all classes of Performance Rights (calculated with reference to the RBA quoted Commonwealth Government bonds as at 8 October 2018 of similar duration to that of the expected life of each class of Perfromance Right); the expected option life of 2.8 years for all classes of Performance Rights; and a volatility measure of 80%. b) c) a) d) b) c) e) f) NOTICE OF AGM 2018

 

Based on the independent valuation of the Performance Rights, the Company agrees that the total value of the Performance Rights to be issued to each Director (depending on the share price at issue) is as follows: Share price at issue (cents) Valuation per Option (cents) Exercise price (cents) Expiry (years) Life (years) Class Volatility Risk free rate Class A and B Performance Rights 0.0 3 2.8 80% 2.02% 0.5 0.26 0.75 0.50 1.0 0.77 1.25 1.04 1.5 1.34 Class C Performance Rights 0.0 3 2.8 80% 2.02% 0.5 0.16 0.75 0.36 1.0 0.57 1.25 0.83 1.5 1.10 Valuation of Class A Performance Rights 14 Share price at issue (cents) Valuation per Class A (cents) Class A Performance Rights Dr Paul Kasian 0.5 0.26 $19,500.00 0.75 0.5 $37,500.00 1 0.77 $57,750.00 1.25 1.04 $78,000.00 1.5 1.34 $100,500.00 'U /LQGVD\ :DNH²HOG 0.5 0.26 $9,750.00 0.75 0.5 $18,750.00 1 0.77 $28,875.00 1.25 1.04 $39,000.00 1.5 1.34 $50,250.00 Dr George Muchnicki 0.5 0.26 $16,250.00 0.75 0.5 $31,250.00 1 0.77 $48,125.00 1.25 1.04 $65,000.00 1.5 1.34 $83,750.00 Mr Peter Rubinstein 0.5 0.26 $13,000.00 0.75 0.5 $25,000.00 1 0.77 $38,500.00 1.25 1.04 $52,000.00 1.5 1.34 $67,000.00 Mr Sam Lee 0.5 0.26 $9,750.00 0.75 0.5 $18,750.00 1 0.77 $28,875.00 1.25 1.04 $39,000.00 1.5 1.34 $50,250.00

 

Valuation of Class B Performance Rights Share price at issue (cents) Valuation per Class B (cents) Class B Performance Rights Dr Paul Kasian 0.5 0.26 $65,000.00 0.75 0.5 $125,000.00 1 0.77 $192,500.00 1.25 1.04 $260,000.00 1.5 1.34 $335,000.00 Valuation of Class C Performance Rights Share price at issue (cents) Valuation per Class C (cents) Class C Performance Rights Dr Paul Kasian 0.5 0.16 $40,000.00 0.75 0.36 $90,000.00 1 0.57 $142,500.00 1.25 0.83 $207,500.00 1.5 1.1 $275,000.00 15 ]Any other information that is reasonably required by Shareholders to make a decision and that is known to the Company or any of its Directors (section 219(1)(e) and 219(2)) There is no other information known to the Company or any of its Directors relevant to Resolutions 4, 5, 6, 7 and 8 save and except as follows: the VWAP per Share over the 12 month period prior to 5 October 2018 was $0.0133. GST as the issue of Performance 5LJKWV LV UHJDUGHG DV D ²QDQFLDO supply for GST purposes. The GST on any costs incurred by the Company in respect of the issue of the Performance Rights are QRW FODLPDEOH XQOHVV WKH ²QDQFLDO acquisitions threshold is not breached or those costs qualify as a reduced credit acquisition. The trading price of the Shares on the close of trading on 5 October 2018 was $0.012. 3. Opportunity Costs 7KH RSSRUWXQLW\ FRVWV DQG EHQH²WV foregone by the Company issuing the Performance Rights is the dilutionary impact on the issued share capital of the Company on conversion of the Performance Rights. To the extent that the dilutionary impact caused by the issue of the Performance Rights will be detrimental to the Company, this is more than offset by the advantages accruing from the Company securing the services of an experienced Directors on appropriate remuneration terms and conserving the cash resources of the Company in this regard. The Company is not able to claim an income tax deduction in respect of the issue of the Performance Rights. 1. Market Price movements The valuation of the Performance Rights noted above is based on a Market Price of the Shares. The Company is not liable to any duty in respect of the issue of the Performance Rights. There is a possibility that the Market Price of the Shares on the date of issue of the Performance Rights and the Market Price of the Shares on exercise of the Performance Rights will be different to the price noted above and that the Market Price of the Shares will change up to the date of the Meeting. 5. Dilutionary Effect The effect that the issue of the Performance Rights will have on the issued Shares of the Company is set out above. Save as set out in this Explanatory Memorandum, the Directors are not aware of any other information that will be reasonably required by Shareholders to make a GHFLVLRQ LQ UHODWLRQ WR WKH EHQH²WV contemplated by Resolutions 4, 5, 6, 7 and 8. It is also considered that the potential increase of value in the securities is dependent upon a corresponding increase in the value of the Company and its Shares generally. 2. Trading history In the 12 months prior to 5 October 2018, the Company’s trading history is as follows: ] the highest trading price was $0.021 on 8 January 2018; the lowest trading price was $0.007 on 31 October 2017 and A voting exclusion statement is set out in each of Resolutions 4, 5, 6, 7 and 8 in the Notice. 4. Taxation Consequences The granting of the Performance Rights should not be subject of ] NOTICE OF AGM 2018

 

6. RESOLUTION 9: APPROVAL OF STANDBY EQUITY PLACEMENT FACILITY (KENTGROVE CAPITAL GROWTH FUND) The issue price of the Shares in respect of a placement under the Kentgrove Facility is the higher of the minimum issue price set by the Company and a 4.5% discount to a VWAP of the Shares traded by Kentgrove over the placement period. The relevant placement period must be a minimum of 4 weeks unless the parties agree otherwise. with cause, in accordance with the WHUPLQDWLRQ SURYLVLRQV DV GH²QHG within the Kentgrove Facility. On entry into the Kentgrove Facility, the Company issued: 6.1 Background As announced on 8 August 2018, the Company has entered into a $20 million equity placement facility with Kentgrove Capital Pty Ltd ACN 150 638 627 in its capacity as trustee of the Kentgrove Capital Growth Fund (Kentgrove), to strengthen the Company’s funding position (Kentgrove Facility). The purpose of the Facility is to provide the Company with funds for working capital, to facilitate the introduction and commercialisation of an enhanced breast cancer and new colon cancer screening test, progress development of a suite of genetic screening tests targeting both cancer and non-oncological diseases and facilitate investments in opportunities that combine genetic screening capabilities with blockchain technology. a) An upfront establishment IHH VDWLV²HG E\ WKH LVVXH WR Kentgrove of 8,833,100 shares and 12,500,000 3-year options with an exercise price per option of $0.0153; and 100,000,000 collateral shares as security for the Facility. Upon termination or expiration of the Kentgrove Facility, any outstanding collateral shares will be, at the Company’s election, sold by Kentgrove and the proceeds returned to the Company (less a discount of 4.5%) or bought back by the &RPSDQ\ IRU D QRPLQDO ²JXUH. At the end of each placement period (unless requested earlier by the Company), Kentgrove nominates the actual number of Shares it elects to subscribe for (which cannot be more than the maximum amount of the placement) and the issue price (which cannot be less than the minimum issue price). The Company must then issue such number of Shares contemporaneously with payment of the issue price by Kentgrove. b) 16 5HVROXWLRQ 10 VHHNV UDWL²FDWLRQ RI these issues by Shareholders. Any issues of shares or options under the Kentgrove Facility is required to be in compliance with ASX Listing Rule 7.1. Any shares issued pursuant to the Kentgrove Facility must be offered under a prospectus issued pursuant to section 710 or 713 of the Corporations Act, unless otherwise agreed by Kentgrove. Kentgrove has given an undertaking to the Company that it will not, during the 3 months following the execution of the Kentgrove Facility, exercise the Establishment Options or dispose of the Establishment Shares issued under the Facility, the issue of which is the subject of Resolution 10. Resolution 9 seeks the approval of Shareholders for the issue by the Company of a maximum of $20,000,000 worth of Shares to Kentgrove, pursuant to the Kentgrove Facility. The provision of funding by Kentgrove in relation to a placement request is subject to a number of conditions including there being VXI²FLHQW OLTXLGLW\ LQ WKH PDUNHW IRU the Shares during the applicable placement period, the market price being no lower than the minimum issue price set by the Company and other conditions customarily included in facilities of this nature. The Kentgrove Facility provides the Company with access to an equity placement facility of up to $20,000,000. For each new placement, the Company nominates the relevant placement period, the maximum amount of the placement (up to $1,000,000, or an amount equal to the total number of Collateral Shares on issue multiplied by the minimum issue price, or a higher amount as agreed between the parties) and the minimum issue price. 6.2 Listing Rule 7.1 Subject to certain exceptions, Listing Rule 7.1 prohibits a listed company, from issuing or agreeing to issue in any 12 month period new Equity Securities equivalent in number to more than 15% of the total number of ordinary securities on issue at the beginning of the twelve month period (15% Capacity) without either the prior approval of a majority of disinterested shareholders, or the issue otherwise falls within one of the prescribed exceptions to Listing Rule 7.1 (15% Rule). The Kentgrove Facility will run for 20 months unless terminated sooner, meaning it has a maturity date of 7 April 2020 (Term). Kentgrove must not acquire a relevant interest in the Shares which causes their voting power (and that of their associates) to exceed 19.99%. Either the company or Kentgrove may terminate the Kentgrove Facility, by giving 14 days notice, RWKHU WKDQ GXULQJ WKH ²UVW 0 GD\V of the Kentgrove Facility during which it may only be terminated

 

 

7. RESOLUTION 10: RATIFICATION OF ISSUES UNDER THE KENTGROVE FACILITY Equity Securities issued with shareholder approval under ASX Listing Rule 7.1 do not count towards the 15% Capacity. Resolution 9 will be issued at an issue price per Share of not less than 80% of the VWAP of the Shares calculated over the last 5 days on which sales in the Shares were recorded before the day on which the Further Shares are issued. the names of the allottees or the basis upon which the allottees were determined: The Facility Shares will be issued to Kentgrove. the terms of the securities: Facility Shares to be issued will be fully paid ordinary shares ranking equally in all respects with all other fully paid ordinary shares then on issue in the Company. the intended use of the funds raised: Therefore the Company is seeking Shareholder approval in accordance with Listing Rule 7.1 to issue up to $20,000,000 worth of Facility Shares under the Kentgrove Facility, so that the issue of those Shares do not count towards the Company’s 15% Capacity. 7.1 Background 5HVROXWLRQ 10 VHHNV WKH UDWL²FDWLRQ of Shareholders of the issue of Establishment Shares, Establishment Options and Collateral Shares, issued to Kentgrove under the Kentgrove Facility. The terms of the Kentgrove Facility are set out in the Explanatory Memorandum text for Resolution 9 above. d) 6.3 Information required under ASX Listing Rules 7.1 For the purposes of Listing Rule 7.3 and for all other purposes the following information is provided to Shareholders: e) Under a prospectus of the Company dated 8 August 2018 and as consideration for the provision of the Kentgrove Facility, the Company issued 8,833,100 Shares (Establishment Shares) to Kentgrove in lieu of payment of an establishment fee of $100,000 (Establishment Fee). 17 a) the maximum number of securities the Company is to issue: The maximum number of Facility Shares to be issued by the Company will be calculated by dividing the Maximum Facility limit of $20,000,000 by the Issue Price as described below. the date by which the securities will be issued: The Facility Shares will be issued within 3 months of the date of Shareholder approval of this Resolution 9, after which the Company will need to rely on its available capacity under Listing Rule 7.1 to allot any further Shares pursuant to the Kentgrove Facility or seek further Shareholder approval. The Facility Shares will be issued progressively. the issue price of securities: Shares issued under the Kentgrove Facility will be issued at a price that is the higher of the minimum issue price set by the Company, or a 4.5% discount to a VWAP of the Shares traded by Kentgrove over the placement period. Any Facility Shares issued in reliance on this f) If the Facility Shares are allotted, the funds raised will be used by the Company for general working capital purposes, and to: Additionally, under the prospectus dated 8 August 2018, as security for the performance by the Company of its obligations under the Kentgrove Facility, the Company issued 100,000,000 Shares (Collateral Shares) to Kentgrove. The Collateral Shares may be sold or otherwise dealt with by Kentgrove to satisfy any undischarged obligation of the Company under the Kentgrove Facility (which remains undischarged after 5 Business Days notice). In addition, if the Company is not able to issue freely tradeable Shares on a relevant issue date, Kentgrove may elect to offset against the Collateral Shares any new placement Shares that were to be issued to it on such issue date. Further, Kentgrove may dispose of the Collateral Shares for any reason and in any way during the term for the Kentgrove Facility. ] commercialise existing R&D capabilities, IP and introduce an enhanced BREVAGenplus breast cancer risk assessment test and a colon cancer risk assessment test; progress development of a suite of genetic screening tests targeting both cancer and non-oncological diseases utilising the latest technology and platforms, and explore and capitalise on Blockchain opportunities in the medical and biotech industries. b) ] ] c) A voting exclusion statement is set out in Resolution 9 in the Notice. 6.4 Directors’ recommendation The Directors of the Company consider that Resolution 9 is in the best interests of the Company and recommend that Shareholders vote in favour of this Ordinary Resolution. NOTICE OF AGM 2018

 

On expiration of the Kentgrove Facility, any remaining Collateral Shares not offset to satisfy an undischarged obligation of the Company or otherise against the Company’s obligation to deliver Shares under the Kentgrove Facility, at the Company’s election, are either to be sold by Kentgrove and the proceeds (less a discount of 4.5%) delivered to the Company, or are able to be brought back by the &RPSDQ\ RQ WKH WHUPV VSHFL²HG E\ the Company. 7.3 Information Required under Listing Rule 7.5 For the purposes of Listing Rule 7.5 and for all other purposes the following information is provided to Shareholders: ii) progress development of a suite of genetic screening tests targeting both cancer and non-oncological diseases utilising the latest technology and platforms, and iii) explore and capitalise on Blockchain opportunities in the medical and biotech industries. a) The number of securities issued: i) 8,833,100 Establishment Shares; 100,000,000 Collateral Shares; and ii) 7.4 Directors’ Recommendation The Directors of the Company consider that Resolution 10 is in the best interests of the Company and recommend that Shareholders vote in favour of this Ordinary Resolution. iii) 12,500,000 Establishment Options, exercisable at $0.0153 each and expiring 3 years after issue. Price at which the securities were issued: The Establishment Shares, Establishment Options and Collateral Shares were all issued for nil cash consideration. Terms of the securities: The Establishment Shares and Collateral Shares will rank parri passu with all other Shares on issue. The terms of Establishment Options are set out in Annexure B of this Explanatory Memorandum. Names of the persons to whom the entity issued the securities or the basis on which those persons were determined: The Establishment Shares, Establishment Options and Collateral Shares were issued to Kentgrove. The use (or intended use) of the funds raised. The Establishment Shares, Establishment Options and Collateral Shares were all issued for nil cash consideration. Any funds raised on the exercise of the Establishment Options will be used by the Company for general working capital purposes, and to: i) commercialise existing R&D capabilities, IP and introduce an enhanced BREVAGenplus breast cancer risk assessment test and a colon cancer risk assessment test; The Company also issued under the prospectus dated 8 August 2018, 12,500,000 Options to Kentgrove exercisable at $0.0153 each and expiring three years from the date of issue (Establishment Options). The terms of the Establishment Options are set out in Annexure B to this Explanatory Memorandum. The Establishment Shares, the Establishment Options and the Collateral Shares were all issued on 8 August 2018 to Kentgrove. b) 8. RESOLUTION 11: APPROVAL OF STRATEGIC ALLIANCE AND ISSUE OF MILESTONE SHARES TO BLOCKCHAIN GLOBAL LIMITED 18 c) 8.1 Background As announced on 15 February 2018, the Company entered into a non-binding term sheet with Blockchain Global Limited (BCG) which outlined a proposed strategic alliance between the Company and BCG with respect to the provision of a suite of blockchain opportunities for GTG to leverage GTG’s existing Genetic Testing Platform, existing CLIA approved laboratory and long history in Genomics and a proposed issue of 486,000,000 shares to BCG subject to the achievement of certain milestones (Term Sheet). It was intended that the non-binding term sheet would provide a framework for continued discussions and ultimately promote an agreement regarding potential medical and biotech blockchain applications being reached. As announced on 2 August 2018, a binding Framework Agreement has been entered by the Company and BCG and the proposed strategic alliance has been formalised on the terms set out below. 7.2 Listing Rules 7.1 and 7.4 Listing Rule 7.1 provides that a company must not, subject to VSHFL²HG H[FHSWLRQV, LVVXH RU DJUHH to issue more equity securities during any 12 month period than that amount which represents 15% of the number of fully paid ordinary securities on issue at the commencement of that 12-month period. d) Listing Rule 7.4 provides that where a company in a general PHHWLQJ UDWL²HV WKH SUHYLRXV LVVXH of securities made pursuant to Listing Rule 7.1 (and provided that the previous issue did not breach Listing Rule 7.1) those securities will be deemed to have been made with shareholder approval for the purpose of Listing Rule 7.1. e) Shareholder approval is sought under Resolution 10 for all purposes including ASX Listing Rule 7.4. By passing Resolution 10, the issue of securities will be treated as having been issued with approval for the purpose of Listing Rule 7.1.

 

Resolution 11 seeks the approval of Shareholders of the commencement of the Framework Agreement as well as the issue of up to 486,000,000 Milestone Shares in the Company to BCG, on the terms set out below. b) BCG to assist with utilisation of the existing Genetic Testing Platform and existing CLIA approved laboratory to support a USA DNA genomic data platform utilising blockchain technology to enable rapid collection and dissemination of genomic data to big pharma, researchers and the general public for personalised medicine and health initiatives; BCG to assist with the outsourcing by GTG of development of blockchain based solutions to tackle the estimated $200 billion a year loss by big pharma as a result of global drug counterfeiting; and Establishment of a division within GTG incorporating a Blockchain accelerator and seed investment arm focussing on the biotech and medical markets. A Pursued Opportunity will be deemed to be a ‘Commenced Opportunity’ upon: a) The entry by GTG and the counterparty to the Pursued Opportunity of a legally binding agreement for the commercialisation of the Pursued Opportunity (Pursued Binding Agreement); GTG having obtained all Shareholder Approval and all required regulatory approvals to permit the performance by GTG of its obligations under the Pursued Binding Agreement; The satisfaction of all pre-conditions under the Pursued Binding Agreement; and The entry into a binding agreement with BCG in respect of any services, duties or obligations to be assumed by BCG in respect of the Pursued Binding Agreement. 8.2 Framework Agreement The Company and BCG have entered the Framework Agreement, however, the commencement of the Framework Agreement and the issue of the Milestone Shares are subject to Shareholder approval. b) c) In formalising the proposed strategic alliance between the Company and BCG, the Framework Agreement sets out various obligations to be met by BCG, in order for BCG to reach milestones that then entitle BCG to the Milestone Shares. BCG must use its best endeavours to identify and introduce to GTG an ongoing pipeline of blockchain opportunities in (or with application in) the medical and biotech industries (Blockchain Opportunity). For each Blockchain Opportunity, BCG must provide full details of the Blockchain Opportunity in writing for GTG’s consideration, facilitate an introduction with key persons involved with the Opportunity and promptly respond to any queries that GTG may raise. c) 19 d) d) The Board will promptly consider each Blockchain Opportunity presented to them and the Company has complete discretion when considering whether to pursue a Blockchain Opportunity. The Company will promptly advise BCG of whether the Board has resolved to pursue the Blockchain Opportunity presented (referred to as a ‘Pursued Opportunity’) or not to pursue the Blockchain Opportunity presented. To the extent that a Pursued Opportunity involving BCG or a related entity involves the incorporation of any existing intellectual property rights into any new intellectual property rights developed as part of a Pursued Opportunity, then BCG shall grant (and shall procure its related entities to grant) the Company a non-exclusive, perpetual, irrevocable, royalty free worldwide licence to the existing intellectual property rights. Further, in the event that a Pursued Opportunity involving BCG or a related entity results in the development or creation of any new intellectual property rights, all new intellectual property rights will be owned (on creation) by, and vest in, the Company where the Company is the sole party involved in the Pursued Opportunity. Blockchain Opportunities may cover a diverse array of opportunities utilising blockchain technology in (or with application in) the medical and biotech industries including (without limitation): a) strategic alliances or partnerships with third parties to collaborate on or develop bloackchain solutions for the medial and biotech industries utilising laboratory or clinical datasets; After notifying BCG of a Pursued Opportunity, the parties will work together in good faith and GTG may (in its sole discretion) propose to the counterparty to the Pursued Opportunity, the possible terms on which those parties may seek to undertake commercialisation of the Pursued Opportunity. (Relevant Agreement). NOTICE OF AGM 2018

 

8.3 Milestone Shares The Milestone Shares are to be issued subject to Shareholder approval and certain Milestones being achieved. These Milestones are based on the Board commencing a Blockchain Opportunity presented by BCG as well as GTG’s Share performance on the ASX. Subject to approval at the Meeting and such issue not resulting in a breach of Chapter 6 of the Corporations Act or otherwise requiring Shareholder approval under Item 7 of Section 611 of the Corporations Act, the following Shares will be issued to BCG (or its nominee) following the achievement of each of the following respective milestones: Under the Corporations Act, a ‘related party’ of a public company includes a director of a company and their spouse, parents and children, any entities controlled by such persons and an entity that controls the entity. ordinary securities on issue at the beginning of the twelve month period (15% Capacity) without the prior approval of a majority of disinterested shareholders, or the issue otherwise comes within one of the exceptions to Listing Rule 7.1 (15% Rule). However, under Listing Rule 7.2 (Exception 14), if approval is being sought under Listing Rule 10.11, approval will not be required under Listing Rule 7.1. Therefore the Performance Rights will not count towards the Company’s 15% Capacity under Listing Rule 7.1 if this Resolution 11 is approved. A number of Directors of the Company presently or previously have had involvement with BCG. Sam Lee has a direct and indirect share interest in BCG of 21% and is a director of BCG. Peter Rubinstein has a direct and indirect share interest in BCG of 8% and is a director of BCG. George Muchnicki has a direct and indirect share interest in BCG of 3.4%. Paul Kasian was previously a director of BCG, however is no longer a director of BCG and holds no shareholding interest in BCG. Given the interests of various Directors with BCG, for good corporate governance reasons, the Company has historically sought to apply the related party standards to any transaction with BCG, regardless of whether or not BCG is in fact technically a related party of the Company. For this reason, details of the arrangements with BCG are set out above and the Company is seeking Shareholder approval to the commencement of the Framework Agreement and the issue of the Milestone Shares, regardless of whether or not BCG is in fact technically a related party of the Company. 8.7 Listing Rule 10.13 Listing Rule 10.13 sets out the requirements for a notice of meeting to approve the issue of shares under Listing Rule 10.11. 20 a) 162,000,000 Shares will be issued upon GTG’s Share trading price reaching 2.5c or above on the ASX for a period of 10 consecutive ASX trading days, and subject to one Blockchain Opportunity becoming a Commenced Opportunity on or before 27 December 2019 (Milestone One); 162,000,000 Shares will be issued upon GTG’s Share trading price reaching 3c or above on the ASX for a period of 10 consecutive ASX trading days, and subject to a second Blockchain Opportunity becoming a Commenced Opportunity on or before 27 March 2020 (Milestone Two); 162,000,000 Shares will be issued upon GTG’s Share trading price reaching 3.5c or above on the ASX for a period of 10 consecutive ASX trading days, and subject to a third Blockchain Opportunity becoming a Commenced Opportunity on or before 27 June 2020 (Milestone Three). For the purposes of Listing Rule 10.13 and for all other purposes the following information is provided to Shareholders in respect of Resolution 11: a) Name and Relationship of the Related Party: BCG (or its nominee). Given the interests of various Directors with BCG (details of which are set out above), for good corporate governance reasons, the Company has historically sought to apply the Related Party standards to any transaction with BCG, regardless of whether or not BCG is in fact technically a Related Party of the Company. As at the date of this Notice however, BCG holds no Shares in the Company. Maximum number of securities to be issued (if known) or the formula for calculating the number of Securities to be issued: The maximum number of securities to be issued is 486,000,000 Milestone Shares. b) 8.5 Listing Rule 10.11 Listing Rule 10.11 requires that an entity must obtain the approval of Shareholders to issue Securities to a Related Party and in doing so must SURYLGH WKH LQIRUPDWLRQ VSHFL²HG in Listing Rule 10.13, unless an exception applies. c) b) 8.6 Listing Rule 7.1: Issues exceeding 15% of capital Listing Rule 7.1 prohibits a listed company, except in certain cases, from issuing in any 12 month period new Equity Securities equivalent in number to more than 15% of the total number of 8.4 Related Party Under the Listing Rules, a ‘related party’ has the meaning given under the Corporations Act.

