Alcidion Group Quarterly Report: Successful Reverse Takeover of Naracoota Resources, Commercialiation Strategy Commenced

29th July 2016, ASX Announcement

Executive Summary

Alcidion’s first quarter following the successful reverse takeover of Naracoota Resources Limited marked the commencement of the Company’s commercialisation strategy of its Miya platform.

As at 29^th July 2016 the Company maintains $6.51 million in available cash, this amount excludes the provision for an estimated Research & Development Tax Incentive of $997k.

During FY16, the Company continued its committment to Product Development, having invested $2.20m in Research & Development, principally focussing on the development of its highly anticipated Computerized Physician Order Entry (CPOE) platform and the deployment of this technology at our luminary site in the Northern Territory.

The Company commenced its commercialiation strategy, which in broad terms adopts an engagement strategy that will see the Alcidion Sales Team systematically engage the continuum of Australian and New Zealand healthcare organisations, whilst simultaneously seeking Value Added Resellers and Strategic Partnerships.

The healthcare industry has realized that the traditional approaches to patient flow management and cost management are inadequate to keep pace with the emerging challenges. Therefore, patient flow management solutions will be among the priorities on the investment list of healthcare organizations for highly streamlined patient flow outcomes and cost management.

Completion of the Reverse Takeover of Naracoota Resources

On 29 February 2016, the Company completed the Reverse Takeover of Naracoota Resources (ASX:NRR).  Both Naracoota Resources Limited and Alcidion Corporation Pty Ltd incurred substantial one-off legal, accounting, corporate advisory and compliance expenses leading up to and post Reverse Takeover, which resulted in an estimated $550k of outbound cash flows in FY16. The prospectus detailed an estimated $400k of expenditure on behalf of Naracoota Resources for the Reverse Takeover and Alcidion Corporation Pty Ltd incurred $150k of expenditure directly related to the transaction.

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