 

c) Date by which the Milestone Shares will be issued: The Company will issue the Milestone Shares within one month of approval of Resolution 11. As the Milestone Shares may only be issued upon certain Milestones being met, it is possible that the Milestone Shares may be issued later than one month after the Meeting. As such, the Company has made an application to ASX for a waiver of Listing Rule 10.13.3 extending the period in which the Company may issue the Milestone Shares from the usual one month period following the Meeting to a period ending on 27 July 2020. In the event that this waiver is granted, the Company may issue the Milestone Shares in reliance on this waiver without seeking further shareholder approval. In the event this waiver is not approved, the Company will not be able to issue the Milestone Shares more than one month after this Meeting unless further shareholder approval is obtained. Issue price and terms of the Milestone Shares: The Milestone Shares will be issued for nil cash consideration, as they will be issued on the achievement of the Milestones. Each Milestone Share will rank, on and from issue, in all respects pari passu with the then existing Shares. Intended use of funds raised: No funds will be raised by the issue of the Milestone Shares. 8.8 Chapter 2E of the Corporations Act Chapter 2E of the Corporations Act prohibits a public company IURP JLYLQJ D )LQDQFLDO %HQH²W WR D Related Party of the public company XQOHVV SURYLGLQJ WKH EHQH²W IDOOV within a prescribed exception to the general prohibition. Relevantly, there is an exception if the company ²UVW REWDLQV WKH DSSURYDO RI LWV Shareholders in a general meeting in circumstances where certain UHTXLUHPHQWV VSHFL²HG LQ &KDSWHU 2E in relation to the convening of that meeting have been met. For the purposes of Chapter 2E of the Corporations Act and for all other purposes the following information is provided to Shareholders: a) The Related Party to whom Resolution 2 would permit the )LQDQFLDO %HQH²W WR EH JLYHQ (section 219(1)(a)) BCG (or its nominee) Given the interests of various Directors with BCG (details of which are set out above), for good corporate governance reasons, the Company has historically sought to apply the Related Party standards to any transaction with BCG, regardless of whether or not BCG is in fact technically a Related Party of the Company. The nature of the Financial %HQH²W (VHFWLRQ 219(1)(E)) Framework Agreement $ ©)LQDQFLDO %HQH²Wª IRU WKH purposes of the Corporations Act has a very wide meaning. It includes a public company paying money or issuing securities to the Related Party. In determining whether or not D ²QDQFLDO EHQH²W LV EHLQJ JLYHQ, LW is necessary to look to the economic and commercial substance and effect of what the public company is doing (rather than just the legal form). Any consideration which LV JLYHQ IRU WKH ²QDQFLDO EHQH²W LV to be disregarded, even if it is full or adequate. 21 b) The nature of the proposed )LQDQFLDO %HQH²W LV WKH commencement of the Framework Agreement which provides for the issue of the Milestone Shares in certain circumstances. Milestone Shares This proposed Resolution 11, if passed, will confer )LQDQFLDO %HQH²WV, QDPHO\, WKH commencement of the Framework Agreement and the issue of the Milestone Shares, on BCG. Given the interests of various Directors with BCG (details of which are set out above), for good corporate governance reasons, the Company has historically sought to apply the Related Party standards to any transaction with BCG, regardless of whether or not BCG is in fact technically a Related Party of the Company. For this reason the Company seeks to obtain Shareholder approval in respect of the Framework Agreement and the Milestone Shares in accordance with the requirements of Chapter 2E of the Corporations Act. d) The nature of the proposed )LQDQFLDO %HQH²W LV WKH LVVXH RI Milestone Shares. The Milestone Shares are to be granted in order to provide appropriate incentive for BCG to introduce and assist the Company in pursuing and ultimately securing Blockchain Opportunities. In providing Blockchain Opportunities to the Company, BCG will assist the Company to access increased services and market opportunities across the biomedical landscape and ultimately to enhance Shareholder value in the Company. BCG will be instrumental in the Company’s implementation of Blockchain Opportunities, demonstrating the value of their assistance to the Company. e) NOTICE OF AGM 2018

 

The Board considers the number of Milestone Shares (486,000,000) to be appropriate in all circumstances, particularly as the Milestone Shares are split into three groups of 162,000,000 Shares and having regard to requirement of a Blockchain Opportunity becoming a Commenced Opportunity before each group of Milestone Shares are issued. In addition, it is also noted, that if all Milestone Shares are issued, they would represent 16.63% of Shares on issue (based on the current number of Shares on issue and disreqarding and issues pursuant to the Placement). Refer also to details above and 4(c) below for the reasons for JLYLQJ WKH EHQH²W DQG WKH EDVLV for which it is given. c) Directors’ Recommendation (section 219(1)(c)) 'U /LQGVD\ :DNH²HOG FRQVLGHUV that Resolution 11 is in the best interests of the Company and recommend that Shareholders vote in favour of this Ordinary Resolution. Dr Paul Kasian, Dr George Muchnicki, Mr Peter Rubinstein and Mr Sam Lee each abstain from making a recommendation on Resolution 11 given they each have (or have previously had) an interest in BCG. Directors’ Interest and other remuneration (section 219(1)(d)) The Directors of GTG have the following shareholdings and interests in BCG: e) Valuation of Framework Agreement and Milestone Shares Framework Agreement d) The nature of the proposed )LQDQFLDO %HQH²W LV WKH commencement of the Framework Agreement which will ultimately provide for the issue of the Milestone Shares. Milestone Shares i) Sam Lee – 21% shareholder, founder and current director; Peter Rubinstein – 8% shareholder and director; ii) Shares in the same class as the Milestone Shares are currently quoted on the ASX and as such will have a tradeable market value. Information regarding the indicative market value of the Milestone Shares the subject of Resolution 11 is set out in the table below based on the following: iii) George Muchnicki – 3.4% shareholder; and iv) Paul Kasian - no shareholding, previously a director (in the past 6 months). In addition, Mr Peter Rubinstein DQG 0U 6DP /HH ZLOO EHQH²W YLD a bonus/ performance hurdle for any of the BCG introduced projects which are accepted by Company and result in the issue of milestone shares by the Company to BCG. 'U /LQGVD\ :DNH²HOG KDV QR interest in BCG. Details of the other remuneration of each of the Directors is set out in section 5.5. 22 i) the ASX Market Price of Shares on 2 August 2018, being the date of announcement of the terms of the strategic alliance with BCG ($0.011); the ASX Market Price of Shares on 5 October 2018 ($0.012); and ii) iii) the VWAP of the Company’s Shares for the 15 trading days between 17 September 2018 and 5 October 2018 ($0.011). Value based on closing price on 2 August 2018 ($0.011) Value based on closing price on 5 October 2018 ($0.012) Value based on 15 trading day VWAP ($0.011) Issue Price ($nil) No. of BCG Milestone Shares 486,000,000 $5,346,000.00 $5,832,000.00 $5,346,000.00 Nil

 

f) Any other information that is reasonably required by Shareholders to make a decision and that is known to the Company or any of its Directors (section 219(1)(e) and 219(2)) There is no other information known to the Company or any of its Directors relevant to Resolution 11 save and except as follows: i) Market Price movements The valuation of the Milestone Shares noted above is based on a Market Price of the Shares. There is a possibility that the market price of the Shares on the date of issue of the Milestone Shares will be different to the price noted above and that the market price of the Shares will change up to the date of the Meeting. The effect on the valuation for the Milestone Shares, of movements in the Market Price of the Shares is set out below: iii) Opportunity Costs The opportunity costs and EHQH²WV IRUHJRQH E\ WKH Company entering the Framework Agreement and issuing the Milestone Shares is the dilutionary impact on the issued share capital of the Company. To the extent that the dilutionary impact caused by the issue of the Milestone Shares will be detrimental to the Company, this is more than offset by the advantages accruing from the Company securing the services of an experienced and leading global blockchain technology commercialisation and investment company on appropriate incentive terms and conserving the cash resources of the Company in this regard. It is also considered that the potential increase of value in the Milestone Shares is dependent upon a concomitant increase in the value of the Company and its Shares generally. iv) Taxation Consequences The granting of the Milestone Shares should not be subject to GST as the issue of Shares is UHJDUGHG DV D ²QDQFLDO VXSSO\ for GST purposes. The GST on any costs incurred by the Company in respect of the issue of the Milestone Shares are not FODLPDEOH XQOHVV WKH ²QDQFLDO acquisitions threshold is not breached or those costs qualify as a reduced credit acquisition. The Company is not able to claim an income tax deduction in respect of the issue of the Milestone Shares. The Company is not liable to any duty in respect of the issue of the Milestone Shares. v) Dilutionary Effect The effect that the issue of the Milestone Shares will have on the issued Shares of the Company is set out in Annexure D. Save as set out in this Explanatory Memorandum, the Directors are not aware of any other information that will be reasonably required by Shareholders to make a decision LQ UHODWLRQ WR WKH EHQH²WV contemplated by Resolution 11. 9. RESOLUTION 12: APPROVAL OF PROPOSED NEW PLACEMENT OF SHARES TO SOPHISTICATED INVESTORS 9.1 Introduction The Company requires additional funding to assist with its funding and expansion requirements to: ] commercialise existing R&D capabilities, IP and introduce an enhanced BREVAGenplus breast cancer risk assessment test and a colon cancer risk assessment test; progress development of a suite of genetic screening tests targeting both cancer and non-oncological diseases utilising the latest technology and platforms, and explore and capitalise on Blockchain opportunities in the medical and biotech industries, 23 ] Valuation total - assumes 486,000,000 Milestone Shares issued ] Market Price ($0.006) $2,916,000.00 ($0.012) $5,832,000.00 and for its general working capital purposes and is seeking Shareholder approval for the ability to raise capital from unrelated institutional, sophisticated or otherwise exempt investors (Subscribers) who wish to subscribe for Shares in the Company (Further Shares), being persons described in Section 708 of the Corporations Act. ($0.018) $8,748,000.00 ($0.024) $11,664,000.00 ii) Trading history In the 12 months prior to 5 October 2018, the Company’s trading history is as follows: [ the highest trading price was $0.021 on 8 January 2018; the lowest trading price was $0.007 on 31 October 2017; and the VWAP per Share over the 12 month period prior to 5 October 2018 was $0.0133. [ [ The trading price of the Shares on the close of trading on 5 October 2018 was $0.012. NOTICE OF AGM 2018

 

By Resolution 12 the Company is seeking prior Shareholder approval for the purposes of ASX Listing Rule 7.1. By obtaining the prior approval of Shareholders for the issue of securities proposed under this Resolution 12, the Company will be able to issue up to $15 million worth of Further Shares to the Subscribers at an issue price per Share of not less than 80% of the VWAP of the Shares calculated over the last 5 days on which sales in the Shares were recorded before the day on which the Further Shares are issued (Minimum Share Price). The maximum number of Further Shares which may be issued is calculated by dividing $15 million by the Minimum Share Price applicable at that time without being in breach of ASX Listing Rule 7.1. If this resolution is approved those Further Shares will not be included in the calculation of the Company’s 15% entitlement under ASX Listing Rule 7.1. 9.3 Information required under ASX Listing Rules 7.1 For the purposes of Listing Rule 7.3 and for all other purposes the following information is provided to Shareholders: f) The intended use of the funds raised: If the Further Shares are allotted, the funds raised will be used by the Company to assist with its funding and expansion requirements to; a) The maximum number of securities the Company is to issue: The maximum number of Further Shares to be issued will be calculated as a function of $15 million divided by the Minimum Share Price. The date by which the securities will be issued: The Further Shares will be issued within 3 months of the date of Shareholder approval of this Resolution 12. Further Shares will be issued progressively. The issue price of securities: As determined by the Board but not less than the Minimum Share 3ULFH GH²QHG DERYH. The names of the allottees or the basis upon which the allottees were determined: The allottees will be unrelated, institutional, sophisticated or otherwise exempt investors (being persons described in Section 708 of the Corporations $FW) WR EH LGHQWL²HG E\ WKH Company. The Future Placement Shares will not be issued to any Subscriber who, upon such issue, and in combination with that Subscriber’s associates, would have a Relevant Interest in excess of 19.99% of the Shares in the Company, unless further Shareholder approval is obtained or the issue of Further Shares to that recipient otherwise complies with Chapter 6 of the Corporations Act. The terms of the securities: Further Shares to be issued will be fully paid ordinary shares ranking equally in all respects with all other fully paid ordinary shares then on issue in the Company. i) commercialise existing R&D capabilities, IP and introduce an enhanced BREVAGenplus breast cancer risk assessment test and a colon cancer risk assessment test; progress development of a suite of genetic screening tests targeting both cancer and non-oncological diseases utilising the latest technology and platforms, and ii) b) 24 iii) explore and capitalise on Blockchain opportunities in the medical and biotech industries. c) and for its general working capital purposes. 9.2 Listing Rules 7.1 Subject to certain exceptions, Listing Rule 7.1 prohibits a listed company, from issuing or agreeing to issue in any 12 month period new Equity Securities equivalent in number to more than 15% of the total number of ordinary securities on issue at the beginning of the twelve month period (15% Capacity) without either the prior approval of a majority of disinterested shareholders, or the issue otherwise falls within one of the prescribed exceptions to Listing Rule 7.1 (15% Rule). d) 9.4 Directors’ Recommendation The Directors of the Company consider that Resolution 12 is in the best interests of the Company and recommend that Shareholders vote in favour of this Ordinary Resolution. Equity Securities issued with shareholder approval under ASX Listing Rule 7.1 do not count towards the 15% Capacity. Therefore the Company is seeking Shareholder approval in accordance with Listing Rule 7.1 to issue the Further Shares, so that the issue of those Shares do not count towards the Company’s 15% Capacity. e)

 

SPECIAL BUSINES S 25 10. RESOLUTION 13: APPROVAL OF INCREASED PLACEMENT CAPACITY of issued capital over a 12 month period from the date of the annual general meeting (Additional 10% Placement). The Additional 10% Placement under Listing Rule 7.1A is in addition to the ability of the Company to issue 15% of its issued capital without shareholder approval over a 12 month period pursuant to Listing Rule 7.1. The Company may issue the Placement Securities to raise funds for the Company and as non-cash consideration (further details of which are set out below). The Directors of the Company unanimously recommend that Shareholders vote in favour of Resolution 13. 10.1 Introduction Pursuant to Resolution 13, the Company is seeking Shareholder approval to issue an additional 10% of issued capital over a 12 month period pursuant to Listing Rule 7.1A. If passed, this resolution will allow the Company to allot and issue up to the number of new Equity Securities calculated in accordance with Listing Rule 7.1A.2 (Placement Securities) each at an issue price of at least 75% of the VWAP for the Company’s Equity Securities in that class (calculated over the last 15 days on which trades in the Equity Securities are recorded immediately before the date on which the price at which the Placement Securities are to be issued is agreed, or if the Placement Securities are not issued ZLWKLQ ²YH WUDGLQJ GD\V RI WKDW GDWH, the date on which the Placement Securities are issued) (Issue Price). 10.2 Listing Rule 7.1A a) General i) Eligibility Listing Rule 7.1A enables eligible entities, after obtaining shareholder approval at an annual general meeting, to issue equity securities up to 10% of its issued share capital through placements over a 12 month period after the annual general meeting (10% Placement Facility). The 10% Placement Facility is in addition to the Company’s up to 15% placement capacity under Listing Rule 7.1. An eligible entity for the purposes of Listing Rule 7.1A is an entity that is not included in the S&P/ASX 300 Index and has a market capitalisation of $300 million or less. The Company is therefore an eligible entity. Funds raised from any issue of the Placement Securities are intended to be used as follows: a) b) general working capital; to commercialise existing R&D capabilities, IP and introduce an enhanced BREVAGenplus breast cancer risk assessment test and a colon cancer risk assessment test; to progress development of a suite of genetic screening tests targeting both cancer and non-oncological diseases utilising the latest technology and platforms, and to explore and capitalise on Blockchain opportunities in the medical and biotech industries. c) This approval is sought pursuant to Listing Rule 7.1A. Under Listing Rule 7.1A, small and mid cap listed entities that meet the eligibility threshold and have obtained the approval of their ordinary shareholders by special resolution at the Annual General Meeting, are permitted to issue an additional 10% d) NOTICE OF AGM 2018

 

ii) Special Resolution Resolution 13 is a special resolution and therefore requires approval of 75% of the votes cast by Shareholders present and eligible to vote (in person, by proxy, by attorney or, in the case of a corporate Shareholder, by a corporate representative). Pursuant to Listing Rule 7.1A, no Placement Securities will be issued until and unless this Special Resolution is passed at the meeting. iii) Shareholder Approval The ability to issue the Placement Securities is conditional upon the Company obtaining shareholder approval by way of a Special Resolution at the meeting. The Company is now seeking Shareholder approval by way of a Special Resolution to have the ability to issue equity securities under the 10% Placement Facility. The exact number of equity securities to be issued under the 10% Placement Facility will be determined in accordance with the formula prescribed in Listing Rule 7.1A.2. Placement Securities must be in the same class as an existing quoted class of equity securities of the Company. The 10% Placement Facility will apply to the Company’s Ordinary Shares. b) 10% Placement Period - Listing Rule 7.1A.1 ii) the date of the approval by shareholders of a transaction under Listing Rules 11.1.2 (a VLJQL²FDQW FKDQJH WR WKH nature or scale of activities) or 11.2 (disposal of main undertaking), iv) less the number of fully paid shares cancelled in the 12 months. (Note that A is has the same meaning in Listing Rule 7.1 when calculating an entity’s 15% placement capacity.) or such longer period if allowed by ASX. D is 10% E is the number of equity securities issued or agreed to be issued under Listing Rule 7.1A.2 in the 12 months before the date of the issue or agreement to issue that are not issued with the approval of Shareholders under Listing Rule 7.1 or 7.4. If approval is given for the issue of the Placement Securities then the approval will expire on 29 November 2019 unless Shareholder approval is granted pursuant to Listing Rules 11.1.2 or 11.2 prior to that date. The effect of Resolution 13 will be to allow the Directors to issue the Placement Securities under Listing Rule 7.1A during the 10% Placement Period without using the Company’s 15% placement capacity under Listing Rule 7.1. d) Listing Rule 7.1A.3 i) Equity Securities Any Equity Securities issued under the Additional 10% Placement must be in the same class as an existing quoted class of Equity Securities of the Company. As at the date of this notice of meeting, the classes of Equity Securities in the Company quoted on the ASX are Shares. The Company presently has 2,985,770,828 Shares on issue at the date of this Notice of Meeting. ii) Minimum Issue Price The issue price for the Placement Securities issued under Listing Rule 7.1A must be not less than 75% of the VWAP of Equity Securities in the same class calculated over the 15 trading days immediately before: A) the date on which the price at which the relevant Placement Securities are to be issued is agreed; or B) if the relevant Placement Securities are not issued ZLWKLQ ²YH WUDGLQJ GD\V RI the date in paragraph (A) above, the date on which the relevant Placement Securities are issued. 26 c) Calculation of Additional Capacity 10% Placement - Listing Rule 7.1A.2 Listing Rule 7.1A.2 provides that eligible entities which have obtained Shareholder approval at an annual general meeting may issue or agree to issue, during the 12 month period after the date of the annual general meeting, a number of Placement Securities calculated in accordance with the following formula: Additional capacity = (A x D) – E where: A is the number of shares on issue 12 months before the date of issue or agreement to issue: Shareholder approval of the 10% Placement Facility under Listing Rule 7.1A is valid from the date of the annual general meeting at which the approval is obtained and expires on the earlier to occur of: i) the date that is 12 months after the date of the Annual General Meeting at which the approval is obtained; or i) plus the number of fully paid shares issued in the 12 months under an exception in Listing Rule 7.2; plus the number of partly paid shares that became fully paid in the 12 months; ii) iii) plus the number of fully paid shares issued in the 12 months with approval of holders of shares under Listing Rule 7.1 and 7.4;

 

 

10.3 Information to be given to ASX: Listing Rule 7.1A.4 If Resolution 13 is passed and the Company issues any Placement Securities under Listing Rule 7.1A, the Company will give to ASX: a) 447,865,624 Shares under Listing Rule 7.1 (assuming Resolution 10 is passed); and subject to shareholder approval being obtained under Resolution 13, 298,577,082 Shares under Listing Rule 7.1A. b) Effect on existing (non-participating) Shareholders - economic and voting dilution If Resolution 13 is passed and the Company issues the Placement Securities, there is a risk of economic and voting dilution to the existing Shareholders. The Company currently has on issue 2,985,770,828 Shares. The Company could issue 298,577,082 Shares on the date of the meeting (however, it is important to note that the exact number of Equity Securities which may be issued will be calculated in accordance with the formula contained in Listing Rule 7.1A.2 details of which are set out above). Any issue of Placement Securities will have a dilutive effect on existing Shareholders. 7KHUH LV D VSHFL²F ULVN WKDW: b) e) a list of allottees of the Placement Securities and the number of Placement Securities allotted to each (this list will not be released to the market); and the following information required by rule 3.10.5A, which will be released to the market on the date of issue: i) details of the dilution to the existing holders of Equity Securities caused by the issue; ii) where the Equity Securities are issued for cash consideration, a statement of the reasons why the Company issued the Equity Securities as a placement under rule 7.1A and not as (or in addition to) a pro rata issue or other type of issue in which existing shareholders would have been eligible to participate; iii) details of any underwriting arrangements, including any fees payable to the underwriter; and iv) any other fees or costs incurred in connection with the issue. The actual number of Equity Securities that the Company will have the capacity to issue under Listing Rule 7.1A will be calculated at the date of issue of the Equity Securities in accordance with the formula prescribed in Listing Rule 7.1A.2 (as described above). f) 10.5 6SHFL²F LQIRUPDWLRQ UHTXLUHG by Listing Rule 7.3A Pursuant to and in accordance with Listing Rule 7.3A, information is provided in relation to the approval of the 10% Placement Facility as follows: 27 a) Minimum issue price of securities issued under Listing Rule 7.1A - Listing Rule 7.3A.1 The issue price for the Placement Securities issued under Listing Rule 7.1A must be not less than 75% of the VWAP of Equity Securities in the same class calculated over the 15 trading days immediately before: i) the Market Price for the Company’s equity securities PD\ EH VLJQL²FDQWO\ ORZHU RQ the date of the issue of the Placement Securities than on the date of the Annual General Meeting; and the Placement Securities may be issued at a price that is at a discount to the Market Price for the Company’s equity securities on the issue date or the Placement Securities are issued as part of consideration for the acquisition of a new asset, ii) i) the date on which the price at which the relevant Placement Securities are to be issued is agreed; or if the relevant Placement Securities are not issued ZLWKLQ ²YH WUDGLQJ GD\V RI the date in paragraph (A) above, the date on which the relevant Placement Securities are issued. ii) 10.4 Listing Rules 7.1 and 7.1A The ability of an entity to issue Equity Securities under Listing Rule 7.1A is in addition to the entity’s 15% placement capacity under Listing Rule 7.1. which may have an effect on the amount of funds raised by the issue of the Placement Securities. The actual number of Placement Securities that the Company will have capacity to issue under Listing Rule 7.1A will be calculated at the date of issue of the Placement Securities in accordance with the formula prescribed in Listing Rule 7.1A.2 (refer to Section 6.2(a) above). At the date of this Notice of Meeting, the Company has on issue 2,985,770,828 Shares. The Company will have the capacity to issue the following shares on the date of the Meeting: NOTICE OF AGM 2018

 

The below table shows the potential economic and voting dilution of existing Shareholders on the basis of the current Market Price of Shares and the current number of ordinary securities for variable “A” calculated in accordance with the formula in Listing Rule 7.1A.2 as at the date of this Notice and in circumstances where the issued share capital has doubled and the Market Price of the shares has halved. The table below also shows additional scenarios in which the issued share capital has increased (by both 50% and 100%) and the Market Price of the shares has: ] decreased by 50%; and ] increased by 50%. The table has been prepared on the following assumptions: iv) The table shows only the effect of issues of Placement Securities under Listing Rule 7.1A, not under the 15% placement capacity under Listing Rule 7.1. i) The Company issues the maximum number of Placement Securities available under the 10% Placement Facility. The 10% voting dilution UH³HFWV WKH DJJUHJDWH percentage dilution against the issued share capital at the time of issue. This is why the voting dilution is shown in each example as 10%. v) The issue of Placement Securities under the 10% Placement Facility consists only of Ordinary Shares. ii) vi) The issue price is $0.012, being the closing price of the Shares on ASX on 5 October 2018. iii) The table does not show an example of dilution that may be caused to a particular Shareholder by reason of placements under the 10% Placement Facility, based on that Shareholder’s holding at the date of the Annual General Meeting. 28 50% decrease in Issue Price ($0.006) 50% increase in Issue Price ($0.018) Issue Price ($0.012) Variable ‘A’ in Listing Rule 7.1A.2 Current Variable A (2,985,770,828 Shares) 10% Voting Dilution 298,577,083 shares 298,577,083 shares 298,577,083 shares Funds raised $1,791,462 $3,582,925 $5,374,387 50 % increase in current Variable A (4,478,656,242 Shares) 10% Voting Dilution 447,865,624 shares 447,865,624 shares 447,865,624 shares Funds raised $2,687,194 $5,374,387 $8,061,581 100% increase in current Variable A (5,971,541,656 Shares) 10% Voting Dilution 597,154,166 shares 597,154,166 shares 597,154,166 shares Funds raised $3,582,925 $7,165,850 $10,748,775 c) Date by which Placement Securities may be issued - Listing Rule 7.3A.3 d) Purposes for which Placement Securities may be issued - Listing Rule 7.3A.4 ii) cash consideration. In such circumstances, the Company intends to use the funds raised towards: A) general working capital; B) to commercialise existing R&D capabilities, IP and introduce an enhanced BREVAGenplus breast cancer risk assessment test and a colon cancer risk assessment test; The Company will only issue and allot the Placement Shares during the 10% Placement Period that is at any time up to 29 November 2019. An approval given under Resolution 13 for the issue of the Placement Securities will cease to be valid in the event that Shareholders approve a transaction under Listing Rule 11.1.2 D VLJQL²FDQW FKDQJH WR WKH QDWXUH or scale of activities) or Listing Rule 11.2 (disposal of main undertaking). The Company may seek to issue the Placement Securities for the following purposes: i) non-cash consideration for the acquisition of new assets and investments. In such circumstances the Company will provide a valuation of the non-cash consideration as required by Listing Rule 7.1A.3; or

 

C) to progress development of a suite of genetic screening tests targeting both cancer and non-oncological diseases utilising the latest technology and platforms, and D) to explore and capitalise on Blockchain opportunities in the medical and biotech industries. The allottees under the 10% Placement Facility have not been determined as at the date of this Notice but may include existing substantial Shareholders and/or new Shareholders who are not related parties or associates of a related party of the Company. A) The Establishment Shares and Collateral Shares are fully paid ordinary shares in the Company and rank parri passu with all other Shares on issue. The Establishment Shares and Collateral Shares were issued on the terms set out in the Explanatory Memorandum in respect of Resolution 9; and B) The Establishment Options were issued to Kentgrove on the terms set out in the Explanatory Memorandum in respect of Resolution 9 and are exercisable at $0.0153 each and expiring three years from the date of issue (8 August 2021). iii) The names of the persons to whom the entity issued the securities or the basis on which those persons were determined; Issued to Kentgrove pursuant to the Kentgrove Facility (refer Resolution 10 of the Notice of Meeting). iv) The price at which the equity securities were issued and the discount (if any) that the issue price represented to closing market price on the day of issue; The Establishment Shares, Collateral Shares and Establishment Options were all issued for nil cash consideration pursuant to the Kentgrove Facility. The deemed issue price of the Equity Securities was $0.0113, being the 10 day VWAP prior to entry into the Kentgrove Facility, representing a closing market price on 8 August 2018 of approximately 8%. Further, if the Company is successful in acquiring new assets or investments for which Placement Securities are issued as consideration, it is likely that the allottees of some of the Placement Securities will be the vendors of the new assets or investments. f) Equity Security Issues in the previous 12 months The Company will comply with the disclosure obligations under Listing Rules 7.1A (4) and 3.10.5A upon issue of any Placement Securities. e) Company’s Share allocation policy - Listing Rule 7.3A.5 29 The Company previously obtained Shareholder approval under Listing Rule 7.1A at the 2017 Annual General Meeting of the Company held on 23 November 2017. The Company’s Share allocation policy for the issue of equity securities under this 10% Placement Facility is dependent on the prevailing market conditions at the time of any proposed issue. The identity of the allottees of Placement Securities will be determined on a case-by-case basis having regard to the factors including but not limited to the following: i) the methods of raising funds that are available to the Company, including but not limited to, issues in which existing security holders can participate; ii) the effect of the issue of the Placement Securities on the control of the Company; iii) WKH ²QDQFLDO VLWXDWLRQ DQG solvency of the Company; and iv) advice from corporate, ²QDQFLDO DQG EURNLQJ DGYLVHUV (if applicable). The total number of Equity Securities issued in the 12 months preceding the date of this Meeting is 121,333,100 (being 108,833,100 Shares and 12,500,000 Options), which represents 4.83% of the total number of equity securities on issue at the commencement of the 12 month period. The following are the details of all issues of equity securities by the Company during the 12 months preceding the date of this meeting: i) The number of Equity Securities issued in the past 12 months: A) 108,833,100 Shares (comprising the Establishment shares and Collateral Shares) issued under the Kentgrove Facility; and B) 12,500,000 Options, representing the Establishment Options issued under the Kentgrove Facility. The class of equity securities issued, and a summary of the terms of that class; ii) NOTICE OF AGM 2018

 

11. FURTHER INFORMATION The Directors of the Company are not aware of any other information which is relevant to the consideration by members of the proposed Resolutions set out in the Notice of Annual General Meeting. The Establishment Options were issued for nil cash consideration. As there is not a quoted class of Options on the same terms as the Establishment Options it is not possible to determine such discount. The Establishment Options are exercisable at $0.0153 each and expire three years from the date of issue (8 August 2021). v) If the issue was for cash: the total cash consideration, the amount of cash that has been spent, what it was spent on, and what is the intended use for the remaining amount of that cash (if any); The Establishment Shares, Establishment Options and Collateral Shares were all issued for nil cash consideration. vi) If the issue was for non-cash consideration; the non-cash consideration that was paid and the current value of that non-cash consideration; The Establishment Shares, Establishment Options and Collateral Shares were all issued for nil cash consideration pursuant to the Kentgrove Facility (details of which are set out above). The Establishment Shares have a current value of $105,997 based on the Market Price on 5 October 2018. The Collateral Shares have a current value of $1,200,000 based on the Market Price on 5 October 2018. As there is not a quoted class of Options on the same terms as the Establishment Options it is not possible to determine such discount. The Directors recommend members read this Explanatory Memorandum in full and, if desired, seek advice from their own independent ²QDQFLDO RU OHJDO DGYLVHU DV to the effect of the proposed Resolutions before making any decision in relation to the proposed Resolutions. 30 10.6 Directors Recommendation The Directors of the Company consider that Resolution 13 is in the best interests of the Company and recommend that Shareholders vote in favour of this Special Resolution.

 

INTERPRE TATION $ means Australian dollars. Chair means the person appointed to chair the Meeting. Establishment Shares means 8,833,100 Shares issued to to Kentgrove on 8 August 2018, the subject of Resolution 10. Advisory Resolution means a non-binding resolution passed by more than 50% of the votes cast at a general meeting of shareholders. Closely Related Party DV GH²QHG LQ the Corporations Act) of a member of the Key Management Personnel for an entity means: Explanatory Memorandum means the explanatory memorandum accompanying the Notice. Annual General Meeting or Meeting means the Annual General Meeting convened by the Notice. a) b) c) a spouse or child of the member; a child of the member’s spouse; a dependant of the member or the member’s spouse; anyone else who is one of the member’s family and may EH H[SHFWHG WR LQ³XHQFH WKH PHPEHUr RU EH LQ³XHQFHG E\ the member, in the member’s dealings with the entity; a company the member controls; or a person prescribed by the regulations for the purposes RI WKLV GH²QLWLRQ. Facility Shares means the Shares to be issued to Kentgrove pursuant to the Facility in response to a Placement Request which is accepted by Kentgrove. ASIC means the Australian Securities and Investments Commission. 31 d) ASX means ASX Limited (ACN 008 624 691) or the Australian Securities Exchange, as the context requires. )LQDQFLDO %HQH²W has the meaning given to that term in the Corporations Act. ASX Listing Rules or Listing Rules PHDQV WKH RI²FLDO OLVWLQJ UXOHV of ASX. Framework Agreement means the agreement between the Company and Blockchain Global Limited, entered into on 30 July 2018, a summary of which is contained in section 8.2. e) f) ASX Waiver means the application to ASX for a waiver of Listing Rule 10.3.13 made by the Company on 10 October 2018 to issue the Milestone Shares outside of three months following the Meeting. Collateral Shares means 100,000,000 Shares issued to Kentgrove on 8 August 2018], the subject of Resolution 10. Hainan Agreement means a binding agreement entered by GTG and Beijing Zishan Health Consultancy Ltd in respect of the establishment of a joint venture company to be registered in the People’s Republic of China, subsequent to the framework agreement executed on 14 August 2018, according to which GTG and Beijing Zishan Health Consultancy Ltd will explore opportunities to achieve market entry, through a Joint Venture, for GTG’s genomic tests into the health sector in the People’s Republic of China. BCG means Blockchain Global Limited (ACN 601 628 497). Company or GTG means Genetic Technologies Limited (ACN 009 212 328). BCG Milestone Shares or Milestone Shares means the issue of up to 486,000,000 Shares on the terms set out in the Explanatory Memorandum in respect of Resolution 11 to be issued to BCG (or its nominee). Constitution means the Company’s constitution. Corporations Act means the Corporations Act 2001 (Cth). Board means the current board of directors of the Company. Directors means the current directors of the Company. Business Day means Monday to Friday inclusive, except New Year’s Day, Good Friday, Easter Monday, Christmas Day, Boxing Day, and any other day that ASX declares is not a business day. Equity Securities has the meaning given in the Listing Rules. Establishment Options means 25,000,000 unlisted Options issued to Kentgrove on 8 August 2018, the subject of Resolution 10, on the terms set out in Annexure B. NOTICE OF AGM 2018

 

Hainan Joint Venture means the creation of a new corporate entity/ structure which, subject to formalisation of the Hainan Agreement between GTG and Beijing Zishan Health Consultancy Ltd will take on the functions of sales, account management, marketing and promotion of GTG’s genetic risk assessment products for the Chinese market. Milestone Three means the issue of 162,000,000 Shares, upon GTG’s Share trading price reaching 3.5c or above on the ASX for a period of 10 consecutive ASX trading days, and subject to a third Blockchain Opportunity becoming a Commenced Opportunity on or before 27 March 2020. Resolutions means the resolutions set out in the Notice of Meeting, or any one of them, as the context requires. Related Party has the meaning given to that term in the Corporations Act. Relevant Interest has the meaning given to that term in the Corporations Act. Milestone Two means the issue of 162,000,000 Shares, upon GTG’s Share trading price reaching 3c or above on the ASX for a period of 10 consecutive ASX trading days, and subject to a second Blockchain Opportunity becoming a Commenced Opportunity on or before 27 June 2020. Kentgrove means Kentgrove Capital Growth Fund, an investment fund managed by Kentgrove Capital Pty Ltd (ACN 150 638 627). Section means a section of the Explanatory Memorandum. Share means a fully paid ordinary share in the issued capital of the Company. Kentgrove Facility or Facility means the agreement between the Company and Kentgrove as announced on 8 August 2018, details of which were set out in the Explanatory Memorandum text of Resolutions 9 and 10. Shareholder means a holder of a Share. Minimum Issue Price means the minimum price at which Kentgrove can subscribe for Shares in respect of a particular placement request, DV VSHFL²HG E\ WKH &RPSDQ\ LQ WKH relevant placement request, under the Kentgrove Facility. 32 Special Resolution means a resolution passed by more than 75% of the votes cast at a general meeting of shareholders. Key Management Personnel has the GH²QLWLRQ JLYHQ LQ WKH DFFRXQWLQJ standards as those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly and indirectly, including any director (whether executive or otherwise) of that entity. Term means the 20 month term of the Kentgrove Facility commencing on the date of entry of the Facility. Notice or Notice of Meeting or Notice of Annual General Meeting means this notice of Annual General Meeting including the Explanatory Memorandum and the Proxy Form. Term Sheet means the non-binding term sheet entered into by the Company and BCG as announced on 15 February 2018. Option means an option which entitles the holder to subscribe for one Share. Listing Rule or Listing Rules means WKH RI²FLDO OLVWLQJ UXOHV RI WKH $6; as amended from time to time; VWAP means means, in relation to a Trading Day, the volume weighted average price of the Shares traded in the ordinary course of business on the ASX on that Trading Day, excluding crossings executed outside the open session state, special crossings, overseas trades and trades pursuant to exercise of options over Shares. Ordinary Resolution means a resolution passed by more than 50% of the votes cast at a general meeting of Shareholders. Market Price means the closing price of Shares in the Company on the ASX on a particular day. Milestone One means the issue of 162,000,000 Shares upon GTG’s Share trading price reaching 2.5c or above on the ASX for a period of 10 consecutive ASX trading days, and subject to one Blockchain Opportunity becoming a Commenced Opportunity on or before 27 December 2019. Performance Rights means the Performance Rights to be issued to the Directors of the Company, the subject of Resolutions 4, 5, 6, 7, and 8. Any inquiries in relation to the Resolutions or the Explanatory Memorandum should be directed to Mr Kevin Fischer (Company Secretary), 60-66 Hanover Street, Fitzroy VIC 3065 (+61 3 8412 7009). Placement Period means the 4 week period in which Facility Shares can be placed, unless a period of time is otherwise agreed by the parties. Placement Request means the request issued by the Company setting out the Placement Period, maximum placement amount and the Minimum Issue Price, which may be accepted by Kentgrove, under the Kentgrove Facility. Milestones means Milestone One, Milestone Two and Milestone Three collectively.

 

ANNEX URE ANNEXURE A: SUMMARY OF THE ESOP Summary of the key terms of the Employee Share and Option Plan: 7) The Option Period commences on the Option Commencement Date and ends on the earlier of: d) the Eligible Person ceasing to be employed or engaged by the Company or an Associated Body Corporate of the Company due to fraud, dishonesty or being in material breach of their obligations to the Company or an Associated Body Corporate. a) the expiration of such period nominated by the Board at its sole discretion at the time of the grant of the Option but being not less than two years; if an Eligible Person’s employment or engagement with the Company or an Associated Body Corporate ceases because of an Uncontrollable Event, the earlier of: 1) The Plan is to extend to Eligible Persons or Eligible Associate (as the case may be) of Genetic Technologies Limited ACN 009 212 328 (Company) or an Associated Body Corporate of the Company as the Board may in its discretion determine. The total number of Securities which may be offered by the Company under this Plan shall not at any time exceed 5% of the Company’s total issued Shares when aggregated with the number of Securities issued or that may be issued as a result of offers made at any time during the previous three year period under: a) an employee incentive scheme covered by ASIC CO 14/1000; or b) an ASIC exempt arrangement of a similar kind to an employee incentive scheme. The Shares are to be issued at a price determined by the Board. The Options are to be issued for no consideration. The exercise price of an Option is to be determined by the Board at its sole discretion. The Option Commencement Date will be any such date or dates with respect to the Options or tranches of Options (as the case may be) as may be determined by the Board prior to the issuance of the relevant Options. b) 8) Eligibility to participate is determined by the Board. Eligibility is restricted to Eligible Persons (or their Eligible Associates where applicable) of the Company or an Associated Body Corporate of the Company. The Board is entitled to determine: 33 2) 1) the expiry of the Option Period; or six months (or such other period as the Board shall, in its absolute discretion, determine) from the date on which the Eligible Person ceased that employment or engagement; 2) a) subject to paragraph 2, the total number of Shares and Options to be offered in any one year to Eligible Persons or Eligible Associates; the Eligible Persons to whom offers will be made; and the terms and conditions of any Shares and Options granted, subject to the Plan. b) c) if an Eligible Person’s employment or engagement with the Company or an Associated Body Corporate ceases because of a Controllable Event: c) 9) In respect of Options, Option holders do not participate in dividends or in bonus issues unless the Options are exercised. 3) 1) the expiry of the Option Period; or three months (or such other period as the Board shall, in its absolute discretion, determine) from the date on which the Eligible Person ceased that employment or engagement; or 4) 10) Option holders do not have any right to participate in new issues of securities in the Company made to shareholders generally. The Company will, where required pursuant to the ASX Listing Rules, provide Option holders with notice prior to the books record date (to determine entitlements to any new issue of securities made to shareholders generally) to exercise the Options, in accordance with the requirements of the ASX Listing Rules. 2) 5) 6) NOTICE OF AGM 2018

 

11) In the event of a pro rata issue (except a bonus issue) made by the Company during the term of the Options the Company may adjust the exercise price for the Options in accordance with the formula in the terms of the Plan. 12) The Board has the right to vary the entitlements of Participants to take account of the effect of capital reorganisations, bonus issues or rights issues. 13) The terms of the Options shall only be changed if holders (whose votes are not to be disregarded) of Shares in the Company approve of such a change. However, the terms of the Options shall not be changed to reduce the Exercise Price, increase the number of Options or change any period for exercise of the Options. 14) The Board may impose as a condition of any offer of Shares and Options under the Plan any restrictions on the transfer or encumbrance of such Shares and Options as it determines. 15) The Board may vary the Plan. 16) The Plan is separate to and does not in any way form part of, vary or otherwise affect the rights and obligations of an Eligible Person under the terms of his or her employment or arrangement. 17) At any time from the date of an Offer until the Acceptance Date of that Offer, the Board undertakes that it shall provide information as to: a) the Current Market Price of the Shares; and b) the acquisition price of the Shares or Options offered where this is calculated by reference to a formula, as at the date of the Offer, to any Participant within three Business Days of a written request to the Company from that Participant to do so. 18) Any Offer made pursuant to this Plan will specify whether subdivision 83A-C of the applicable Tax Laws applies to that Offer such that any tax payable by a Participant under the Offer will be deferred to the applicable deferred taxing point described in that subdivision. In this Plan: Controllable Event means cessation of employment or engagement other than by an Uncontrollable Event. Uncontrollable Event means: a) death, serious injury, disability or illness which renders the Eligible Person incapable of continuing their employment or engagement (or providing the services the subject of the engagement) with the Company or Associated Body Corporate; forced early retirement, retrenchment or redundancy; or such other circumstances which results in an Eligible Person leaving the employment of or ceasing their engagement with the Company or Associated Body Corporate and which the Board determines is an Uncontrollable Event. 34 b) c)

 

ANNEXURE B: TERMS AND CONDITIONS OF ESTABLISHMENT OPTIONS 8) Option holders do not participate in any dividends unless the Options are exercised and the resultant shares of the Company are issued prior to the record date to determine entitlements to the dividend; In the event of any reorganisation (including consolidation, subdivision, reduction or return) of the issued capital of the Company the rights of an Option holder will be changed to comply with the Listing Riles (currently Listing Rule 7.22) applying to a reorganisation of capital at the time of the reorganisation; 11) If there is a bonus issue to the holders of shares in the Company, the number of shares over which the Option is exercisable shall be increased as VSHFL²HG LQ /LVWLQJ 5XOH 6.22.3; 12) Whenever the number of Shares over which an Option is exercisable, or the applicable Option exercise price, is adjusted, the Company must give the holder written notice within 5 Business Days; and 13) The Company shall not apply for listing of the Options on the ASX. 1) The Options shall be issued for no cash consideration; The exercise price of each Option is $0.0153 (Exercise Price); The Options will expire on the day that is three years after their issue (Expiry Date), currently anticipated to be 8 August 2021unless earlier exercised; The Options are assignable and transferrable; The Options may be exercised at any time wholly or in part by delivering a duly completed form of notice of exercise together with payment for the Exercise Price per Option to the Company at any time on or after the date of issue of the Options and on or before the Expiry Date. Payment may be made as directed by the Company from time to time, which may include by cheque, electronic funds transfer or other methods; Upon the valid exercise of the Options and payment of the Exercise Price, the Company will issue fully paid ordinary shares ranking pari passu with the then issued ordinary shares within 2 business days of valid exercise and payment; Option holders do not have any right to participate in new issues of securities in the Company made to shareholders generally. The Company will, where required pursuant to the ASX Listing Rules, provide Option holders with notice prior to the books record date (to determine entitlements to any new issue of securities made to shareholders generally) to exercise the Options, in accordance with the requirements of the Listing Rules. 2) 9) 3) 4) 5) 10) If there is a pro rata issue (except a bonus issue), the Exercise Price of an Option may be reduced according to the following formula: On = O – E [P-(S + D)] N + 1 Where: On = the new exercise price of the Option; O = the old exercise price of the Option; E = the number of underlying securities into which one Option is exercisable; P = the volume weighted average market price per security of the underlying securities during the 5 trading days ending on the day before the ex right date or the ex entitlements date; S = the subscription price for a security under the pro rata issue; D = dividend due but not yet paid on the existing underlying securities (except those to be issued under the pro rata issue); N = the number of securities with rights or entitlements that must be held to receive a `right to one new security. 35 6) 7) NOTICE OF AGM 2018

 

ANNEXURE C: PERFORMANCE RIGHT TERMS Summary of the key terms of the Performance Rights Performance Hurdles The Class A Performance Rights vest and are exercisable upon the Share price reaching $0.02 or greater for more than 10 day consecutive ASX trading days. The Class B Performance Rights vest and are exercisable upon the Share price reaching $0.02 or greater for more than 10 day consecutive ASX trading days and the Hainan Agreement being executed. The Class C Performance Rights vest and are exercisable upon the Hainan Joint Venture being listed on a recognised stock exchange and the market capitalisation of GTG’s share of this listed Joint Venture reaching $100 million or above and being sustained for more than 10 consecutive ASX trading days. The Directors, being the recipients of the Performance Rights, must remain engaged by the Company at the time of satisfaction of the performance hurdle in order for the relevant Performance Right to vest. Issue Price The Directors, being the recipients of the Performance Rights, will not pay any consideration for the grant of Performance Rights. Exercise Price No amount shall be payable by Directors as recipients of the Performance Rights on the exercise of a Vested Performance Right. Exercise Period The Class A Performance Rights expire three years from being awarded. The Class B Performance Rights expire three years from being awarded. The Class C Performance Rights expire three years from being awarded. 36 Lapse A Performance Right lapses, to the extent that it has not been exercised, on the earlier to occur of: ] the date on which the Board makes a determination that the Performance +XUGOHV KDYH QRW EHHQ VDWLV²HG; the date on which the Board makes a determination that a Participant acts fraudulently or dishonestly or is in material breach of his or her obligations to the Company or an Associated Body Corporate; or in the event of a Change in Control Event (being a scheme of arrangement, WDNHRYHU ELGr RU DELOLW\ WR UHSODFH DOO RU D PDMRULW\ RI WKH 'LUHFWRUV DV GH²QHG EHORZ)r WKH ODVW GD\ VSHFL²HG LQ ZULWLQJ LQ D QRWLFH JLYHQ E\ WKH %RDUG WR each Participant, that he or she may exercise Vested Performance Rights; if a Director’s employment or engagement with the Company or related body corporate ceases because of: ] ] ] [ death, serious injury, disability or illness which renders the Director incapable of continuing their employment or engagement (or providing the services the subject of the engagement) with the Company or related body corporate; forced early retirement, retrenchment or redundancy; or such other circumstances which results in a Director leaving the employment of or ceasing their engagement with the Company or related body corporate and which the Board determines is an Uncontrollable Event; (each an Uncontrollable Event), the earlier of the end of the Exercise Period; or the date that is 3 months from the date of cessation of employment or engagement; [ [ [ [ [ ] if a Director’s employment or engagement with the Company or related body corporate ceases for reasons other than due a Uncontrollable Event: [ [ [ [ in respect of a Vested Performance Right, the earlier of: the end of the Exercise Period; or 3 months from the date of cessation of employment or engagement; or in respect of an Unvested Performance Right, the date of cessation of employment or engagement; and ] the day ending at 5.00pm (Melbourne time) on the date which is 36 months following the date of issue of the Performance Rights, unless otherwise determined by the Board.

 

 

Summary of the key terms of the Performance Rights Rights and restrictions of Performance Rights Performance Rights issued pursuant to the terms above have no rights to dividends or other distributions and no rights to vote at meetings of the Company until that Performance Right is exercised and the holder of the Performance Rights is a Shareholder in the Company; Shares acquired upon exercise of the Performance Rights will upon allotment rank pari passu in all respects with other Shares; If there are certain variations of the share capital of the Company including a capitalisation or rights issue, subdivision, consolidation or reduction in share capital, a demerger (in whatever form) or other distribution in specie, the Board may make such adjustments as it considers appropriate; Performance Rights will not be quoted on the ASX. The company will apply for quotation of the exercised Shares on the ASX within ten Business Days after the date of allotment of those Shares; and A Performance Right does not confer on a Director, being a recipient of the Performance Rights to participate in a new issues of Shares by the Company, including by way of bonus issue, rights issue or otherwise. Assignability Except on the death of a Director who was a recipient of the Performance Rights, Performance Rights may not be transferred, assigned or novated except with the approval of the Board. Change of Control Event Where there is publicly announced any proposal in relation to the Company which the Board reasonably believes may lead to a Control Event: ]all of the Unvested Performance Rights, that have not lapsed, will become Vested Performance Rights; and ]the Board shall promptly notify each Director in writing that he or she PD\, ZLWKLQ WKH SHULRG VSHFL²HG LQ WKH QRWLFH, H[HUFLVH 9HVWHG 3HUIRUPDQFH Rights. Control Event means any of the following: the Company entering into a scheme of arrangement with its creditors or Shareholders or any class thereof pursuant to section 411 of the Corporations Act; 37 ] WKH FRPPHQFHPHQW RI D ELG SHULRG (DV GH²QHG LQ WKH &RUSRUDWLRQV $FW) in relation to the Company to acquire any Share where the takeover bid extends to Shares issued and allotted after the date of the takeover bid, ZKHUH WKH ELG LV UHFRPPHQGHG E\ WKH %RDUG RQ DQ XQTXDOL²HG EDVLV RU subject to there being no superior proposal; or when a person or group of associated persons having a relevant interest LQ, VXEVHTXHQW WR WKH LVVXH RI WKH 3HUIRUPDQFH 5LJKWV, VXI²FLHQW 6KDUHV LQ the Company to give it or them the ability, in general meeting, to replace all or a majority of the Directors in circumstances where such ability was not already held by a person associated with such person or group of associated persons, prior to the issue of the Performance Rights. ] NOTICE OF AGM 2018

 

ANNEXURE D: DILUTIONARY EFFECT OF THE ISSUE OF THE MILESTONE SHARES Current Following issue of Milestone Shares Securities held % held Securities held % held Holder Current Shareholders 1, 2 2,985,770,828 100% 2,985,770,828 86% BCG 3 Nil Nil 486,000,000 14% Total ordinary shares 2,985,770,828 100% 3,471,770,828 100% 1) 2) Excluding Shares held by BCG. Assumes that no Shares are issued other than as contemplated by Resolution 11, including that no Shares are issued on exercise of existing Options or pursuant to securities proposed to be issued under any other Resolutions of this Notice. The number of Shares assumes the maximum number of Milestone Shares are issued. 3) 38

 

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Genetic Technologies Limited ANNU AL REPOR T 2018

 

GENETIC TECHNOLOGIES LIMITED 01/ 05/ WHO WE ARE LETTER TO OUR SHAREHOLDERS / 02 ALIGNING STRUCTURE WITH STRATEGY REFRESHED BOARD OF DIRECTORS AND SENIOR MANAGEMENT / 05 EXPANSION INTO SOUTHEAST ASIA / 07 MOVING TOWARD POPULATION SCALE SCREENING / 07 ACCELERATING PRODUCT DEVELOPMENT / 08 BLOCKCHAIN FOR GENETICS / 08 CONSUMER EMPOWERMENT / 09 CORPORATE BRAND / 09 11/ 14/ GENETIC RISK ASSESSMENT THE HISTORY OF BREVAGenplus / 11 2018 AND BEYOND: COLORECTAL CANCER RISK ASSESSMENT TEST / 12 STATUTORY REPORTS

 

WHOWEARE Listed on the ASX (GTG) in 2000 and Nasdaq (GENE) in 2005, Genetic Technologies is a leader in the development and commercialisation of genetic risk assessment technology. 01 Our patented tests are designed to predict an individual’s risk of developing chronic disease. We embrace blockchain technology focusing on genomics and precision medicine as a means to promote better health outcomes. Our purpose is to empower individuals to make informed decisions about their health by offering predictive testing and assessment tools that enable individuals and physicians to proactively develop personalised health management plans. Our lead product, BREVAGenplus®, is a clinically validated risk assessment test IRU QRQ-KHUHGLWDU\ EUHDVW FDQFHU DQG LV ²UVW LQ LWV FODVV. ANNU AL REPOR T 2018

 

TOOURSHAREHOLDERS We recognise that a critical element of our success is the continued support of our shareholders. We appreciate your confidence in us during this period of intense research and development. 02 Dear Shareholders, In January, we welcomed three new executives to the Board, presenting the Company with the opportunity to pursue new technologies and commercialisation strategies, including those presented by rapidly expanding blockchain technologies in the biomedical space. We are actioning a bold plan that will take us beyond Australia, beyond the US, and into the global community. Whilst the blockchain opportunities under investigation are currently still in their infancy, our collaboration with Blockchain Global Limited ZLOO SURYLGH *7* ZLWK VLJQL²FDQW advantage to accelerate projects in this emerging space. Development of an enhanced version of the BREVAGenplus® test is nearing completion, seeking to broaden the applicability of BREVAGenplus and enabling its use by women with an extended family history of disease. By increasing the range of risk factors analyzed, the test will provide clinically actionable insight for approximately 95% of women. The coming year will mark the 20th anniversary of GTG. Over the past two decades, we’ve VHHQ WKH ²HOG RI JHQHWLFV HYROYH from an academic discipline to a FULPH-²JKWLQJ WRRO, D PHDQV RI determining paternity and a way of understanding your heritage. Today, we’re approaching a critical LQ³HFWLRQ SRLQW LQ WKH PDUNHW, DV genetic testing moves into the healthcare mainstream as a tool for predicting disease occurrence. Individuals increasingly are demonstrating their willingness to self-test at their own expense. Physicians now recommend genetic testing to their patients as part of an overall health program. The FDA is quickly changing regulations in recognition of the value of genetic WHVWLQJ IRU GLVHDVH ULVN SUR²OLQJ. Through our established network of research collaborators and a revitalised internal research and development focus in 2018 subsequent to the changes to the Board in January, we have accelerated our development WLPHOLQHV DQG GH²QHG D SLSHOLQH RI products. GTG has now commenced discussions with local and international stakeholders to help identify and develop pathways to market for our colorectal cancer risk assessment test, and in addition, we will seek to introduce a range of new genetic risk assessment tests to the market for multiple diseases, including: 2XU ³DJVKLS SURGXFW, BREVAGenplus® continues to be used by physicians and cancer specialists in the US as a tool for developing personalised health plans for their patients. The test goes beyond traditional BRCA screening which only addresses genetic risk for women who have a history of breast cancer in their immediate family. As a company, we are in an ideal position to take advantage of these market forces. Our uniquely patented technologies and VLJQL²FDQW H[SHUWLVH LQ WKH ²HOG RI genetic risk assessment are major “assets” as we strive to achieve global market adoption of our expanding portfolio of tests. ] ] ] ] Cardiovascular Disease Type 2 Diabetes Prostate Cancer Melanoma

 

1 in 8 women are diagnosed with breast cancer in their lifetime and the majority of women diagnosed with breast cancer have little to no family history of disease. A simple cheek swab is all it takes to know your personalised 5 year risk and to discover breast cancer prevention strategies. Ask your physician about BREVAGenplus today. 03 All of our tests will launch under a new brand identity, GeneType. The new brand will allow us to build awareness for our entire suite of products as we push beyond breast cancer and introduce additional tests for chronic disease. Our messaging to the market will look to empower individuals to initiate discussions with their physician on how to use our genetic tests to inform their personal health plan and lifestyle choices. Our invitation to enter the market in China through the Hainan Free Trade Zone represents an important milestone for our company. For perspective, cancer is the leading cause of death in China, with over 4 million new cases diagnosed each year. China also has the highest prevalence of Type 2 diabetes in the world. As we move into our third decade as a business, we know that this will EH D GH²QLQJ \HDU IRU WKH FRPSDQ\, IRU WKH ²HOG RI JHQHWLFV DQG IRU WKH millions of people who will come to rely on genetic risk assessment testing as a key preventive measure LQ WKH ²JKW DJDLQVW FKURQLF GLVHDVH. We believe in the power of genetic risk assessment testing and in our ability to deliver better health outcomes to people around the world. To support our continued execution of these initiatives over the course RI WKH FRPLQJ ²VFDO \HDU, .HQWJURYH Capital Pty Ltd, a Melbourne-based investment management ²UP, KDV EHHQ HQJDJHG WR DVVLVW LQ strengthening our funding position through a A$20m placement facility. Additionally we will pursue opportunistic funding initiatives to strengthen our balance sheet. As we expand our footprint into Southeast Asia, we’ve established relationships with key partners, including The Shivom Project in India and Zishan Bejing in China. These collaborations offer GTG the opportunity to deliver large-scale population health initiatives that will dramatically increase the effectiveness of existing screening and treatment programs. Regards Paul Kasian Executive Chairman and Interim CEO Genetic Technologies Limited We recognise that a critical element of our success is the continued support of our shareholders. :H DSSUHFLDWH \RXU FRQ²GHQFH in us during this period of intense research and development. ANNU AL REPOR T 2018

 

 

most advanced, scientifically validatedgenetic based health risk assestment test.

 

ALIGNINGS TRUCTURE WITH S TR ATEG Y Impacting health outcomes on a global scale requires an exceptional level of commitment and the ability to employ new technologies, pursue new channels to market and partner with a range of organisations around the world. 05 REFRESHED BOARD OF DIRECTORS AND SENIOR MANAGEMENT Australian Institute of Company 'LUHFWRUV 'U .DVLDQ LV DOVR D QRQ-executive director and the Chairman of IODM Limited (ASX: IOD), and former Non-Executive Director of (/. 2UWKR%LRORJLFV DQG %ORFNFKDLQ Global Limited. In January, GTG refreshed the Board of Directors, introducing skills that combine expertise in blockchain with commercialisation experience in the med-tech sector. Dr Paul Kasian, &KDLUPDQ DQG &KLHI ([HFXWLYH 2I²FHU 'U .DVLDQ ZDV DSSRLQWHG WR WKH Board on 12 December 2013 and became Chairman of the Company on 31 January 2018 and interim, part time CEO on 6 February 2018. He brings to the Board a combination of expertise in strategic business leadership and biotech investment giving him a deep understanding of key value drivers for companies in generating shareholder value. He is an experienced executive director with demonstrated domestic and international success in funds management, encompassing senior leadership, investment and risk roles. 'U /LQGVD\ :DNH²HOG, Non-Executive Director 'U :DNH²HOG ZDV DSSRLQWHG WR the Board on 24 September 2014. He started Safetech in 1985 and over the next 25 years Safetech became a force in the Australian material handling and lifting equipment market, designing and manufacturing a wide range of industrial products. In 1993, he left medicine to become the full time CEO of Safetech. In 2006 Safetech was awarded the Telstra Australian National Business of the Year. In 2013 Safetech merged and ultimately acquired Tieman Materials Handling. 'U .DVLDQ KDV KHOG VHQLRU OHDGHUVKLS positions in a number of investment JURXSV, DQG KDV VLJQL²FDQW IXQGV management experience in Australia leading investment in the healthcare and life sciences sector. He holds a PhD in Microbiology and a Master of Business Administration, both from The University of Melbourne, and is a Graduate Member of the ANNU AL REPOR T 2018

 

ALIGNING S TRUCTURE WITH S TRATEG Y 'U :DNH²HOG FRQWLQXHV DV WKH &(2 of Safetech. It is Australia’s largest manufacturer and supplier of dock equipment, freight hoists and custom lifting solutions. Safetech employs approximately 100 people. 'U :DNH²HOG KDV EHHQ D ELRWHFK investor for more than 20 years. blockchain advisory company. Mr Peter Rubinstein, Non-Executive Director Kevin Fischer, &KLHI )LQDQFLDO 2I²FHU DQG Company Secretary Mr Rubinstein was appointed to the Board on 31 January 2018. He has over 20 years’ experience in early stage technology commercialisation through to public listings on the ASX. He is a lawyer, having worked at a ODUJH QDWLRQDO ²UP SULRU WR PRYLQJ in-house at Montech, the commercial arm of Monash University. Mr Fischer was appointed to the UROH RI &KLHI )LQDQFLDO 2I²FHU LQ November 2015 and on January 13, 2016 was appointed Company Secretary. He has over ten years RI H[SHULHQFH LQ VHQLRU ²QDQFH roles with successful diagnostic companies, such as QIAGEN and Cellestis. Mr Fischer is a Fellow CPA and Chartered Secretary ZKR KDV VLJQL²FDQW H[SHULHQFH LQ WKH DGPLQLVWUDWLRQ, ²QDQFLDO management and reporting for international operations similar to those of Genetic Technologies. Dr Jerzy “George” Muchnicki, Executive Director and Head of Business Development 06 Dr Muchnicki was appointed to the Board on 31 January 2018 and has also been appointed to the role of part time Business Development Director. George graduated from Monash University and has held positions in private practice for over 25 years, and was Head of Student Health at The University of Melbourne. For the past 14 years he has been involved in commercialisation and funding R&D in the biotechnology sector from gene silencing to regenerative medicine. 0U 5XELQVWHLQ KDV KDG VLJQL²FDQW exposure to the creation, launch and management of a diverse range of technology companies in biotech, digital payments and renewable energy. Mr Rubinstein is also Chairman of DigitalX Limited (ASX: DCC) and a Director of Blockchain Global Limited. Dr Muchnicki brings with him strong commercial and medical skills, including broad interests in software development, blockchain and sustainable building materials. He is a co-founder and Non-Executive Director of Speed Panel Holdings D ZRUOG OHDGHU LQ ²UH UDWHG DQG acoustic wall solutions. He is also the co-founder of Candlebets, a software development company that is creating blockchain enabled platforms for the gaming industry. Dr Richard Allman, 6FLHQWL²F 'LUHFWRU Mr Xue “Sam” Lee, Non-Executive Director Dr Allman joined the Company in 2004 DQG ZDV DSSRLQWHG 6FLHQWL²F Director in December 2012. He KDV RYHU 20 \HDUV RI VFLHQWL²F DQG research experience in both the DFDGHPLF DUHQD LQ WKH 8. DQG WKH commercial sector in Australia. He has wide experience in research leadership, innovation management, and intellectual property strategy, covering oncology, diagnostics, and product development. Prior to entering the biotech sector, Dr Allman’s academic career encompassed oncology research, drug development, and assay design. Mr Lee was appointed to the Board on 31 January 2018. He is the founder and CEO of Blockchain Global Limited, which offers one of Australia’s largest cryptocurrency exchanges, blockchain consulting and blockchain incubation services. Blockchain Global has assisted with over $200m in blockchain UHODWHG LQYHVWPHQWV ZLWK RI²FHV LQ 0HOERXUQH, 1HZ <RUN, .REH, Shanghai and Dalian. Mr Lee is a frequent speaker at Blockchain Summits, DLT Conferences and has been a panellist at the World Economic Forum. Mr Lee is also a Director of DigitalX Limited (ASX: DCC), a leading

 

SPORADIC BREAST CANCER 2XU ³DJVKLS WHVW, BREVAGenplus®, predicts a woman's risk of developing breast FDQFHU LQ WKH QH[W ²YH years, even with no family history. 85% HEREDITARY BREAST CANCER 5% FAMILIAL BREAST CANCER 10% EXPANSION INTO SOUTHEAST ASIA MOVING TOWARDS POPULATION-SCALE SCREENING Companies approved to operate in China as part of the Hainan Free Trade Zone Initiative can WDNH DGYDQWDJH RI WD[ EHQH²WV, subsidies and investment. GTG will be supported by the Hainan Resort Software Community, an organisation that can accelerate market entry plans through the provision of services including: 07 In July of this year, GTG was invited to China to explore participation in the Hainan Medical Pilot Zone, part of the Hainan Free Trade Zone Initiative. The invitation was extended to GTG via Beijing Zishan Health Consultancy Limited, a China-based company with whom GTG have signed a Heads of Agreement for a proposed joint venture. Discussions in Hainan are SDUW RI DQ RI²FLDO UHYLHZ WR HYDOXDWH the feasibility of offering GTG’s suite of genetic risk assessment tests into China. Our work in China represents a VLJQL²FDQW RSSRUWXQLW\ IRU *7* WR GHPRQVWUDWH WKH EHQH²WV RI JHQHWLF risk assessment as a public health initiative for entire populations. The cost of healthcare globally is expected to reach $8.7 trillion by 2020. Healthcare providers are looking for ways to improve HI²FLHQF\ WKURXJK SUHYHQWLYH medicine. Detecting chronic disease in its early stages is a key initiative in many countries that offer healthcare services to their citizens. ] ] ] Chinese company registration )UHH RI²FH VSDFH LQ WKH ]RQH Marketing assistance and access to government sectors, hospitals and enterprise Assistance navigating the process to obtain CFDA approval for GTG’s risk assessment tests Support for gathering the test samples necessary to optimise GTG’s tests for the Chinese population ] Following these meetings, the Hainan Ecological Smart City Group formally approved GTG’s planned market entry into China via the Hainan Free Trade Zone Initiative. Participants in the Hainan Medical Pilot Zone gain access to the Chinese healthcare market valued at more than $800B USD. With a growing clinical market and increased government investment in health-related technology, China is poised to become one of the largest markets for genomic testing. Genetic risk assessment can potentially optimise the cost effectiveness of national disease screening programs. Screening programs that test everyone at the same intervals will be over-screening some individuals and under-screening others. Our goal is to better stratify individuals into risk categories that can be used to tailor screening decisions and strategies for clinical management of the individual patient. ] Cancer is the leading cause of death in China, with 4.3 million new cancer cases and 2.8 million cancer deaths estimated to occur each year. That burden is expected to increase in the coming decades due to an aging population as well as changes in lifestyle that increase cancer risk, such as excessive calorie intake and physical inactivity. Early detection leads to better outcomes for the individual. It also impacts the burden that chronic illness imposes on society by lowering treatment costs and minimising productivity losses. Breast cancer in China is increasing at a rate of 3.5% per year. ANNU AL REPOR T 2018

 

ALIGNING S TRUCTURE WITH S TRATEG Y 08 ACCELERATING PRODUCT DEVELOPMENT BLOCKCHAIN FOR GENETICS 2QH RI WKH ²UVW DFWLRQV WDNHQ E\ WKH new Board was the establishment of a division within GTG to explore the potential of blockchain in the medical and biotech sector. Gene Ventures is a wholly-owned division of GTG, supporting blockchain-based healthcare platforms as an emerging distribution channel for our genomic screening tests. Key Collaborators The University of Melbourne The research collaboration we initiated last year with The University of Melbourne received an NHMRC Partnership Grant early in the year. *7*¬V 6FLHQWL²F 'LUHFWRU, 'U 5LFKDUG Allman is co-investigator on the award. The research team is led by Professor John Hopper of The University of Melbourne’s Centre for Epidemiology and Biostatistics. As a company, we have refocused on accelerating product development as a strategic REMHFWLYH 2XU ²UVW-WR-PDUNHW genetic risk assessment test for colon cancer is on track to be introduced in early 2019. Following that, we plan to deliver a suite of new products in the next 12 months, including genetic risk assessment tests for: Blockchain technology presents a unique opportunity for GTG to contribute to the advancement of cancer research and to improve the health of individuals around the world. The security and privacy inherent in the blockchain provides a means by which individuals can share their genomic information while retaining control of their personal medical records. ] ] ] ] This grant demonstrates the growing acceptance of SNP-based genetic risk assessment in both WKH PHGLFDO DQG WKH VFLHQWL²F communities. The work addresses clinical validity, one of the key barriers to commercialisation of genetic risk assessment tests. As the sole commercial partner, GTG ZLOO KDYH WKH ULJKW RI ²UVW UHIXVDO WR FRPPHUFLDOLVH DQ\ QHZ VFLHQWL²F discoveries. Cardiovascular Disease Type 2 Diabetes Prostate Cancer Melanoma Our ambitious goals for the coming year are supported by a re-allocation of funding across the business to leverage the patents we hold and build on our intellectual property through investment in research and development. Building on GTG’s strategic alliance with Blockchain Global Limited, Gene Ventures entered into a collaboration agreement with The Shivom Project in March. This relationship opens channels for market entry into India and accelerates the validation of our testing protocols for the Indian population. The University of Melbourne is Australia’s highest ranking Research University. Blockchain t presents a unique opportunity for GTG to contribute to the advancement of cancer research and to improve the health of individuals around the world.

 

09 CONSUMER EMPOWERMENT Today, consumers are empowered to take control of their health in unprecedented ways. Over the coming months, we will introduce a platform that showcases our tests directly to consumers, while still maintaining their relationship with their primary care physician. CORPORATE BRAND In preparation for the introduction of a suite of new risk assessment tests, we are consolidating our product identities under the GeneType brand. Going forward, all products will be marketed under a single brand architecture and contribute to the company’s brand awareness in the market. We are redesigning our web presence, digital assets and product materials WR UH³HFW WKH QHZ EUDQG A pilot launch of a US based marketing campaign will seek to raise consumer awareness of WKH EHQH²WV RI *7*'V JHQHWLF ULVN assessment tests. We will reach out directly to individuals in our target demographic and support them and their physician through the process of: ] Evaluating whether the test is right for them Collecting and submitting a cheek-swab sample Communicating the results of the test Assisting the physician and the patient with the development of a personalised risk reduction plan We have seen the proliferation of at-home genealogy tests and are aware that some of these companies are venturing into health-related genetic testing. These “direct-to-consumer” products are not clinically validated tests and, as such, are not actionable by physicians. ] ] ] Our tests are clinically validated and actionable. They must be ordered by a physician. Physician oversight ensures that the patient fully comprehends the results of the test and is supported by ongoing healthcare management. ANNU AL REPOR T 2018

 

offers a clearer picture of breastcancer risk, combining clinical risk factors and genetic markers.

 

*(1(7,&5,6.$ 6 6(6 60(17 Estimating the susceptibility of an individual to disease (risk prediction) is central to clinical decision-making, especially in the context of early disease detection and prevention of common adult-onset chronic diseases. 11 Additionally, it can be a powerful motivational tool for personal health management when communicated and understood effectively. Concomitant with the research and development will be the establishment of new joint ventures to support the introduction and market penetration of these tests to new geographical areas, outside of our traditional US sales base. This increases the applicable market beyond the Caucasian-only LQGLFDWLRQ RI WKH ²UVW JHQHUDWLRQ WHVW, DQG VLPSOL²HV WKH PDUNHWLQJ messaging to medical clinics and breast health centres in the US. Traditionally, clinical risk prediction for the common chronic diseases has relied upon basic demographic characteristics, such as age and gender; basic clinical and lifestyle factors, such as body mass index, smoking status, alcohol consumption and physical exercise habits; measurement of clinical risk factors such as blood pressure levels, blood sugar levels, etc. The Company re-evaluated its test in order to increase widespread adoption as a general population screen, and in January 2017 released the ‘Enhanced’ BREVAGenplus. This new version of the test retains the accuracy of the previous model, while removing some of the clinical risk factors to streamline the test for ease-of-use. Additionally, this new version enables strict compliance with current guidelines for general population screening by reporting results on the 5 year risk score. THE HISTORY OF BREVAGenplus 7KH LGHQWL²FDWLRQ LQ 2007 RI a number of single nucleotide polymorphisms (SNPs), each with an associated small relative risk of breast cancer, led to the development of the ²UVW FRPPHUFLDOO\ DYDLODEOH JHQHWLF risk test for sporadic breast cancer, BREVAGen™. The Company launched the product, in the US in June 2011. Notably absent has been the incorporation of a genetic risk assessment. Building upon the science and academic collaborations which GHOLYHUHG WKH ²UVW FRPPHUFLDOO\ available breast cancer risk assessment test to combine clinical and genetic risk factors into a single test (BREVAGen and BREVAGenplus), The Company is embarking upon an ambitious research and development program to fast-track the development of multiple new risk assessment products. Over the course of WKLV ²QDQFLDO \HDU, ZH ZLOO VHHN WR introduce genetic risk assessment tests for a range of chronic diseases. In October 2014, Genetic Technologies released its next-generation breast cancer risk assessment test, BREVAGenplus. This version of the test incorporates a 10-fold expanded panel of genetic markers (SNPs), known to be associated with the development of sporadic breast cancer, providing an increase in predictive power relative WR LWV ²UVW-JHQHUDWLRQ SUHGHFHVVRU test. In addition, the test is clinically validated in a broader population of women including, African American and Hispanic women. The expanded panel of SNPs incorporated into BREVAGenplus ZHUH LGHQWL²HG IURP PXOWLSOH ODUJH-scale genome-wide association studies and subsequently tested in FDVH-FRQWURO VWXGLHV XWLOLVLQJ VSHFL²F Caucasian, African American and Hispanic patient samples. Proof of concept of the ‘Enhanced’ BREVAGenplus was independently validated within a JNCI manuscript published in 2015. ANNU AL REPOR T 2018

 

GENETIC RISK A S SES SMENT 2018 AND BEYOND: COLORECTAL CANCER RISK ASSESSMENT TEST Following is a list of peer-reviewed publications supporting the performance of both the BREVAGenplus and colorectal cancer tests to date: 8) “Economic Evaluation of Using a Genetic Test to Direct Breast Cancer Chemoprevention in White Women with a Previous Breast Biopsy”. Applied Health Economics and Health Policy. 2014 Apr; Vol. 12 (2):203-17. In 2016, Genetic Technologies announced the signing of an exclusive worldwide license agreement with The University of Melbourne for the development and commercialisation of a novel colorectal cancer risk assessment test. The core technology behind this test was developed by Professor Mark Jenkins and his research team at the University’s Centre for Epidemiology and Biostatistics. 1) “Bridging the Data Gap in Breast Cancer Risk Assessment to Enable Widespread Clinical Implementation across the Multiethnic Landscape of the US” Journal of Cancer Treatment and Diagnosis. 201;8 2(4):1-6. 9) “Using SNP genotypes to improve the discrimination of a simple breast cancer risk prediction model”. Breast Cancer Res Treat. 2013 Jun; Vol. 139 (3):887-96. 2) “Ability of known susceptibility SNPs to predict colorectal cancer risk for persons with and without a family history”. https://doi.org/10.1101/267666. 10) “Assessment of clinical validity of a breast cancer risk model combining genetic and clinical information”. J Natl Cancer Inst. 2010 Nov 3; Vol. 102 (21):1618-27. Results from preliminary modelling VWXGLHV ZHUH ²UVW SXEOLVKHG online in Future Oncology on 1 February 2016, in a paper entitled “Quantifying the utility of single nucleotide polymorphisms to guide colorectal cancer screening”. This simulated case-control study of 1 million patients indicated that a panel of 45 known susceptibility SNPs can stratify the population into clinically useful risk categories. In practice, the technology could be used to identify people at high risk for colon cancer who should be subjected to intensive screening. 7KRVH LGHQWL²HG DV ORZ ULVN FDQ be spared costly and invasive screening, thereby preventing DGYHUVH HYHQWV DQG XQMXVWL²HG expenses. 3) “Quantifying the utility of single nucleotide polymorphisms to guide colorectal cancer screening”. Future oncology (London, England), 12(4), 503-513 (2016). 12 4) “Prediction of breast cancer risk EDVHG RQ SUR²OLQJ ZLWK FRPPRQ genetic variants”. J Natl Cancer Inst. 2015; 107(5):doi:10.1093/jnci/ djv036. doi: 10.1093/jnci/djv036. 5) “Breast cancer risk prediction using clinical models and 77 independent risk-associated SNPs for women aged under 50: Australian Breast Cancer Family Registry” Cancer Epidemiology, Biomarkers and Prevention. 2016 Feb; 25(2):359-65. The University of Melbourne and Genetic Technologies have embarked on a robust, ongoing research collaboration enabling us to leverage the University’s renowned world-class expertise in SNP-based risk assessment and risk model development. The partnership with the University is comprehensive and highlights the Company’s overall corporate mission to become a leader in the genomics sector while enhancing its pipeline of risk assessment products. 6) “SNPs and breast cancer risk prediction for African American and Hispanic women”. Breast Cancer Research & Treatment. 2015 Dec; 4(3):583-9. 7) "Cost-effectiveness of a Genetic Test for Breast Cancer Risk”. Cancer Prevention Research. 2013 Dec; Vol. 6 (12):1328-36.

 

The University of Melbourne and Genetic Technologies have embarkedon a robust, ongoing research collaboration. 13 ANNU AL REPOR T 2018

 

 

GENETIC TECHNOLOGIES LIMITED S TATU TOR Y REPOR T S F OR THE YEAR ENDED 30 JUNE 2018 15/ 33/ DIRECTORS’ REPORT CORPORATE GOVERNANCE STATEMENT CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(LOSS) / 34 CONSOLIDATED BALANCE SHEET / 35 CONSOLIDATED STATEMENT OF CASH FLOWS / 36 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY / 37 38/ 78/ NOTES TO THE FINANCIAL STATEMENTS DIRECTORS’ DECLARATION / 71 AUDITOR’S INDEPENDENCE DECLARATION / 72 AUDITOR’S REPORT / 73 ASX ADDITIONAL INFORMATION CORPORATE INFORMATION / 80

 

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DIRECTORS’ REPOR T (PSOR\PHQW FRQWUDFWV 7KH IRUPHU &KLHI ([HFXWLYH 2I²FHU, 0U (XWLOOLR %XFFLOOL ZDV, XQWLO KLV GHSDUWXUH RQ 6 )HEUXDU\ 2018, HPSOR\HG XQGHU DQ RQJRLQJ FRQWUDFW GDWHG 25 )HEUXDU\ 2015 ZKLFK KDG WKH IROORZLQJ NH\ WHUPV DQG FRQGLWLRQV: 7KH NH\ SURYLVLRQV FRQWDLQHG LQ WKH HPSOR\PHQW FRQWUDFWV IRU RWKHU .H\ 0DQDJHPHQW 3HUVRQQHO LQ RI²FH DW WKH GDWH RI WKLV 5HSRUW DUH: 7KHUH DUH QR HPSOR\PHQW FRQWUDFWV LQ SODFH ZLWK DQ\ 1RQ-([HFXWLYH 'LUHFWRU RI WKH &RPSDQ\ 'U .DVLDQ, VXEVHTXHQW WR EHLQJ DSSRLQWHG DV &KDLUPDQ RQ 31 -DQXDU\ 2018, ZDV also appointed part time interim &(2 RQ 6 )HEUXDU\ 2018, IROORZLQJ WKH GHSDUWXUH RI 0U %XFFLOOL :KLOVW QR HPSOR\PHQW FRQWUDFW LV LQ SODFH ZLWK 'U .DVLDQ, KLV FXUUHQW EDVH VDODU\ RI $150,000 (LQFOXVLYH RI VWDWXWRU\ VXSHUDQQXDWLRQ FRQWULEXWLRQV) LQFOXGHV $48,262 DWWULEXWDEOH WR KLV LQWHULP H[HFXWLYH UROH, ZLWK WKH EDODQFH DWWULEXWDEOH WR KLV UROH DV &KDLUPDQ 6LPLODUO\, GXULQJ WKLV SHULRG RI VWUDWHJLF WUDQVLWLRQ, 'U 0XFKQLFNL KDV been appointed as part time %XVLQHVV 'HYHORSPHQW 'LUHFWRU ZLWK QR HPSOR\PHQW FRQWUDFW LQ SODFH 'U 0XFKQLFNL UHFHLYHV DQ DQQXDO WRWDO UHPXQHUDWLRQ RI $100,000 (LQFOXVLYH RI VWDWXWRU\ VXSHUDQQXDWLRQ FRQWULEXWLRQV), RI ZKLFK $37,381 LV DWWULEXWDEOH WR KLV LQWHULP H[HFXWLYH UROH, DQG WKH balance to his role as Director. Both 'U .DVLDQ DQG 'U 0XFKQLFNL¬V WRWDO HDUQLQJV DUH GLVFORVHG DV ([HFXWLYH UHPXQHUDWLRQ ] WKH ([HFXWLYH UHFHLYHV D EDVH VDODU\ DQG VWDWXWRU\ VXSHUDQQXDWLRQ FRQWULEXWLRQV, DV SUHVFULEHG XQGHU WKH 6XSHUDQQXDWLRQ *XDUDQWHH OHJLVODWLRQ, WRJHWKHU ZLWK FHUWDLQ 67, SD\PHQWV EDVHG RQ DFKLHYHPHQW RI .H\ 3HUIRUPDQFH ,QGLFDWRUV, DV DJUHHG ZLWK WKH &KLHI ([HFXWLYH 2I²FHU IURP WLPH WR WLPH; WKH ([HFXWLYH PD\ UHVLJQ IURP his/her position and terminate WKH FRQWUDFW E\ JLYLQJ XS WR WKUHH PRQWKV ZULWWHQ QRWLFH; WKH &RPSDQ\ PD\ WHUPLQDWH WKH FRQWUDFW E\ SURYLGLQJ XS WR three months written notice or SD\PHQW LQ OLHX RI QRWLFH; DQG WKH &RPSDQ\ PD\ WHUPLQDWH WKH FRQWUDFW ZLWKRXW QRWLFH LQ WKH HYHQW RI VHULRXV PLVFRQGXFW ,Q WKLV LQVWDQFH, HQWLWOHPHQWV WR ERWK 67, DQG /7, SD\PHQWV DUH forfeited and will lapse. ] %DVH VDODU\ RI $319,923 SOXV VWDWXWRU\ VXSHUDQQXDWLRQ FRQWULEXWLRQV DV SUHVFULEHG XQGHU WKH 6XSHUDQQXDWLRQ *XDUDQWHH OHJLVODWLRQ; 67, SD\PHQW HTXLYDOHQW WR D PD[LPXP RI 30% RI EDVH VDODU\ EDVHG RQ DFKLHYHPHQW RI .H\ 3HUIRUPDQFH ,QGLFDWRUV, DV DJUHHG ZLWK WKH %RDUG IURP WLPH WR WLPH; 1RWLFH SHULRG RI WKUHH PRQWKV; and 7KH FRQWUDFW PD\ EH WHUPLQDWHG DW DQ\ WLPH ZLWKRXW QRWLFH LI VHULRXV PLVFRQGXFW KDV RFFXUUHG :KHUH WHUPLQDWLRQ ZLWK FDXVH RFFXUV, KH LV RQO\ HQWLWOHG WR UHFHLYH WKDW SRUWLRQ RI UHPXQHUDWLRQ ZKLFK LV ²[HG DQG RQO\ XS WR WKH GDWH RI WHUPLQDWLRQ ,Q WKLV LQVWDQFH, DOO HQWLWOHPHQWV WR ERWK 67, DQG /7, DUH IRUIHLWHG DQG ZRXOG ODSVH ] ] ] 26 ] ] ] 5HPXQHUDWLRQ RI .H\ 0DQDJHPHQW 3HUVRQQHO (©.03ª) Post-employment Other long-term Share-based Short-term Salary/fees Other Superannuation* %ene²ts Options Totals Name and title of Year $ $ $ $ $ $ Non-Executive Directors 'U /LQGVD\ :DNH²HOG 2018 2017 57,186 56,065 5,433 5,326 62,619 61,391 - - - 0U 3HWHU 5XELQVWHLQ 1 2018 2017 23,827 - 2,264 - 26,091 - - - - 0U ;XH /HH 2 2018 2017 23,827 - 2,264 - 26,091 - - - - Dr Malcolm R. Brandon 3 2018 2017 54,198 91,089 5,149 8,653 59,347 99,742 - - - Grahame Leonard AM 4 2018 2017 33,358 56,065 3,169 5,326 36,527 61,391 - - - Totals 2018 2017 192,396 203,219 18,279 19,305 210,675 222,524 - - - 1. 2. 3. 4. Mr Rubinstein was appointed as a Non-executive Director on 31 January 2018. Mr Lee was appointed as a Non-executive Director on 31 January 2018. Dr Brandon resigned as the Non-executive Chairman on 30 January 2018. Mr Leonard resigned as a Director on 30 January 2018.

 

Post-Other Short-term employmentlong-term Share-based Termination bene²ts Superannuation* %ene²ts** Options*** Salary/fees Other Totals Name and title of Year $ $ $ $ $ $ Executives Directors 'U 3DXO .DVLDQ 1 Chairman & Interim CEO 2018 2017 89,099 56,065 8,464 5,326 44 - 97,607 61,391 - - - 'U -HU]\ 0XFKQLFNL 2 Business Development Director 2018 38,051 3,615 1,200 42,866 2017 - - - - - - - (XWLOOLR %XFFLOOL 3 Ex – Executive Director & Chief Executive 2I²FHU 2018 186,621 25,000 802 45,639 164,760 422,822 2017 313,650 33,000 32,566 19,297 45,639 - 444,152 Executives Diana Newport 4 Quality & Ops. Director 2018 2017 73,469 105,493 6,980 10,022 (10,137) 10,962 18,257 10,533 88,569 137,010 - - Dr Richard Allman 5 6FLHQWL²F 'LUHFWRU 2018 2017 165,294 162,053 49,588 8,100 16,472 16,526 (1,370) 12,528 23,407 17,287 253,391 216,494 27 - .HYLQ )LVFKHU 6 &KLHI )LQDQFLDO 2I²FHU 2018 2017 171,666 168,300 51,500 12,600 17,505 17,575 3,187 9,421 28,450 22,330 272,308 230,226 - &KULV 6DXQGHUV 7 US-VP Sales & Marketing 2018 2017 156,403 283,402 6,778 7,408 17,782 22,330 180,963 327,972 14,832 - - 'U 6XVDQ *URVV 8 US-Senior Medical Director 2018 41,545 1,867 (3,150) 40,262 2017 165,262 7,481 - 1,978 3,150 - 177,871 6XE-WRWDOV IRU ([HFXWLYHV 2018 2017 922,148 1,254,225 101,088 76,013 78,036 82,015 2,371 61,594 130,385 121,269 164,760 - 1,398,788 1,595,116 7RWDO UHPXQHUDWLRQ RI .H\ 0DQDJHPHQW Personnel 2018 1,114,544 101,088 96,315 2,371 130,385 164,760 1,609,463 2017 1,457,444 76,013 101,320 61,594 121,269 - 1,817,640 Notes pertaining to changes during the year: 1. Dr Kasian was appointed as the Chairman on 31 January 2018 and interim CEO on 6 February 2018, having previously served as a Non-Executive Director since his appointment in December 2013. Included in the 2018 total remuneration is an amount of $18,689 attributable to his executive role as interim CEO (2017: Nil). The 2017 fees are all Non-Executive Director fees. Dr Muchnicki was appointed as Business Development Director on 31 January 2018. Included in the 2018 total remuneration is an amount of $16,774 attributable to his executive role as Business Development Director. 0U %XFFLOOL VWHSSHG GRZQ IURP KLV SRVLWLRQ RI ([HFXWLYH 'LUHFWRU DQG &KLHI ([HFXWLYH 2I²FHU RQ 6 )HEUXDU\ 2078. ,QFOXGHG LQ WKH WHUPLQDWLRQ EHQH²WV SDLG WR 0U %XFFLOOL DUH ; 3 PRQWKV¬ QRWLFH SD\: SUR-UDWD ERQXV HQWLWOHPHQW FDOFXODWHG XS WR WKDW GDWH being 3 months from the 6th February 2018. Ms Newport held the role of Quality and Operations Director until her resignation on 1 May 2018. “Other” includes a bonus paid or payable to Dr Allman in the amount of $49,588 under a retention bonus scheme awarded to KMP. “Other” includes a bonus paid or payable to Mr Fischer in the amount of $51,500 under a retention bonus scheme awarded to KMP. Mr Saunders held the role of Vice President Sales and Marketing for Phenogen Sciences Inc. (USA) until his termination on 30 November 2017. Dr Gross held the role of Senior Medical Director for Phenogen Sciences Inc. (USA) until her termination on 15 September 2017. 2. 3. 4. 5. 6. 7. 8. Referencing the previous two tables: *3RVW-HPSOR\PHQW EHQH²WV DV SHU &RUSRUDWLRQV 5HJXODWLRQ 20.3.03(7) ,WHP 7. ** 2WKHU ORQJ-WHUP EHQH²WV DV SHU &RUSRUDWLRQV 5HJXODWLRQ 20.3.03(7) ,WHP 8. *** Equity settled share-based payments as per Corporations Regulation 2M.3.03(1) Item 11. 7KH GHWDLOV RI WKRVH ([HFXWLYHV QRPLQDWHG DV .H\ 0DQDJHPHQW 3HUVRQQHO XQGHU VHFWLRQ 300$ RI WKH &RUSRUDWLRQV $FW 2001 KDYH EHHQ GLVFORVHG LQ WKLV 5HSRUW 1R RWKHU HPSOR\HHV RI WKH &RPSDQ\ PHHW WKH GH²QLWLRQ RI ©.H\ 0DQDJHPHQW 3HUVRQQHOª DV GH²QHG LQ ,$6 24/($$6% 124) 5HODWHG 3DUW\ 'LVFORVXUHV, RU ©VHQLRU PDQDJHUª DV GH²QHG in the Corporations Act 2001. ANNU AL REPOR T 2018

 

DIRECTORS’ REPOR T 2SWLRQV H[HUFLVHG, JUDQWHG, DQG IRUIHLWHG DV SDUW RI UHPXQHUDWLRQ GXULQJ WKH \HDU HQGHG 30 -XQH 2018 'HWDLOV RI WKH RSWLRQV KHOG E\ WKH ([HFXWLYHV QRPLQDWHG DV .H\ 0DQDJHPHQW 3HUVRQQHO GXULQJ WKH \HDU HQGHG 30 -XQH 2018 DUH VHW RXW EHORZ $V DW 30 -XQH 2018, WKHUH ZHUH 3 H[HFXWLYHV DQG 1 HPSOR\HH ZKR KHOG RSWLRQV WKDW KDG EHHQ JUDQWHG XQGHU WKH &RPSDQ\¬V UHVSHFWLYH RSWLRQ SODQV 'XULQJ WKH 2018 ²QDQFLDO \HDU QR RSWLRQV JUDQWHG DV HTXLW\ FRPSHQVDWLRQ EHQH²WV WR ([HFXWLYHV ZHUH H[HUFLVHG, DQG QR QHZ RSWLRQV ZHUH JUDQWHG DV HTXLW\ FRPSHQVDWLRQ EHQH²WV WR ([HFXWLYHV 7KH IROORZLQJ RSWLRQV SUHYLRXVO\ JUDQWHG DV HTXLW\ FRPSHQVDWLRQ EHQH²WV WR ([HFXWLYHV ZHUH IRUIHLWHG GXULQJ WKH \HDU: Options forfeited Exercise price Fair value per option Final vesting date Name of Executive Diana Newport 4,000,000 $0 01 $0 0050 16 )HE 2022 Diana Newport 2,500,000 $0 02 $0 0026 31 Mar 2021 &KULV 6DXQGHUV 5,000,000 $0 01 $0 0050 16 )HE 2022 &KULV 6DXQGHUV 5,000,000 $0 02 $0 0024 24 1RY 2020 'U 6XVDQ *URVV 2,500,000 $0 01 $0 0050 16 )HE 2022 Totals 19,000,000 28 2SWLRQV H[HUFLVHG, JUDQWHG DQG IRUIHLWHG DV SDUW RI UHPXQHUDWLRQ GXULQJ WKH \HDU HQGHG 30 -XQH 2017 'XULQJ WKH 2017 ²QDQFLDO \HDU 21,500,000 RSWLRQV ZHUH JUDQWHG DV HTXLW\ FRPSHQVDWLRQ EHQH²WV WR ([HFXWLYHV No options were exercised or forfeited. )DLU YDOXHV RI RSWLRQV )DLU YDOXHV DW JUDQW GDWH DUH LQGHSHQGHQWO\ GHWHUPLQHG XVLQJ D %ODFN-6FKROHV RSWLRQ SULFLQJ PRGHO WKDW WDNHV LQWR DFFRXQW WKH H[HUFLVH SULFH, WKH WHUP RI WKH RSWLRQ, WKH VKDUH SULFH DW JUDQW GDWH DQG H[SHFWHG SULFH YRODWLOLW\ RI WKH XQGHUO\LQJ VKDUH, WKH H[SHFWHG GLYLGHG \LHOG DQG WKH ULVN-IUHH LQWHUHVW UDWH IRU WKH WHUP RI WKH RSWLRQ 2SWLRQ KROGLQJV RI .H\ 0DQDJHPHQW 3HUVRQQHO 30 -XQH 2018 Number of options Vesting as at year end Financial year in which options vest Fair value yet to vest $ Name of option holder Opening balance Closing balance Not Exercisable exercisable Granted Exercised Lapsed Executive 3DXO Kasian - - - - - - - - - -HU]\ 0XFKQLFNL* 6,666,667 - - - 6,666,667 6,666,667 - 2015 - (XWLOOLR %XFFLOOL 14,236,111 - - - 14,236,111 14,236,111 - 2018 - Diana Newport 6,500,000 - - (6,500,000) - - - - - Richard Allman 10,000,000 - - - 10,000,000 6,666,667 3,333,333 2019 16,667 .HYLQ )LVFKHU 10,000,000 - - - 10,000,000 6,666,667 3,333,333 2019 16,667 Chris 6DXQGHUV 10,000,000 - - (10,000,000) - - - - - 6XVDQ Gross 2,500,000 - - (2,500,000) - - - - - Totals 59,902,778 - - (19,000,000) 40,902,778 34,236,112 6,666,666 33,334 * Options held by Dr Muchnicki when appointed as a Director on 31 January 2018.

 

2SWLRQ KROGLQJV RI .H\ 0DQDJHPHQW 3HUVRQQHO 30 -XQH 2017 Number of options Vesting as at year end Financial year in which options vest Fair value yet to vest $ Name of option holder Opening balance Closing balance Not exercisable Granted Exercised Lapsed Exercisable Executive (XWLOOLR %XFFLOOL 14,236,111 - - - 14,236,111 7,118,055 7,118,056 2018 90,777 Diana Newport 2,500,000 4,000,000 - - 6,500,000 1,250,000 5,250,000 2019 30,719 Richard Allman 5,000,000 5,000,000 - - 10,000,000 2,500,000 7,500,000 2019 46,438 .HYLQ )LVFKHU 5,000,000 5,000,000 - - 10,000,000 2,500,000 7,500,000 2019 56,883 Chris 6DXQGHUV 5,000,000 5,000,000 - - 10,000,000 2,500,000 7,500,000 2019 56,883 6XVDQ Gross - 2,500,000 - - 2,500,000 - 2,500,000 2019 20,000 29 Totals 31,736,111 21,500,000 - - 53,236,111 15,868,055 37,368,056 301,700 * Options vest and are exercisable at any time after the date on which they meet the vesting conditions as described in the QRWHV WR WKH ²QDQFLDO UHSRUW EHORZ. 6KDUHKROGLQJV RI .H\ 0DQDJHPHQW 3HUVRQQHO 30 -XQH 2018 Number of shares Shares held in Genetic Technologies Limited Opening balance Bought Sold Closing balance Director Dr Malcolm Brandon 1 - - - - 0U (XWLOOLR %XFFLOOL 2 - - - - Mr Grahame Leonard AM 1 6,000,000 - - 6,000,000 'U 3DXO .DVLDQ 256,410 - - 256,410 'U /LQGVD\ :DNH²HOG 8,325,263 - - 8,325,263 'U -HU]\ 0XFKQLFNL 3 20,903,244 - - 20,903,244 0U 3HWHU 5XELQVWHLQ 3 47,282,700 - - 47,282,700 0U ;XH /HH 3 59,594,850 - - 59,594,850 Executive Dr Richard Allman - - - - Diana Newport 4 - - - - .HYLQ )LVFKHU - - - - &KULV 6DXQGHUV 5 - - - - 6XVDQ *URVV 6 - - - - Totals 142,362,467 - - 142,362,467 1. 2. 3 . Dr Brandon and Mr Leonard were Directors from the start of the year to 30 January 2018. Mr Buccilli was a Director from the start of the year to 6 February 2018. Opening Balance for Dr Muchnicki, Mr Rubinstein and Mr Lee refers to the number of shares held directly and indirectly on appointment as a Director on 31 January 2018. Ms Newport was a KMP from the start of the year to 1 May 2018. Mr Saunders was a KMP from the start of the year to 30 November 2017. Ms Gross was a KMP from the start of the year to 15 September 2017. 4. 5. 6. 7KHUH ZHUH QR ORDQV WR/IURP .H\ 0DQDJHPHQW 3HUVRQQHO GXULQJ WKH ²QDQFLDO \HDUV HQGLQJ 2018 DQG 2017 (QG RI 5HPXQHUDWLRQ 5HSRUW ANNU AL REPOR T 2018

 

DIRECTORS’ REPOR T AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES $XGLWRU LQGHSHQGHQFH 7KH 'LUHFWRUV RI *HQHWLF 7HFKQRORJLHV /LPLWHG KDYH UHFHLYHG DQ LQGHSHQGHQFH GHFODUDWLRQ IURP 3ULFHZDWHUKRXVH&RRSHUV, WKH &RPSDQ\¬V DXGLWRU, DV UHSURGXFHG LPPHGLDWHO\ IROORZLQJ WKH 'LUHFWRUV¬ 'HFODUDWLRQ RQ SDJH 72 RI WKH )LQDQFLDO 5HSRUW 1RQ DXGLW VHUYLFHV 'XULQJ WKH ²QDQFLDO \HDU, WKH IROORZLQJ IHHV ZHUH SDLG RU SD\DEOH WR WKH DXGLWRUV RI *HQHWLF 7HFKQRORJLHV /LPLWHG DQG LWV VXEVLGLDULHV LQ UHVSHFW RI ERWK DXGLW DQG QRQ-DXGLW VHUYLFHV: Consolidated 2018 $ 2017 $ 30 7.$XGLW IHHV FRQVLVW RI VHUYLFHV WKDW ZRXOG QRUPDOO\ EH SURYLGHG LQ FRQQHFWLRQ ZLWK VWDWXWRU\ DQG UHJXODWRU\ ²OLQJV RU engagements, including services that generally only the independent accountant can reasonably provide. ENVIRONMENTAL REGULATION 7KH &RPSDQ\ LV QRW DZDUH RI DQ\ EUHDFKHV RI DQ\ HQYLURQPHQWDO UHJXODWLRQ GXULQJ WKH 2018 ²QDQFLDO \HDU ROUNDING OF AMOUNTS 7KH &RPSDQ\ LV RI D NLQG UHIHUUHG WR LQ $6,& &RUSRUDWLRQV (5RXQGLQJ LQ )LQDQFLDO/'LUHFWRU¬V UHSRUWV) ,QVWUXPHQW 2016/191, LVVXHG E\ WKH $XVWUDOLDQ DQG 6HFXULWLHV DQG ,QYHVWPHQWV &RPPLVVLRQ, UHODWLQJ WR WKH ©URXQGLQJ RIIª RI DPRXQWV LQ WKH 'LUHFWRUV¬ 5HSRUW $PRXQWV LQ WKH 'LUHFWRUV¬ 5HSRUW KDYH EHHQ URXQGHG RII LQ DFFRUGDQFH ZLWK WKDW Class order to the nearest dollar. PROCEEDINGS ON BEHALF OF THE COMPANY 1R SURFHHGLQJV KDYH EHHQ EURXJKW RU LQWHUYHQHG LQ RU RQ EHKDOI RI WKH &RPSDQ\ ZLWK OHDYH WR WKH &RXUW XQGHU section 237 of the Corporations Act 2001. Audit and assurance services 3ULFHZDWHUKRXVH&RRSHUV LQ UHVSHFW RI: $XGLW 1 288,200 325,972 $XGLW UHODWHG 107,451 2WKHU DXGLW ²UPV LQ UHVSHFW RI: $XGLW RI WKH )LQDQFLDO 5HSRUWV RI VXEVLGLDULHV 4,070 7RWDO UHPXQHUDWLRQ LQ UHVSHFW RI DXGLW VHUYLFHV 288,200 437,493

 

DIRECTORS’ MEETINGS 0HHWLQJ DWWHQGDQFHV 7KH QXPEHU RI PHHWLQJV RI 'LUHFWRUV (LQFOXGLQJ WKH PHHWLQJV RI 6XE-&RPPLWWHHV RI WKH %RDUG) KHOG GXULQJ WKH ²QDQFLDO \HDU, DQG WKH QXPEHU RI VXFK PHHWLQJV DWWHQGHG E\ HDFK 'LUHFWRU, ZHUH DV IROORZV: Directors’ meetings Audit Committee meetings Remuneration Committee meetings Attended Eligible Attended Eligible Attended Eligible Dr Malcolm Brandon 9 9 - - - - 0U (XWLOOLR %XFFLOOL 9 9 - - 2 2 Mr Grahame Leonard A.M. 8 9 2 3 - - 'U 3DXO .DVLDQ 15 15 3 3 3 3 'U /LQGVD\ :DNH²HOG 15 15 5 5 3 3 'U -HU]\ 0XFKQLFNL 6 6 2 2 - - 0U 3HWHU 5XELQVWHLQ 6 6 2 2 1 1 0U ;XH /HH 3 6 - - - - 6XE FRPPLWWHH PHPEHUVKLS $V DW WKH GDWH RI WKLV 5HSRUW, WKH FRPSRVLWLRQ RI WKH 6XE-&RPPLWWHHV DUH: 31 Audit Committee Remuneration Committee 0U 3HWHU 5XELQVWHLQ Chairman of the Committee 'U /LQGVD\ :DNH²HOG Chairman of the Committee 'U /LQGVD\ :DNH²HOG 'U 3DXO .DVLDQ 'U -HU]\ 0XFKQLFNL 0U 3HWHU 5XELQVWHLQ 6LJQHG LQ DFFRUGDQFH ZLWK D UHVROXWLRQ RI WKH 'LUHFWRUV '5 3$8/ .$6,$1 Chairman 0HOERXUQH, 30 $XJXVW 2018 ANNU AL REPOR T 2018

 

Our patented tests aredesigned to predict an individual’s risk of developing chronic disease.

 

& 25325 $7(*29(51$1&(6 7$7(0(17 Genetic Technologies Limited (the “Company”) and its Board are committed to achieving the leading standards of corporate governance. 33 5HIHUHQFH LV PDGH WR WKH UHYLVHG &RUSRUDWH *RYHUQDQFH 3ULQFLSOHV DQG 5HFRPPHQGDWLRQV LVVXHG DQG UHYLVHG IURP WLPH WR WLPH E\ WKH $6; &RUSRUDWH *RYHUQDQFH &RXQFLO 7KH %RDUG EHOLHYHV WKDW DOO FRQFHSWV RI WKH UHYLVHG Principles and Recommendations KDYH EHHQ VDWLV²HG, KRZHYHU WKH Board is realistic with respect to WKH UHODWLYH VL]H DQG QDWXUH RI WKH &RPSDQ\ DQG KDYH LPSOHPHQWHG WKH 5HFRPPHQGDWLRQV DFFRUGLQJO\ 7KH &RPSDQ\ HQGHDYRXUV WR HQVXUH H[FHSWLRQV WR WKH JXLGHOLQHV GR QRW KDYH QHJDWLYH LPSDFW RQ WKH EHVW interests of shareholders. While in most respects the &RPSDQ\ FRPSOLHV ZLWK WKH 5HFRPPHQGDWLRQV, LW LV UHFRJQLVHG WKDW WKH GHYHORSPHQW DQG implementation of policies and practices is an ongoing process WKDW HYROYHV ZLWK WKH QHHGV RI WKH EXVLQHVV DQG LWV VWDNHKROGHUV Risk Assessment Report geneType Fitzroy Victoria 3065 $6; /LVWLQJ 5XOH 4 10 3 UHTXLUHV DQ HQWLW\ WKDW LV LQFOXGHG LQ WKH RI²FLDO OLVW DV DQ $6; /LVWLQJ WR LQFOXGH LQ LWV DQQXDO UHSRUW HLWKHU D FRUSRUDWH JRYHUQDQFH VWDWHPHQW WKDW PHHWV WKH UHTXLUHPHQWV RI WKDW UXOH RU the URL of the page on its website ZKHUH VXFK D VWDWHPHQW LV ORFDWHG 7KH &RPSDQ\ WKHUHIRUH DGYLVHV WKDW WKH FXUUHQW FRUSRUDWH JRYHUQDQFH VWDWHPHQW DQG D VXPPDU\ RI LWV PDLQ FRUSRUDWH JRYHUQDQFH SUDFWLFHV DV DSSURYHG E\ WKH %RDUG RQ 30 $XJXVW 2018 PD\ EH IRXQG YLD WKH IROORZLQJ OLQN RQ WKH &RPSDQ\¬V ZHEVLWH: KWWS://ZZZ JWJFRUSRUDWH FRP/ LQYHVWRU-FHQWUH/FRUSRUDWH-JRYHUQDQFH ANNU AL REPOR T 2018 Breast Cancer Dear Jessica, Genetype Pty Ltd These are the findings from your GeneType BreastABN 000 000 000 Cancer Risk Assessment Report. 60 Hanover Street Lorem ipsum dolor sit amet, consectetur adipiscing elit. Australia Aliquam in dolor aliquam, semper leo quis, convallis urna. info@genetype.com.au Donec lorem elit, vehicula nec nulla id, ornare ornare erat. genetype.com.au Aenean efficitur orci sit amet ultricies condimentum. Take control. Aliquam sit amet sem maximus, porta nulla rhoncus, luctus felis. Curabitur sed urna sollicitudin, venenatis nibh a, molestie dolor. Phasellus vehicula dolor vitae dui aliquam sodales. Vestibulum eget tempus orci. Your test result XX% average above average Recommendations & next steps Consult ScheduleOther an expert regularcall to action oncologist checkups goes here Suspendisse vel mi Etiam elit ex, Lorem ipsum uspe eros. Vestibulum mollis in sapien et, ndisse vel mi eros. rostiment wehicula.tempus congue.Vestib rehicula.

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME / (LOSS) ) 25 7+( <($5 (1'(' 30 -81( 2018 Consolidated 2018 2017 Notes $ $ 34 7KH DERYH FRQVROLGDWHG VWDWHPHQW RI FRPSUHKHQVLYH LQFRPH I (ORVV) VKRXOG EH UHDG LQ FRQMXQFWLRQ ZLWK WKH DFFRPSDQ\LQJ QRWHV. Revenue from operations – genetic testing services 189,254 518 506 /HVV FRVW RI VDOHV4 (300,088) (492 417) Gross pro²t from operations – genetic testing services (110,834) 26 089 2WKHU LQFRPH 5 441,476 344 112 )RUHLJQ H[FKDQJH JDLQV UHFODVVL²HG RQ OLTXLGDWLRQ RI VXEVLGLDU\ 6 527,049 - 6HOOLQJ DQG PDUNHWLQJ H[SHQVHV (1,066,404) (2 721 474) *HQHUDO DQG DGPLQLVWUDWLYH H[SHQVHV (3,144,178) (2 933 659) /DERUDWRU\ DQG UHVHDUFK DQG GHYHORSPHQW FRVWV (2,210,498) (2 366 334) )LQDQFH FRVWV (28,843) (31 995) ,PSDLUPHQW RI LQWDQJLEOH DVVHWV H[SHQVH (544 694) 1HW IRUHLJQ H[FKDQJH JDLQV I (ORVVHV) 128,360 (175 871) Loss from operations before income tax expense (5,463,872) (8 403 826) ,QFRPH WD[ H[SHQVH8 - Loss for the year (5,463,872) (8 403 826) Other comprehensive (loss) / pro²t ,WHPV WKDW PD\ EH UHFODVVL²HG WR SUR²W RU ORVV ([FKDQJH (ORVV) I JDLQV RQ WUDQVODWLRQ RI FRQWUROOHG IRUHLJQ RSHUDWLRQV (522,966) (130 655) Other comprehensive (loss) / pro²t for the year, net of tax (522,966) (130 655) Total comprehensive loss for the year (5,986,838) (8 534 481) Loss for the year is attributable to: 2ZQHUV RI *HQHWLF 7HFKQRORJLHV /LPLWHG (5,463,872) (8 403 826) Total loss for the year (5,463,872) (8 403 826) Total comprehensive loss for the year is attributable to: 2ZQHUV RI *HQHWLF 7HFKQRORJLHV /LPLWHG (5,986,838) (8 534 481) Total comprehensive loss for the year (5,986,838) (8 534 481) Loss per share attributable to owners of the Company and from operations: %DVLF ORVV SHU VKDUH (FHQWV SHU VKDUH)9 (0.22) (0.40) 'LOXWHG ORVV SHU VKDUH (FHQWV SHU VKDUH)9 (0.22) (0.40)

 

CONSOLIDATED BALANCE SHEET $ 6 $7 30 -81( 2018 Consolidated 2018 2017 Notes $ $ 35 7KH DERYH FRQVROLGDWHG EDODQFH VKHHW VKRXOG EH UHDG LQ FRQMXQFWLRQ ZLWK WKH DFFRPSDQ\LQJ QRWHV. ANNU AL REPOR T 2018 ASSETS Current assets &DVK DQG FDVK HTXLYDOHQWV10 5,487,035 10 988 255 7UDGH DQG RWKHU UHFHLYDEOHV11 301,383 426 272 3UHSD\PHQWV DQG RWKHU DVVHWV12 202,279 217 122 Total current assets 5,990,697 11 631 649 Non-current assets 3URSHUW\ SODQW DQG HTXLSPHQW13 175,284 476 648 Total non-current assets 175,284 476 648 Total assets 6,165,981 12 108 297 LIABILITIES Current liabilities 7UDGH DQG RWKHU SD\DEOHV15 945,130 898 103 3URYLVLRQV16 505,583 567 190 Total current liabilities 1,450,713 1 465 293 Non-current liabilities 3URYLVLRQV16 3,390 63 960 Total non-current liabilities 3,390 63 960 Total liabilities 1,454,103 1 529 253 Net assets 4,711,878 10 579 044 EQUITY &RQWULEXWHG HTXLW\17 122,372,662 122 382 625 5HVHUYHV18 5,651,162 6 044 493 $FFXPXODWHG ORVVHV 19 (123,311,946) (117 848 074) Total equity 4,711,878 10 579 044

 

CONSOLIDATED STATEMENT OF CASH FLOWS ) 25 7+( <($5 (1'(' 30 -81( 2018 Consolidated 2018 2017 Notes $ $ 36 7KH DERYH FRQVROLGDWHG VWDWHPHQW RI FDVK ³RZV VKRXOG EH UHDG LQ FRQMXQFWLRQ ZLWK WKH DFFRPSDQ\LQJ QRWHV. Cash ³ows (used in) / from operating activities 5HFHLSWV IURP FXVWRPHUV 758,452 964 520 3D\PHQWV WR VXSSOLHUV DQG HPSOR\HHV (6,394,985) (7 816 924) ,QWHUHVW UHFHLYHG 15,218 38 765 Net cash ³ows used in operating activities10 (5,621,315) (6 813 639) Cash ³ows (used in) / from investing activities 3URFHHGV IURP WKH VDOH RI SODQW DQG HTXLSPHQW 52 650 3XUFKDVHV RI SODQW DQG HTXLSPHQW (2,385) (234 799) Net cash ³ows (used in) / from investing activities (2,385) (182 149) Cash ³ows from / (used in) ²nancing activities 3URFHHGV IURP WKH LVVXH RI VKDUHV 8 049 369 (TXLW\ WUDQVDFWLRQ FRVWV (9,963) (1 234 430) )DFLOLW\ IHH UHEDWH 295 110 Net cash ³ows from / (used in) ²nancing activities (9,963) 7 110 049 Net increase / (decrease) in cash and cash equivalents (5,633,663) 114 261 &DVK DQG FDVK HTXLYDOHQWV DW EHJLQQLQJ RI \HDU 10,988,255 11 179 687 Net foreign exchange difference 132,443 (305 693) Cash and cash equivalents at end of year 10 5,487,035 10 988 255

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ) 25 7+( <($5 (1'(' 30 -81( 2018 Contributed equity Accumulated losses Total equity Reserves Consolidated $ $ $ $ Balance at 30 June 2016 115,272,576 6,054,861 (109,444,248) 11,883,189 /RVV IRU WKH \HDU - - (8 403 826) (8 403 826) 2WKHU FRPSUHKHQVLYH ORVV - (130 655) - (130 655) Total comprehensive income / loss - (130 655) (8 403 826) (8 534 481) Transactions with owners in their capacity as owners &RQWULEXWLRQV RI HTXLW\ (QHW RI WUDQVDFWLRQ FRVWV) 6 814 939 - - 6 814 939 6KDUH-EDVHG SD\PHQWV - 120 287 - 120 287 6KDUH IDFLOLW\ IHH UHEDWH 295 110 - - 295 110 7 110 049 120 287 - 7 230 336 37 Balance at 30 June 2017 122,382,625 6,044,493 (117,848,074) 10,579,044 7KH DERYH FRQVROLGDWHG VWDWHPHQW RI FKDQJHV LQ HTXLW\ VKRXOG EH UHDG LQ FRQMXQFWLRQ ZLWK WKH DFFRPSDQ\LQJ QRWHV. ANNU AL REPOR T 2018 /RVV IRU WKH \HDU - - (5 463 872)(5 463 872) 2WKHU FRPSUHKHQVLYH ORVV - (522 966) - (522 966) Total comprehensive loss - (522 966) (5 463 872)(5 986 838) Transactions with owners in their capacity as owners &RQWULEXWLRQV RI HTXLW\ (QHW RI WUDQVDFWLRQ FRVWV) (9 963)-- (9 963) 6KDUH-EDVHG SD\PHQWV - 129 635 - 129 635 6KDUH IDFLOLW\ IHH UHEDWH - - - - (9 963)129 635 - 119 672 Balance at 30 June 2018 122,372,662 5,651,162(123,311,946)4,711,878

 

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Consolidated 2018 2017 $ $ 4. COST OF SALES 1.Inventories written off include $24,506 (2017: $53,856) of items that expired during the year. 5. OTHER INCOME 47 6. FOREIGN EXCHANGE GAIN RECLASSIFIED ON LIQUIDATION OF SUBSIDIARY Total gain is attributable to the liquidation of GeneType AG, a dormant subsidiary, that was completed on 13 December 2017. 7. EXPENSES ANNU AL REPOR T 2018 Amortisation of intangible assets 63,783 'HSUHFLDWLRQ RI ²[HG DVVHWV 303,749 307,828 (PSOR\HH EHQH²W H[SHQVHV 2,657,232 3,594,936 2SHUDWLQJ OHDVH H[SHQVHV 326,192 310,413 5HVHDUFK DQG GHYHORSPHQW H[SHQVHV 459,026 418,598 5HFODVVL²FDWLRQ RI QHW IRUHLJQ H[FKDQJH JDLQV SUHYLRXVO\ UHFRJQLVHG LQ RWKHU FRPSUHKHQVLYH LQFRPH, UHFODVVL²HG WR SUR²W RU ORVV 527,049 - 7RWDO JDLQ RQ OLTXLGDWLRQ RI VXEVLGLDU\ 527,049 - 1HW SUR²W RQ GLVSRVDO RI SODQW DQG HTXLSPHQW 52,188 5HVHDUFK DQG GHYHORSPHQW WD[ LQFHQWLYH 299,351 253,159 ([SRUW 0DUNHWLQJ DQG 'HYHORSPHQW *UDQW 126,907 - ,QWHUHVW LQFRPH 15,218 38,765 Total other income 441,476 344,112 ,QYHQWRULHV XVHG 93,869 172,070 'LUHFW ODERXU FRVWV 88,690 152,767 Depreciation expense 65,853 71,139 ,QYHQWRULHV ZULWWHQ RII 1 51,676 96,441 Total cost of sales 300,088 492,417

 

NOTES TO THE FINANCIAL S TATEMENT S Consolidated 2018 2017 $ $ 8. INCOME TAX 48 Reconciliation of income tax expense to prima facie tax payable Loss before income tax expense (5,463,872) (8,403,826) 7D[ DW WKH $XVWUDOLDQ WD[ UDWH RI 27 50% (1,502,565) (2,311,052) Tax effect amounts which are not deductible/(taxable) in calculating taxable income 6KDUH-EDVHG SD\PHQWV H[SHQVH 35,650 33,079 5HVHDUFK DQG GHYHORSPHQW WD[ LQFHQWLYH 148,346 108,163 2WKHU DVVHVVDEOH LWHPV 81,155 Withholding tax expense - 2WKHU QRQ-GHGXFWLEOH LWHPV 1,509 1,257 (1,317,060) (2,087,398) 'LIIHUHQFH LQ RYHUVHDV WD[ UDWHV 67,557 (96,775) 8QGHU/(RYHU) SURYLVLRQ (268,092) (75,054) 5HVHDUFK DQG GHYHORSPHQW WD[ FUHGLW (82,322) (69,619) Tax losses not recognised 1,599,917 2,328,846 ,QFRPH WD[ H[SHQVH - Net deferred tax assets Deferred tax assets not recognised 3URSHUW\, SODQW DQG HTXLSPHQW 1,381 2,802 Capital raising costs 347,370 320,417 ,QWDQJLEOH DVVHWV 1,949,601 2,003,505 3URYLVLRQV 201,492 333,103 2WKHU - Total deferred tax assets 2,499,844 2,659,827 Deferred tax liabilities not recognised 3UHSD\PHQWV - Total deferred tax liabilities - 1HW GHIHUUHG WD[ DVVHWV RQ WHPSRUDU\ GLIIHUHQFHV QRW EURXJKW WR DFFRXQW (2,499,844) (2,659,827) Total net deferred tax assets - Tax losses 8QXVHG WD[ ORVVHV IRU ZKLFK QR GHIHUUHG WD[ DVVHW KDV EHHQ UHFRJQLVHG 87,970,140 80,706,629 3RWHQWLDO WD[ EHQH²W 22,596,182 22,194,323

 

8. INCOME TAX &217,18(' 6XEMHFW WR WKH *URXS FRQWLQXLQJ WR PHHW WKH UHOHYDQW VWDWXWRU\ WHVWV, WKH WD[ ORVVHV DUH DYDLODEOH IRU RIIVHW DJDLQVW IXWXUH WD[DEOH LQFRPH been recognised as a deferred WD[ DVVHW WR WKH *URXS 7KHVH XQUHFRJQLVHG GHIHUUHG WD[ DVVHWV ZLOO RQO\ EH REWDLQHG LI: (D) 7KH *URXS FRPSDQLHV GHULYH IXWXUH DVVHVVDEOH LQFRPH RI D QDWXUH DQG DPRXQW VXI²FLHQW WR HQDEOH WKH EHQH²WV WR EH UHDOLVHG; (E) 7KH *URXS FRPSDQLHV FRQWLQXH WR FRPSO\ ZLWK WKH FRQGLWLRQV IRU GHGXFWLELOLW\ LPSRVHG E\ WKH ODZ; DQG (F) No changes in tax legislation DGYHUVHO\ DIIHFW WKH *URXS companies from realising WKH EHQH²W 7KH HQWLWLHV KDYH DOVR HQWHUHG LQWR D 7D[ )XQGLQJ $JUHHPHQW XQGHU ZKLFK WKH ZKROO\-RZQHG HQWLWLHV IXOO\ FRPSHQVDWH *HQHWLF 7HFKQRORJLHV /LPLWHG IRU DQ\ FXUUHQW WD[ SD\DEOH DVVXPHG DQG DUH FRPSHQVDWHG E\ *HQHWLF 7HFKQRORJLHV /LPLWHG IRU DQ\ FXUUHQW WD[ UHFHLYDEOH DQG GHIHUUHG WD[ DVVHWV UHODWLQJ WR XQXVHG WD[ ORVVHV RU XQXVHG WD[ FUHGLWV WKDW DUH transferred to Genetic Technologies /LPLWHG XQGHU WKH WD[ FRQVROLGDWLRQ OHJLVODWLRQ 7KH IXQGLQJ DPRXQWV DUH GHWHUPLQHG E\ UHIHUHQFH WR WKH DPRXQWV UHFRJQLVHG LQ WKH UHVSHFWLYH VXEVLGLDULHV¬ ²QDQFLDO statements. $W 30 -XQH 2018, WKH JURXS KDG D SRWHQWLDO WD[ EHQH²W UHODWHG WR WD[ ORVVHV FDUULHG IRUZDUG RI $22,596,182 6XFK DPRXQW LQFOXGHV QHW ORVVHV RI $5,155,038 UHODWHG WR VXEVLGLDULHV LQ WKH 8QLWHG 6WDWHV (86) 7KH 7D[ &XWV DQG -REV $FW (7&-$) HQDFWHG E\ &RQJUHVV LQ WKH 86 RQ 22 'HFHPEHU 2017 FXW WKH WRS FRUSRUDWH LQFRPH WD[ UDWH IURP 35% WR 21% )RU WD[ \HDUV EHJLQQLQJ DIWHU 'HFHPEHU 31, 2017, WKH JUDGXDWHG FRUSRUDWH WD[ UDWH VWUXFWXUH LV HOLPLQDWHG and corporate taxable income will EH WD[HG DW 21-SHUFHQW ³DW UDWH $GGLWLRQDOO\, WKH SUHYLRXV 20-\HDU OLPLWDWLRQ RQ FDUU\ IRUZDUG QHW RSHUDWLQJ ORVVHV (12/¬V) KDV EHHQ UHPRYHG, DOORZLQJ WKH 12/¬V WR EH FDUULHG IRUZDUG LQGH²QLWHO\ 7KH remaining tax losses carried forward RI $17,441,144 DUH LQGH²QLWH DQG DUH DWWULEXWDEOH WR WKH *URXS¬V RSHUDWLRQV LQ $XVWUDOLD $V VXFK WKH WRWDO XQXVHG WD[ ORVVHV DYDLODEOH WR WKH *URXS, HTXDO $22,596,182 7KH DPRXQWV UHFHLYDEOH RU SD\DEOH XQGHU WKH 7D[ )XQGLQJ $JUHHPHQW DUH GXH XSRQ UHFHLSW RI WKH IXQGLQJ DGYLFH IURP WKH KHDG HQWLW\, ZKLFK LV LVVXHG DV VRRQ DV SUDFWLFDEOH DIWHU WKH HQG RI HDFK ²QDQFLDO \HDU 7D[ FRQVROLGDWLRQ OHJLVODWLRQ Genetic Technologies Limited DQG LWV ZKROO\ RZQHG $XVWUDOLDQ VXEVLGLDULHV LPSOHPHQWHG WKH WD[ consolidation legislation as from 1 -XO\ 2003 7KH DFFRXQWLQJ SROLF\ in relation to this legislation is set RXW LQ 1RWH 2(M) 49 $V DW 30 -XQH 2018, WKHUH DUH QR XQUHFRJQLVHG WHPSRUDU\ GLIIHUHQFHV DVVRFLDWHG ZLWK WKH *URXS¬V LQYHVWPHQWV LQ VXEVLGLDULHV, DV WKH *URXS KDV QR OLDELOLW\ IRU DGGLWLRQDO WD[DWLRQ VKRXOG XQUHPLWWHG HDUQLQJV EH UHPLWWHG (2017: $QLO) The entities in the tax consolidated JURXS KDYH HQWHUHG LQWR D 7D[ 6KDULQJ $JUHHPHQW ZKLFK, LQ WKH RSLQLRQ RI WKH 'LUHFWRUV, OLPLWV WKH MRLQW DQG VHYHUDO OLDELOLWLHV RI WKH ZKROO\-RZQHG HQWLWLHV LQ WKH FDVH RI D GHIDXOW E\ WKH KHDG HQWLW\, *HQHWLF Technologies Limited. $V DW EDODQFH GDWH, WKHUH DUH XQUHFRJQLVHG WD[ ORVVHV ZLWK D EHQH²W RI DSSUR[LPDWHO\ $22,596,182 (2017: $22,194,323) WKDW KDYH QRW Consolidated 2018 2017 $ $ 9. LOSS PER SHARE 7KH IROORZLQJ UH³HFWV WKH LQFRPH DQG VKDUH GDWD XVHG LQ WKH FDOFXODWLRQV RI EDVLF DQG GLOXWHG ORVV SHU VKDUH: 1RWH: 1RQH RI WKH 55,702,778 (2077: 75,702,778) RSWLRQV RYHU WKH &RPSDQ\¬V RUGLQDU\ VKDUHV WKDW ZHUH RXWVWDQGLQJ DV DW WKH reporting date are considered to be dilutive for the purposes of calculating diluted earnings per share. ANNU AL REPOR T 2018 /RVV IRU WKH \HDU DWWULEXWDEOH WR WKH RZQHUV RI *HQHWLF 7HFKQRORJLHV /LPLWHG (5,463,872) (8,403,826) :HLJKWHG DYHUDJH QXPEHU RI RUGLQDU\ VKDUHV XVHG LQ FDOFXODWLQJ ORVV SHU VKDUH 2,435,282,724 2,121,638,888

 

NOTES TO THE FINANCIAL S TATEMENT S Consolidated 2018 2017 $ $ 10. CASH AND CASH EQUIVALENTS 50 11. TRADE AND OTHER RECEIVABLES (CURRENT) Note: Trade and other receivables for the Group include amounts due in US dollars of USD 7,114 (2017: USD 153,829). Refer Note 28 for details of aging, interest rate and credit risks applicable to trade and other receivables for which, due to their short-term nature, their carrying value approximates their fair value. 7UDGH UHFHLYDEOHV 10,503 200,837 /HVV: SURYLVLRQ IRU GRXEWIXO GHEWV - 1HW WUDGH UHFHLYDEOHV 10,503 200,837 2WKHU UHFHLYDEOHV 290,880 225,435 7RWDO QHW FXUUHQW WUDGH DQG RWKHU UHFHLYDEOHV 301,383 426,272 Reconciliation of cash and cash equivalents Cash at bank and on hand 5,487,035 10,988,255 7RWDO FDVK DQG FDVK HTXLYDOHQWV 5,487,035 10,988,255 Reconciliation of loss for the year 5HFRQFLOLDWLRQ RI ORVV IRU WKH \HDU DIWHU LQFRPH WD[ WR QHW FDVK ³RZV XVHG LQ RSHUDWLQJ DFWLYLWLHV LV DV IROORZV: /RVV IRU WKH \HDU DIWHU LQFRPH WD[ (5,463,872) (8,403,826) $GMXVW IRU QRQ FDVK LWHPV Amortisation and depreciation expenses 303,749 371,611 ,PSDLUPHQW RI ,QWDQJLEOH DVVHWV 544,694 6KDUH-EDVHG SD\PHQWV H[SHQVH 129,635 120,287 1HW (SUR²W) / ORVV RQ GLVSRVDO RI SODQW DQG HTXLSPHQW (52,188) 1HW (JDLQV) / ORVVHV RQ OLTXLGDWLRQ RI VXEVLGLDU\ (527,049) - 1HW IRUHLJQ H[FKDQJH (JDLQV) / ORVVHV (128,360) 175,038 $GMXVW IRU FKDQJHV LQ DVVHWV DQG OLDELOLWLHV (,QFUHDVH) / GHFUHDVH LQ WUDGH DQG RWKHU UHFHLYDEOHV 124,889 204,501 (,QFUHDVH) / GHFUHDVH LQ SUHSD\PHQWV DQG RWKHU DVVHWV 14,843 103,488 ,QFUHDVH / (GHFUHDVH) LQ WUDGH DQG RWKHU SD\DEOHV 47,027 60,120 ,QFUHDVH / (GHFUHDVH) LQ SURYLVLRQV (122,177) 62,636 1HW FDVK ³RZV IURP / (XVHG LQ) RSHUDWLQJ DFWLYLWLHV (5,621,315) (6,813,639) Financing facilities available $V DW 30 -XQH 2018, WKH IROORZLQJ ²QDQFLQJ IDFLOLWLHV KDG EHHQ QHJRWLDWHG DQG ZHUH DYDLODEOH: Total facilities Credit cards 183,770 306,128 Facilities used as at reporting date Credit cards (12,031) (12,428) Facilities unused as at reporting date Credit cards 171,739 293,700

 

Consolidated 2018 2017 $ $ 12. PREPAYMENTS AND OTHER ASSETS (CURRENT) 13. PROPERTY, PLANT AND EQUIPMENT 51 ANNU AL REPOR T 2018 /DERUDWRU\ HTXLSPHQW, DW FRVW 1,451,389 1,451,389 /HVV: DFFXPXODWHG GHSUHFLDWLRQ (1,355,397) (1,209,553) 1HW ODERUDWRU\ HTXLSPHQW 95,992 241,836 &RPSXWHU HTXLSPHQW, DW FRVW 609,550 607,165 /HVV: DFFXPXODWHG GHSUHFLDWLRQ (563,208) (523,278) 1HW FRPSXWHU HTXLSPHQW 46,342 83,887 2I²FH HTXLSPHQW, DW FRVW 167,564 167,564 /HVV: DFFXPXODWHG GHSUHFLDWLRQ (166,807) (165,805) 1HW RI²FH HTXLSPHQW 757 1,759 (TXLSPHQW XQGHU KLUH SXUFKDVH, DW FRVW 594,626 594,626 /HVV: DFFXPXODWHG GHSUHFLDWLRQ (594,626) (594,626) 1HW HTXLSPHQW XQGHU KLUH SXUFKDVH - /HDVHKROG LPSURYHPHQWV, DW FRVW 462,797 462,797 /HVV: DFFXPXODWHG GHSUHFLDWLRQ (430,604) (313,631) 1HW OHDVHKROG LPSURYHPHQWV 32,193 149,166 7RWDO QHW SURSHUW\, SODQW DQG HTXLSPHQW 175,284 476,648 Reconciliation of property, plant and equipment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erformance bond and deposits 3,505 3,377 7RWDO FXUUHQW SUHSD\PHQWV DQG RWKHU DVVHWV 202,279 217,122

 

NOTES TO THE FINANCIAL S TATEMENT S 13. PROPERTY, PLANT AND EQUIPMENT &217,18(' 5HFRQFLOLDWLRQ RI PRYHPHQWV LQ SURSHUW\, SODQW DQG HTXLSPHQW E\ DVVHW FDWHJRU\ Opening net carrying amount Additions during year Disposals during year Depreciation expense Closing net carrying amount Asset category $ $ $ $ $ /DERUDWRU\ HTXLSPHQW 241,836 - - (145,844) 95,992 &RPSXWHU HTXLSPHQW 83,887 2,385 - (39,930) 46,342 2I²FH HTXLSPHQW 1,759 - - (1,002) 757 /HDVHKROG LPSURYHPHQWV 149,166 - - (116,973) 32,193 Totals 476,648 2,385 - (303,749) 175,284 Consolidated 2018 2017 $ $ 14. INTANGIBLE ASSETS 52 Patents 3DWHQWV, DW FRVW 36,662,592 /HVV: DFFXPXODWHG DPRUWLVDWLRQ (32,950,533) /HVV: LPSDLUPHQW ORVVHV (3,712,059) Total net patents - Other intangible assets $VVHWV DVVRFLDWHG ZLWK %5(9$*HQŒ EUHDVW FDQFHU ULVN WHVW, DW FRVW 1,033,273 /HVV: DFFXPXODWHG DPRUWLVDWLRQ (568,300) /HVV: LPSDLUPHQW ORVVHV (464,973) Total net other intangible assets - Total net intangible assets - Reconciliation of patents 2SHQLQJ QHW FDUU\LQJ DPRXQW 91,840 /HVV: DPRUWLVDWLRQ H[SHQVH FKDUJHG (UHIHU EHORZ) (12,119) /HVV: LPSDLUPHQW H[SHQVH (79,721) Total net patents - Reconciliation of other intangible assets 2SHQLQJ QHW FDUU\LQJ DPRXQW 516,637 /HVV: DPRUWLVDWLRQ H[SHQVH FKDUJHG (UHIHU EHORZ) (51,664) /HVV: LPSDLUPHQW H[SHQVH (464,973) Total net other intangible assets -

 

14. INTANGIBLE ASSETS &217,18(' ] FDOFXODWLQJ WKH YDOXH LQ XVH RI HDFK ,QWDQJLEOH DVVHW XVLQJ D GLVFRXQWHG FDVK ³RZ PRGHO 7KHVH PRGHOV XVHG FDVK ³RZV (UHYHQXHV, H[SHQVHV DQG FDSLWDO H[SHQGLWXUH) IRU HDFK asset based on their remaining XVHIXO OLYHV RI DSSUR[LPDWHO\ 4 \HDUV 7KH FDVK ³RZV ZHUH WKHQ GLVFRXQWHG WR QHW SUHVHQW YDOXHV DW DQ DYHUDJH RI WKH PRVW UHFHQW UDWHV XWLOLVHG E\ RWKHU &RPSDQLHV LQ WKH LQGXVWU\ LQ ZKLFK WKH *URXS RSHUDWHV DQG KDYH EHHQ DVVHVVHG E\ management to align with the ORQJ WHUP JURZWK SUR²OH RI WKH &RPSDQ\ $ SUH-WD[ GLVFRXQW UDWH RI 14 5%, DQG D JURZWK UDWH HVWLPDWH RI 2 0% ZDV XVHG WKURXJKRXW WKH YDOXH LQ XVH PRGHO, DQG FRPSDULQJ WKH UHVXOWLQJ YDOXH LQ XVH RI HDFK ,QWDQJLEOH DVVHW WR WKHLU UHVSHFWLYH ERRN YDOXHV LQ XVH FDOFXODWLRQV E\ YDU\LQJ WKH DVVXPSWLRQV XVHG WR DVVHVV WKH LPSDFW RQ WKH YDOXDWLRQV ,PSDLUPHQW 6ORZ JURZWK UDWHV LQ WKH PDUNHW adoption of the BREVAGenplus breast cancer risk assessment WHVW FRQWULEXWLQJ WR QHW ORVVHV represented an impairment WULJJHULQJ HYHQW LQ WKH SULRU \HDU (2017) 7KH *URXS SHUIRUPHG DQ LPSDLUPHQW DVVHVVPHQW, ZKLFK UHVXOWHG LQ D QRQ-FDVK LPSDLUPHQW RI WKH 3DWHQWV DQG RWKHU ,QWDQJLEOH assets associated with the %5(9$*HQ WHVW RI $544,694 EHLQJ UHFRUGHG DW 31 'HFHPEHU 2016 7KHUH KDYH EHHQ QR LQGLFDWLRQV RI D FKDQJH LQ WKH HVWLPDWHV XVHG WR GHWHUPLQH WKH DVVHWV UHFRYHUDEOH DPRXQW VLQFH WKH ODVW LPSDLUPHQW ORVV ZDV UHFRJQL]HG DQG DV VXFK WKHUH LV QR UHYHUVDO LQ WKH FXUUHQW \HDU HQGHG 30 -XQH 2018 2Q FRQVLGHUDWLRQ RI DOO RI WKHVH NH\ DVVXPSWLRQV WKH &RPSDQ\, in line with its impairment testing SROLF\ FRQFOXGHG WKDW WKH LQWDQJLEOH DVVHW VKRXOG EH IXOO\ LPSDLUHG, DQG that a non-cash impairment expense RI $544,694 EH UHFRJQLVHG DW 30 -XQH 2017 5HPDLQLQJ XVHIXO OLYHV The assets associated with the BREVAGen™ breast cancer risk test KDG D UHPDLQLQJ XVHIXO OLIH RI 4 \HDUV DV DW 30 -XQH 2017 'LVFORVXUH RI H[SHQVHV The total amortisation expense FKDUJHG GXULQJ WKH \HDU HQGHG 30 -XQH 2017 (2018: QLO) LQ UHVSHFW RI LQWDQJLEOH DVVHWV RI $63,783 is disclosed in the consolidated VWDWHPHQW RI FRPSUHKHQVLYH LQFRPH XQGHU WKH KHDGLQJ RI ODERUDWRU\ DQG UHVHDUFK DQG GHYHORSPHQW FRVWV 53 ] ,Q RUGHU WR VXSSRUW WKLV FRQFOXVLRQ, WKH &RPSDQ\ XQGHUWRRN DQ LPSDLUPHQW DVVHVVPHQW DV IROORZV: 7KH &RPSDQ\ DOVR SHUIRUPHG VHQVLWLYLW\ DQDO\VLV RYHU WKH YDOXH Consolidated 2018 2017 $ $ 15. TRADE AND OTHER PAYABLES (CURRENT) Note: Trade payables for the Group include amounts due in US dollars of USD 116,063 (2017 USD 137,154) and Swiss francs of CHF 0 (2017: CHF 380). Refer Note 28 for details of management of interest rate, foreign exchange and liquidity risks applicable to trade and other payables for which, due to their short-term nature, their carrying value approximates their fair value. ANNU AL REPOR T 2018 7UDGH SD\DEOHV 535,923 398,291 2WKHU SD\DEOHV 222,503 195,584 $FFUXHG H[SHQVHV 186,704 304,228 7RWDO FXUUHQW WUDGH DQG RWKHU SD\DEOHV 945,130 898,103

 

 

NOTES TO THE FINANCIAL S TATEMENT S Consolidated 2018 2017 $ $ 16. PROVISIONS (CURRENT AND NON-CURRENT) 54 * Make good provision. *HQHWLF 7HFKQRORJLHV /LPLWHG LV UHTXLUHG WR UHVWRUH WKH OHDVHG SUHPLVHV VLWXDWHG LQ )LW]UR\, 0HOERXUQH WR WKHLU RULJLQDO FRQGLWLRQ DW WKH HQG RI WKH OHDVH WHUPV. $ SURYLVLRQ KDV EHHQ UHFRJQLVHG IRU WKH SUHVHQW YDOXH RI WKH HVWLPDWHG H[SHQGLWXUH UHTXLUHG WR UHPRYH DQ\ OHDVHKROG LPSURYHPHQWV. 7KHVH FRVWV KDYH EHHQ FDSLWDOLVHG DV SDUW RI WKH FRVW RI OHDVHKROG LPSURYHPHQWV DQG DUH DPRUWLVHG RYHU WKH VKRUWHU RI WKH WHUP RI WKH OHDVH RU WKH XVHIXO OLIH RI WKH DVVHWV. 6HH 1RWH 2 (X) IRU WKH *URXS¬V RWKHU DFFRXQWLQJ SROLFLHV UHOHYDQW WR SURYLVLRQV. Note: The total provisions for annual leave and long service leave include a total amount of $325,421 (2017: $428,891) in respect of obligations which, based on historical evidence, the Company estimates will be settled more than 12 months from balance date. Reconciliation of annual leave provision %DODQFH DW WKH EHJLQQLQJ RI WKH ²QDQFLDO \HDU 239,821 223,100 $GG: REOLJDWLRQ DFFUXHG GXULQJ WKH \HDU 155,967 183,613 /HVV: XWLOLVHG GXULQJ WKH \HDU (250,289) (166,892) %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU 145,499 239,821 Reconciliation of long service leave provision %DODQFH DW WKH EHJLQQLQJ RI WKH ²QDQFLDO \HDU 299,739 253,824 (/HVV) I $GG: REOLJDWLRQ DFFUXHG GXULQJ WKH \HDU (27,806) 58,699 /HVV: XWLOLVHG GXULQJ WKH \HDU (12,784) %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU 271,933 299,739 Current provisions $QQXDO OHDYH 145,449 239,821 /RQJ VHUYLFH OHDYH 268,544 243,411 Make good* 91,590 83,958 7RWDO FXUUHQW SURYLVLRQV 505,583 567,190 Non-current provisions /RQJ VHUYLFH OHDYH 3,390 56,328 Make good* 7,632 7RWDO QRQ-FXUUHQW SURYLVLRQV 3,390 63,960 7RWDO SURYLVLRQV 508,973 631,150

 

Consolidated 2018 2017 $ $ 17. CONTRIBUTED EQUITY Movements in shares on issue Shares $ Year ended 30 June 2017 %DODQFH DW WKH EHJLQQLQJ RI WKH ²QDQFLDO \HDU 1,715,282,724 115,272,576 $GG: VKDUHV LVVXHG DV SDUW RI SULYDWH SODFHPHQWV 720,000,000 8,049,369 $GG: IDFLOLW\ IHH UHEDWH RQ SUHYLRXVO\ LVVXHG VKDUHV* - 295,110 /HVV: WUDQVDFWLRQ FRVWV DULVLQJ RQ VKDUH LVVXH - (1,234,430) %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU 2,435,282,724 122,382,625 55 * Rebate of a facility fee originally provided to Kentgrove Capital on commencement date of a Standby Equity Placement Facility Agreement entered into in January 2015 that was paid on expiry of the facility agreement on 21 January 2017 in accordance with the agreement, representing a reduction in total equity transaction costs associated with the commencement of the facility. 7HUPV DQG FRQGLWLRQV RI FRQWULEXWHG HTXLW\ 2UGLQDU\ VKDUHV KDYH WKH ULJKW WR UHFHLYH GLYLGHQGV DV GHFODUHG DQG, LQ WKH HYHQW RI ZLQGLQJ XS WKH &RPSDQ\, WR SDUWLFLSDWH LQ WKH SURFHHGV IURP WKH VDOH RI DOO VXUSOXV DVVHWV LQ SURSRUWLRQ WR WKH QXPEHU RI DQG DPRXQWV SDLG XS RQ VKDUHV KHOG. 2UGLQDU\ VKDUHV, ZKLFK KDYH QR SDU YDOXH, HQWLWOH WKHLU KROGHU WR RQH YRWH, HLWKHU LQ SHUVRQ RU E\ SUR[\, DW D PHHWLQJ RI WKH &RPSDQ\. &DSLWDO PDQDJHPHQW :KHQ PDQDJLQJ FDSLWDO, 0DQDJHPHQW¬V REMHFWLYH LV WR HQVXUH WKDW WKH *URXS FRQWLQXHV DV D JRLQJ FRQFHUQ DV ZHOO DV WR SURYLGH UHWXUQV IRU VKDUHKROGHUV DQG EHQH²WV IRU RWKHU VWDNHKROGHUV. 0DQDJHPHQW DOVR DLPV WR PDLQWDLQ D FDSLWDO VWUXFWXUH WR UHGXFH WKH HQWLW\¬V FRVW RI FDSLWDO. ANNU AL REPOR T 2018 Year ended 30 June 2018 %DODQFH DW WKH EHJLQQLQJ RI WKH ²QDQFLDO \HDU 2,435,282,724 122,382,625 /HVV: WUDQVDFWLRQ FRVWV DULVLQJ RQ VKDUH LVVXH (9,963) %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU 2,435,282,724 122,372,662 Issued and paid-up capital )XOO\ SDLG RUGLQDU\ VKDUHV 122,372,662 122,382,625 7RWDO FRQWULEXWHG HTXLW\ 122,372,662 122,382,625

 

NOTES TO THE FINANCIAL S TATEMENT S Consolidated 2018 2017 $ $ 18. RESERVES 56 1DWXUH DQG SXUSRVH RI UHVHUYHV Foreign currency translation reserve 7KLV UHVHUYH LV XVHG WR UHFRUG H[FKDQJH GLIIHUHQFHV DULVLQJ IURP WKH WUDQVODWLRQ RI WKH ²QDQFLDO VWDWHPHQWV RI IRUHLJQ VXEVLGLDULHV. Share-based payments reserve 7KLV UHVHUYH LV XVHG WR UHFRUG WKH YDOXH RI VKDUH-EDVHG SD\PHQWV SURYLGHG WR HPSOR\HHV DQG RWKHUV SURYLGLQJ VLPLODU VHUYLFHV DV SDUW RI WKHLU UHPXQHUDWLRQ. 19. ACCUMULATED LOSSES %DODQFH DW WKH EHJLQQLQJ RI WKH ²QDQFLDO \HDU (117,848,074) (109,444,248) $GG: QHW ORVV DWWULEXWDEOH WR RZQHUV RI *HQHWLF 7HFKQRORJLHV /LPLWHG (5,463,872) (8,403,826) %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU (123,311,946) (117,848,074) )RUHLJQ FXUUHQF\ WUDQVODWLRQ 765,930 1,288,896 6KDUH-EDVHG SD\PHQWV 4,885,232 4,755,597 7RWDO UHVHUYHV 5,651,162 6,044,493 Reconciliation of foreign currency translation reserve %DODQFH DW WKH EHJLQQLQJ RI WKH ²QDQFLDO \HDU 1,288,896 1,419,551 $GG: QHW FXUUHQF\ WUDQVODWLRQ JDLQ I (ORVV) (522,966) (130,655) %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU 765,930 1,288,896 Reconciliation of share-based payments reserve %DODQFH DW WKH EHJLQQLQJ RI WKH ²QDQFLDO \HDU 4,755,597 4,635,310 $GG: VKDUH-EDVHG SD\PHQWV H[SHQVH 129,635 120,287 %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU 4,885,232 4,755,597

 

20. OPTIONS $V DW 30 -XQH 2018, WKH IROORZLQJ RSWLRQV RYHU RUGLQDU\ VKDUHV LQ WKH &RPSDQ\ ZHUH RXWVWDQGLQJ. Weighted ave. exercise price Weighted ave. exercise price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eighted ave. exercise price Weighted ave. exercise price 2018 2017 7KHUH ZHUH QR RSWLRQV H[HUFLVHG XQGHU WKH (PSOR\HH 2SWLRQ 3ODQ GXULQJ WKH \HDU HQGHG 30 -XQH 2018 (2017: 1LO). 7KH QXPEHUV RI RSWLRQV RXWVWDQGLQJ DV DW 30 -XQH 2018 E\ $6; FRGH, LQFOXGLQJ WKH UHVSHFWLYH GDWHV RI H[SLU\ DQG H[HUFLVH SULFHV, DUH WDEOHG EHORZ (UHIHU 1RWH 22 IRU IXUWKHU LQIRUPDWLRQ). 7KH RSWLRQV WDEOHG EHORZ DUH QRW OLVWHG RQ $6;. Weighted ave. exercise price Weighted ave. exercise price Option description 2018 2017 7KH ZHLJKWHG DYHUDJH UHPDLQLQJ FRQWUDFWXDO OLIH RI RSWLRQV RXWVWDQGLQJ DV DW 30 -XQH 2018 ZDV 1.94 \HDUV (2017: 3.28 \HDUV). ANNU AL REPOR T 2018 Unlisted employee options *7*$' (H[SLULQJ 14 6HSWHPEHU 2020) 250,000$0.058 *7*$' (H[SLULQJ 24 1RYHPEHU 2020) 19,236,111$0.020 24,236,111$0.020 *7*$' (H[SLULQJ 31 0DUFK 2021) 5,000,000 $0.020 7,500,000$0.020 *7*$' (H[SLULQJ 16 )HEUXDU\ 2022) 10,500,000 $0.010 22,750,000$0.010 34,736,111$0.017 54,736,111$0.016 Unlisted options attached to convertible notes *7*$& (H[SLULQJ 2 'HFHPEHU 2018) 20,366,667 $0.015 20,366,667 $0.015 %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU 55,102,778$0.016 75,102,778$0.016 ([HUFLVDEOH DW WKH HQG RI WKH ²QDQFLDO \HDU 48,102,778$0.017 36,234,722 $0.017 Unlisted employee options %DODQFH DW WKH EHJLQQLQJ RI WKH ²QDQFLDO \HDU 54,736,111$0.016 33,486,111$0.022 $GG: RSWLRQV JUDQWHG GXULQJ WKH \HDU 22,750,000$0.010 /HVV: RSWLRQV H[HUFLVHG GXULQJ WKH \HDU - - /HVV: RSWLRQV IRUIHLWHG GXULQJ WKH \HDU (20,000,000) $0.014 (1,500,000)$0.049 %DODQFH DW WKH HQG RI WKH ²QDQFLDO \HDU 34,736,111$0.017 54,736,111$0.016 8QOLVWHG HPSOR\HH RSWLRQV (UHIHU EHORZ) 34,736,111$0.017 54,736,111$0.016 8QOLVWHG RSWLRQV DWWDFKHG WR FRQYHUWLEOH notes 20,366,667 $0.015 20,366,667 $0.015 55,102,778$0.016 75,102,778$0.016

 

NOTES TO THE FINANCIAL S TATEMENT S 21. SEGMENT INFORMATION ,GHQWL²FDWLRQ RI UHSRUWDEOH VHJPHQWV 7KH *URXS KDV LGHQWL²HG D VROH RSHUDWLQJ VHJPHQW DV UHSRUWHG WKDW LV FRQVLVWHQW ZLWK WKH LQWHUQDO UHSRUWLQJ SURYLGHG WR WKH FKLHI RSHUDWLQJ GHFLVLRQ PDNHU DQG LV DOLJQHG WR WKH RQH PDMRU UHYHQXH VWUHDP. 7KH *URXSV RSHUDWLQJ VHJPHQW LV VXPPDULVHG DV IROORZV: %XVLQHVV VHJPHQWV Revenues and income Sales Other Totals Pro²t/(Loss) Segment $ $ $ $ 2SHUDWLRQV 2018 2017 189,254 518,506 441,476 344,112 630,730 862,618 (5,463,872) (8,403,826) Amortisation/ depreciation Purchases of equipment Assets Liabilities Segment $ $ $ $ 2SHUDWLRQV 2018 2017 6,165,981 12,108,297 (1,454,103) (1,529,253) (303,749) (371,611) 2,385 234,799 58 *HRJUDSKLF LQIRUPDWLRQ ] $XVWUDOLD § LV WKH KRPH FRXQWU\ RI WKH SDUHQW HQWLW\ DQG WKH ORFDWLRQ RI WKH &RPSDQ\¬V JHQHWLF WHVWLQJ DQG licensing operations. 86$ § LV WKH KRPH RI 3KHQRJHQ 6FLHQFHV ,QF. DQG *HQH7\SH &RUSRUDWLRQ. 6ZLW]HUODQG § LV WKH KRPH RI *HQH7\SH $* (/LTXLGDWHG 'HFHPEHU 2017). ] ] *HRJUDSKLF LQIRUPDWLRQ Revenues and income Sales Other Totals Pro²t/(Loss) $ $ $ $ $XVWUDOLD 2018 2017 441,476 344,112 441,476 362,327 (3,504,098) (7,000,994) 18,215 86$ 2018 2017 189,254 500,291 189,254 500,291 (1,959,774) (1,371,001) - 2WKHU 2018 2017 - - - (31,831) Totals 2018 2017 189,254 518,506 441,476 344,112 630,730 862,618 (5,463,872) (8,403,826) Amortisation/ depreciation Purchases of equipment Assets Liabilities $ $ $ $ $XVWUDOLD 2018 2017 6,004,286 11,473,094 (1,353,718) (1,291,529) (295,150) (362,677) 2,385 223,096 86$ 2018 2017 161,695 632,419 (100,385) (233,301) (8,599) (8,934) 11,703 2WKHU 2018 2017 2,784 (4,423) - - Totals 2018 2017 6,165,981 12,108,297 (1,454,103) (1,529,253) (303,749) (371,611) 2,385 234,799

 

21. SEGMENT INFORMATION &217,18(' $GGLWLRQDO VHJPHQW GLVFORVXUHV ] ] ] ] 2WKHU UHYHQXHV DQG LQFRPH LQFOXGHV LQWHUHVW UHFHLYHG RI $15,218 (2017: $38,765). ([SHQVHV LQFOXGHV HPSOR\HH EHQH²WV H[SHQVHV RI $2,657,232 (2017: $3,594,936). $VVHWV - LQFOXGHV FDVK RI $5,487,035 (2017: $10,988,255). /LDELOLWLHV LQFOXGHV WUDGH DQG RWKHU SD\DEOHV RI $945,130 (2017: $898,103) DQG SURYLVLRQV RI $508,973 (2017: $631,150). ,QFOXGHG LQ WKH DERYH ²JXUHV DUH WKH IROORZLQJ LQWHUVHJPHQW EDODQFHV DQG WUDQVDFWLRQV: Consolidated 2018 2017 $ $ 6HJPHQW SURGXFWV DQG ORFDWLRQV 7KH SULQFLSDO JHRJUDSKLF VHJPHQW LV $XVWUDOLD, ZLWK WKH &RPSDQ\¬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Consolidated 2018 2017 $ $ 23. COMMITMENTS AND CONTINGENCIES $V DW 30 -XQH 2018, WKH DERYH RSHUDWLQJ OHDVHV UHODWHG WR WKH IROORZLQJ SUHPLVHV WKDW DUH FXUUHQWO\ RFFXSLHG E\ WKH *URXS: Minimum payments ($) Date of expiry of lease Location Landlord Use 61 60-66 +DQRYHU 6WUHHW )LW]UR\, 9LFWRULD 3065 $XVWUDOLD &UXGH 3W\. /WG. 2I²FH I ODERUDWRU\ 31 $XJXVW 2018 35,676 9115 +DUULV &RUQHUV 3DUNZD\, 6XLWH 320 &KDUORWWH, 1RUWK &DUROLQD 28269 86$ New Boston +DUULV &RUQHUV LLC 2I²FH Month to month 5,949 Total 41,625 $SDUW IURP WKH DERYH, WKHUH ZHUH QR RWKHU FRPPLWPHQWV RU FRQWLQJHQFLHV DV DW 30 -XQH 2018. 2Q 3 -XO\ 2018 WKH OHDVH DJUHHPHQW IRU WKH )LW]UR\ SUHPLVHV LQ 0HOERXUQH ZDV H[WHQGHG IRU 3 \HDUV IURP 1 6HSWHPEHU 2018 WR 31 $XJXVW 2021. ,Q DGGLWLRQ, 3KHQRJHQ 6FLHQFHV ,QF. KDV YDFDWHG WKH +DUULV &RUQHUV 3DUNZD\ RI²FH LQ &KDUORWWH DQG HQWHUHG LQWR D 2 \HDU OHDVH DJUHHPHQW HIIHFWLYH 23 -XO\ 2018 IRU SUHPLVHV VLWXDWHG DW 1300 %D[WHU 6WUHHW, 6XLWH 157, &KDUORWWH, 1RUWK &DUROLQD. 24. AUDITORS’ REMUNERATION Consolidated 2018 2017 $ $ 7. $ XGLW IHHV FRQVLVW RI VHUYLFHV WKDW ZRXOG QRUPDOO\ EH SURYLGHG LQ FRQQHFWLRQ ZLWK VWDWXWRU\ DQG UHJXODWRU\ ²OLQJV RU engagements, including services that generally only the independent accountant can reasonably provide. ANNU AL REPOR T 2018 Audit and assurance services 3ULFHZDWHUKRXVH&RRSHUV LQ UHVSHFW RI: $XGLW 1 288,200 325,972 $XGLW UHODWHG 107,451 2WKHU DXGLW ²UPV LQ UHVSHFW RI: $XGLW RI WKH )LQDQFLDO 5HSRUWV RI VXEVLGLDULHV 4,070 7RWDO UHPXQHUDWLRQ LQ UHVSHFW RI DXGLW VHUYLFHV 288,200 437,493 Operating lease expenditure commitments 0LQLPXP RSHUDWLQJ OHDVH SD\PHQWV - QRW ODWHU WKDQ RQH \HDU 41,625 227,992 - ODWHU WKDQ RQH \HDU EXW QRW ODWHU WKDQ ²YH \HDUV 35,676 - ODWHU WKDQ ²YH \HDUV - 7RWDO PLQLPXP RSHUDWLQJ OHDVH SD\PHQWV 41,625 263,668

 

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been given the declarations by the Chief Executive Officer and Chief Financial Officer.

 

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AUDITOR’S INDEPENDENCE DECLARATION 72 Auditor’s Independence Declaration As lead auditor for the audit of Genetic Technologies Limited for the year ended 30 June 2018, 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 audit; and (b) no contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Genetic Technologies Limited and the entities it controlled during the period. Sam Lobley Melbourne Partner 30 August 2018 PricewaterhouseCoopers PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001 T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au /LDELOLW\ OLPLWHG E\ D VFKHPH DSSURYHG XQGHU 3URIHVVLRQDO 6WDQGDUGV /HJLVODWLRQ.

 

AUDITOR’S REPORT 73 ANNU AL REPOR T 2018 Independent auditor’s report To the members of Genetic Technologies Limited Report on the audit of the financial report Our opinion In our opinion: The accompanying financial report of Genetic Technologies Limited (the Company) and its controlled entities (together the Group) is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Group's financial position as at 30 June 2018 and of its financial performance for the year then ended (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. What we have audited The Group financial report comprises: xthe consolidated balance sheet as at 30 June 2018 xthe consolidated statement of comprehensive income / (loss) for the year ended 30 June 2018 xthe consolidated statement of changes in equity for the year ended 30 June 2018 xthe consolidated statement of cash flows for the year ended 30 June 2018 xthe notes to the financial statements for the year ended 30 June 2018 xthe directors’ declaration. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001 T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation.

 

 

A UDITOR’S REPOR T 74 xOur approach had regard for the quality of the Material uncertainty related to going concern We draw attention to Note 2(a) in the financial report, which indicates that the Group incurred a total comprehensive loss of $5,986,838 and had net cash outflows from operations of $5,621,315 during the year ended 30 June 2018. The Group’s ability to continue as a going concern is dependent on the successful execution of the planned equity raisings. These conditions, along with other matters set forth in Note 2(a), indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Our audit approach An audit is designed to provide reasonable assurance about whether the financial report is free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial report as a whole, taking into account the geographic and management structure of the Group, its accounting processes and controls and the industry in which it operates. xFor the purpose of our audit we used overallxOur audit focused on where the Group made materiality of $270,000, which representssubjective judgements; for example, significant approximately 5% of the Group’s total loss fromaccounting estimates involving assumptions and operations before income tax expense.inherently uncertain future events. xWe applied this threshold, together withxThe accounting processes are structured around a qualitative considerations, to determine the scopeGroup-wide finance function at the head office of our audit and the nature, timing and extent ofMelbourne, where our procedures were our audit procedures and to evaluate the effect ofpredominately performed. misstatements on the financial report as a whole. xWe chose loss from operations before income taxcontrol environment and deficiencies identified, expense, which is a commonly acceptedwhich include lack of segregation of duties. benchmark and utilised a 5% threshold based on our professional judgement, noting it is within the range of commonly accepted thresholds. Materiality Audit scope

 

75 and BCG as disclosed within Note 25 to the financial previously have had involvement with Blockchain xReading the formal agreement between the related party under Australian Accounting Standards proposed framework directors to obtain an understanding of the non-binding terms sheet with BCG was entered into to xReading minutes of meetings held amongst between the two companies. ANNU AL REPOR T 2018 Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. The key audit matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit procedure is made in that context. We communicated the key audit matters to the Audit Committee. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matter described below to be the key audit matters to be communicated in our report. Related Party Disclosures (Refer to note 25) A number of Directors of the Group presently orOur procedures over transactions between the Group Global Limited (BCG), which meets the definition of areport included, amongst others: Board 124 Related Party Disclosures.parties to obtain an understanding of the As announced by the Group on 15 February 2018, axHolding discussions with management and provide a framework for continuing discussionsproposed initiatives with BCG the board of directors where matters related to As announced by the Group on 2 August 2018, aBCG were discussed framework agreement with BCG was entered intoxAssessing if the associated disclosures made in formalizing the non-binding terms sheet and providingthe financial report complied with Australia a framework for the alliance between the Company andAccounting Standards Board 124 Related BCG, with this agreement only becoming binding onParty Disclosures. the Company obtaining the approval of non-associated shareholders. This framework includes a proposed issuance of 486,000,000 shares to BCG in 3 tranches subject to the achievement of certain milestones. Given the significance of this strategic alliance with a related party, we have determined this is a key audit matter. Other information The directors are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2018, but does not include the financial report and our auditor’s report thereon. Prior to the date of this auditor's report, the other information we obtained included the Directors' Report, Corporate Information, Corporate Key audit matterHow our audit addressed the key audit matter

 

A UDITOR’S REPOR T 76 Governance Statement and ASX Additional Information. We expect the remaining other information to be made available to us after the date of this auditor's report. Our opinion on the financial report does not cover the other information and we do not and will not express an opinion or any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the other information not yet received as identified above, if we conclude that there is a material misstatement therein, we are required to communicate the matter to the directors and use our professional judgement to determine the appropriate action to take. Responsibilities of the directors for the financial report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our auditor's report.

 

77 ANNU AL REPOR T 2018 Report on the remuneration report Our opinion on the remuneration report We have audited the remuneration report included in pages 22 to 29 of the directors’ report for the year ended 30 June 2018. In our opinion, the remuneration report of Genetic Technologies Limited for the year ended 30 June 2018 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. PricewaterhouseCoopers Sam Lobley Melbourne Partner 30 August 2018

 

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& 25325 $7(,1) 250 $7,21 DIRECTORS BANKER (AUSTRALIA) SHARE REGISTER ] 'U 3DXO $. .DVLDQ Executive Chairman and Interim CEO 'U /LQGVD\ :DNH²HOG Non-Executive 'U *HRUJH 0XFKQLFNL Executive 0U 3HWHU 5XELQVWHLQ Non-Executive 0U 6DP /HH Non-Executive 1DWLRQDO $XVWUDOLD %DQN /LPLWHG /HYHO 2, 151 5DWKGRZQH 6WUHHW &DUOWRQ 9,& 3053 $XVWUDOLD &RPSXWHUVKDUH ,QYHVWRU 6HUYLFHV 3W\. /WG. <DUUD )DOOV, 452 -RKQVWRQ 6WUHHW $EERWVIRUG 9,& 3067 $XVWUDOLD ] BANKER (USA) %DQN RI $PHULFD, 1.$. 155 7RZQ &HQWUH 'ULYH 0RRUHVYLOOH 1& 28117 86$ ] 7HOHSKRQH:+61 3 9415 5000 )DFVLPLOH: +61 3 9473 2500 ] :HEVLWH: ZZZ.FRPSXWHUVKDUH.FRP 80 ] AUDITOR 3ULFHZDWHUKRXVH&RRSHUV &KDUWHUHG $FFRXQWDQWV 2 5LYHUVLGH 4XD\ 6RXWKEDQN 9,& 3006 $XVWUDOLD COMPANY SECRETARY ]0U .HYLQ )LVFKHU REGISTERED OFFICE 60-66 +DQRYHU 6WUHHW )LW]UR\ 9,& 3065 $XVWUDOLD STOCK EXCHANGES $XVWUDOLDQ 6HFXULWLHV ([FKDQJH &RGH: *7* 7HOHSKRQH:+61 3 8412 7000 )DFVLPLOH: +61 3 8412 7040 /HYHO 4, 1RUWK 7RZHU, 5LDOWR 525 &ROOLQV 6WUHHW 0HOERXUQH 9,& 3000 $XVWUDOLD (PDLO: LQIR#JWJODEV.FRP POSTAL ADDRESS 3.2. %R[ 115 )LW]UR\ 9,& 3065 $XVWUDOLD 1$6'$4 &DSLWDO 0DUNHW 7LFNHU: *(1( 7KH 1DVGDT 6WRFN 0DUNHW 2QH /LEHUW\ 3OD]D, 165 %URDGZD\ 1HZ <RUN 1< 10006 86$ AUSTRALIAN BUSINESS NUMBER 17 009 212 328 COMPANY WEBSITE www.gtglabs.com

 

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*HQHWLF 7HFKQRORJLHV /LPLWHG 60-66 Hanover Street Fitzroy, Victoria 3065 Australia T: +61 3 8412 7000 F: +61 3 8412 7040 E: info@gtglabs.com P.O. Box 115 Fitzroy, Victoria 3065 Australia www.gtglabs.com

 

Exhibit 99.2

GENETIC TECHNOLOGIES LIMITED A.B.N. 17 009 212 328 Quarterly Activities Report and Appendix 4C of the ASX Listing Rules for the quarter ended 30 September 2018

 

Quarterly Activities Report for the quarter ended 30 September 2018 HIGHLIGHTS  Ongoing focus on accelerating product development through internal R&D efforts and collaborations with key organisations in Australia and the US. Enhanced breast cancer test which increases the applicability of our current BREVAGenplus® test to 95% of women is on schedule for launch in early 2019. First in class colon cancer risk assessment test on schedule for launch in early 2019. Invitation to establish market presence in Hainan, China. Heads of Agreement outlining a joint venture framework with Beijing Zishan Health Consultancy Limited to provide regulatory and marketing support in China. Consumer-facing website for US market scheduled to launch with the introduction of new tests for breast cancer and colon cancer Execution of an equity placement facility with Kentgrove Capital Pty Ltd.       Melbourne, Australia, 30 October 2018: Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE, “Company”, “GTG”), a diversified molecular diagnostics company embracing blockchain technologies across genomic testing platforms, is pleased to provide its Quarterly Activities Report for the period ending 30 September 2018, together with the attached Appendix 4C. Product Development Pipeline In line with our strategic objective of accelerated product development, GTG has recruited and hired a respected molecular biologist with a PhD in Genomics and over 12 years of experience in genomic diagnostics research at Monash University. Development of an enhanced version of the BREVAGenplus test is nearing completion. The test will broaden the applicability of BREVAGenplus and enable its use by women with an extended family history of disease. By increasing the range of risk factors analysed, the test will provide clinically actionable insight for approximately 95% of women. Our first-to-market genetic risk assessment test for colon cancer is on track to be introduced to the market early in 2019. This will be the first of a suite of new products we plan to deliver in the next 12 months, including genetic risk assessment tests for:     Cardiovascular Disease Type 2 Diabetes Prostate Cancer Melanoma The new tests represent the culmination of research initiatives launched earlier in the year, including our ongoing collaboration with The University of Melbourne. During the quarter, the Company has also progressed discussions with major cancer organisations in the US, Australia and Southeast Asia to develop pilot-scale programs for breast and colon cancer genetic risk assessment screening. Demonstration projects with these organisations are targeted for regional rollout during the first quarter of 2019. These organisations hold a long-term view to improve patient outcomes on a population scale through the targeted application of healthcare resources. The programs we are developing with these organisations demonstrate the growing acceptance of SNP-based risk assessment testing in both the medical and the scientific communities and highlight the clinical validity of GTG’s tests. Unlike other genetic tests on the market, GTG’s screening is clinically validated. As such, physicians in the US and other regions are authorised to recommend procedures and medications to address the needs of high-risk patients. This may include additional screening for individuals with an elevated risk of disease. Physicians can also rely on test results to clinically substantiate prescription of cancer preventative medication protocols. Clinical validity is one of the key barriers to commercialisation of genetic risk assessment tests. 1

 

Quarterly Activities Report for the quarter ended 30 September 2018 The new risk assessment tests represent a significant market opportunity. There are 8.2 million deaths from cancer per annum, 17.7 million deaths due to cardiovascular disease and 1.6 million deaths due to diabetes (World Health Organisation). Colorectal cancer represents 12.3% of all new cancers diagnosed in Australia in 2018. It is a leading cause of cancer death and disability in Australia and the USA. (https://bowel-cancer.canceraustralia.gov.au/statistics) China Joint Venture In August 2018, the Company signed a Heads of Agreement with Beijing Zishan Health Consultancy Limited which provides a framework according to which the two parties will explore opportunities to achieve market entry, through a Joint Venture (JV), for GTG’s genomic tests into the health sector in the People’s Republic of China. The Company was subsequently invited by representatives of the Hainan Government to establish a presence in the Hainan Medical Pilot Zone (part of the Hainan Free Trade Zone Initiative). The zone, which is central to China’s Healthy China 2030 Plan, is being established by the Chinese Government, as a high-end, medically focused area that seeks to bring together a world class community of global companies in terms of care, physicians, treatments, technology and cutting edge medical product development. Valued at more than $800 billion USD, the Chinese market is now the second biggest single healthcare market outside the United States. Over 4 million new cases of cancer are diagnosed in China every year. Breast cancer is increasing at a rate of over 3.5% each year. GTG’s market entry into China aligns with the government’s Healthy China 2030 initiative that seeks to provide cost-effective healthcare to more than 1.5 billion people. Disease prevention is critical to cost control as treatments for early stage disease carry a lower cost and result in better health outcomes. GTG’s genetic tests can be used to predict an individual’s likelihood of developing disease. Screening and other healthcare resources can be targeted to those with an elevated risk. For example, screening every woman for breast cancer may be too costly, but it may be cost-effective to screen those with a mid-to-high 5-year risk score. Zishan Health Consultancy is based in mainland China and will provide GTG with in-country sales and marketing expertise. Zishan will also assist with GTG’s application to the Chinese Food and Drug Administration (CFDA) and establishing the appropriate corporate structures for foreign entities entering the market via the Hainan Free Trade Zone Initiative. Our partnership with Zishan allows for the protection of GTG intellectual property and offers a path to the repatriate earnings. Consumer Initiated Testing in the US In line with our strategic vision, we are developing an online process whereby consumers can engage with GTG’s genetic testing while still maintaining their relationship with their primary care physician. The platform and associated media campaign will showcase the benefits of genetic risk assessment testing and provide a knowledge bank for physicians so that they can accurately assess the results and use GTG’s tests to develop personalised health plans for their patients. While the market has seen a proliferation of at-home genetic tests, GTG tests are scientifically validated and clinically actionable. We will reach out directly to individuals in our target demographic and support them and their physician through the process of:     Evaluating whether the test is right for them Collecting and submitting a cheek-swab sample Communicating the results of the test Assisting the physician and the patient with the development of a personalised risk reduction plan 2

 

Quarterly Activities Report for the quarter ended 30 September 2018 The launch of the website and media campaign will coincide with the introduction of the enhanced breast cancer test and the colon cancer test in early 2019. Equity Placement Facility On 8 August 2018, the Company entered into a A$20 million Equity Placement Facility with the Kentgrove Capital Growth Fund, an investment fund managed by Kentgrove Capital Pty Ltd, a Melbourne-based investment management firm, to strengthen the Company’s funding position. Under the Facility, Kentgrove Capital may provide the Company with up to A$20 million of equity capital in a series of individual placements of up to $1 million (or a higher amount by mutual agreement) over the next 20 months. Subsequent to the end of the September quarter, on 25 October 2018, the Company issued 100,000,000 shares under this facility, resulting in cash inflows from financing of $1.35M Financial Snapshot Operational cash spend for the quarter was $2.3M, being $1M more than the previous June quarter. This increase is substantially driven by one-off annual regulatory and compliance payments. The Company’s modest cash receipts remained within the expected range during this time of strategic transition, as investment in R&D and development of distribution channels represent the major budgetary priorities for the Company. As at 30 September 2018, the Company had $3.5M in cash. Annual Report The Company’s Annual Report for 2018 was published on 30 October 2018, and is available on the Company’s website at www.gtglabs.com. Signed on behalf of Genetic Technologies Limited Date: 30 October 2018 Dr Paul Kasian Chairman & Interim CEO 3

 

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B +Rule 4.7B Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16 Name of entity ABN Quarter ended (“current quarter”) (3 Months) + See chapter 19 for defined terms 1 September 2016 Page 1 2.Cash flows from investing activities 2.1Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (3) - - (3) - - Consolidated statement of cash flows Current quarter $A’000 Year to date $A’000 1.Cash flows from operating activities 1.1Receipts from customers 1.2Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f)administration and corporate costs 1.3Dividends received (see note 3) 1.4Interest received 1.5Interest and other costs of finance paid 1.6Income taxes paid 1.7Government grants and tax incentives 1.8Other (provide details if material) 1.9Net cash from / (used in) operating activities 167 (96) (16) (324) - (811) (1,027) - 8 - - - - 167 (96) (16) (324) - (811) (1,027) - 8 - - - - (2,099) (2,099) 30 SEPTEMBER 2018 17 009 212 328 GENETIC TECHNOLOGIES LIMITED

 

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B (3 Months) + See chapter 19 for defined terms 1 September 2016 Page 2 4.Net increase / (decrease) in cash and cash equivalents for the period 4.1Cash and cash equivalents at beginning of quarter/year to date 4.2Net cash from / (used in) operating activities (item 1.9 above) 4.3Net cash from / (used in) investing activities (item 2.6 above) 4.4Net cash from / (used in) financing activities (item 3.10 above) 5,487 (2,099) (3) (3) 5,487 (2,099) (3) (3) 3.Cash flows from financing activities 3.1Proceeds from issues of shares 3.2Proceeds from issue of convertible notes 3.3Proceeds from exercise of share options 3.4Transaction costs related to issues of shares, convertible notes or options 3.5Proceeds from borrowings 3.6Repayment of borrowings 3.7Transaction costs related to loans and borrowings 3.8Dividends paid 3.9Other (provide details if material) 3.10Net cash from / (used in) financing activities - - - (3) - - - - - - - - (3) - - - - - (3) (3) Consolidated statement of cash flows Current quarter $A’000 Year to date $A’000 (d) intellectual property (e) other non-current assets 2.2Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3Cash flows from loans to other entities 2.4Dividends received (see note 3) 2.5Other (provide details if material) 2.6Net cash from / (used in) investing activities - - - - - - - - - - - - - - - - - - - - (3) (3)

 

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B (3 Months) 6. Payments to directors of the entity and their associates 6.1 6.2 Aggregate amount of payments to these parties included in item 1.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 7. Payments to related entities of the entity and their associates Aggregate amount of payments to these parties included in item 1.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 7.1 7.2 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 + See chapter 19 for defined terms 1 September 2016 Page 3 Current quarter $A'000 - - The amount included at Items 6.1 & 6.2 include $116,653 paid to Directors during the quarter in respect of fees and superannuation. Current quarter $A'000 117 - 5.Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A’000 Previous quarter $A’000 5.1Bank balances 5.2Call deposits 5.3Bank overdrafts 5.4Other (provide details) 5.5Cash and cash equivalents at end of quarter (should equal item 4.6 above) 3,451 - - - 5,487 - - - 3,451 5,487 Consolidated statement of cash flows Current quarter $A’000 Year to date $A’000 4.5Effect of movement in exchange rates on cash held 4.6Cash and cash equivalents at end of quarter 69 69 3,451 3,451

 

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B 8. Financing facilities available Add notes as necessary for an understanding of the position Loan facilities Credit standby arrangements Other (please specify) – Credit Card 8.1 8.2 8.3 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. + See chapter 19 for defined terms 1 September 2016 Page 4 10.Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above) Acquisitions Disposals 10.1Name of entity - - 10.2Place of incorporation or registration - - 10.3Consideration for acquisition or disposal - - 10.4Total net assets - - 10.5Nature of business - - 9.Estimated cash outflows for next quarter $A’000 9.1Research and development 9.2Product manufacturing and operating costs 9.3Advertising and marketing 9.4Leased assets 9.5Staff costs 9.6Administration and corporate costs 9.7Other (provide details if material) – Investments 9.8Total estimated cash outflows 253 18 148 - 701 846 - 1,966 Credit card facilities: 1. Secured - Bank of America, $35,000 facility with interest at 10.75% p.a. 2. Unsecured -National Australia Bank, $150,000 facility with interest at 12.65% p.a. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 - - - - 185 4

 

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. This statement gives a true and fair view of the matters disclosed. 2 Sign here: ............................................................ Company secretary Kevin Fischer Date: 30 October 2018 Print name: Notes 1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 2. 3. + See chapter 19 for defined terms 1 September 2016 Page 5