Results for announcement to the market App1

AFT Pharmaceuticals Limited Results for announcement to the market Reporting Period: For the six month reporting period to September 30 2017 Previous Reporting Period: For the six month reporting period to September 30 2016 Amount NZ$'000 Percentage Change Revenues from ordinary activities 36,561 Up 23% Loss from ordinary activities after tax attributable to security holders (6,873) Down 38% Net loss attributable to security holders (6,883) Down 33% Interim / Final Dividend Amount per security NZ$ Imputed Amount per security NZ$ Interim - Unlisted Redeemable preference shares NZ 3.5c NZ 1.4c Record Date: 14 June 2017 Dividend payment date: 30 June 2017 Net Tangible Assets per Share September 30 2017 NZ$ September 30 2016 NZ$ Net Tangible Assets per Share 0.11 0.16 Comments: Accompanying this announcement are the Group's unaudited consolidated financial statements for the six months ended 30 September 2017. These financial statements and the half year results commentary dated November 23 2017 provide the balance of information requirements in accordance with NZX Listing Rule 10.3.2 and Appendix 1. Pursuant to ASX listing rule 1.15.3 AFT Pharmaceuticals Limited confirms that it continues to comply with the rules of its home exchange (NZX Main Board). The unlisted Redeemable preference shares issued on 24 March 2017 attract a dividend rate of 9.4% per annum, or 25.8 cents per share per annum. For the 31 March 2017 and 30 June 2017 quarter ends, 50% of the dividend was paid in cash and included in the above table. For the 30 September 2017 quarter end no dividends were paid. The remaining 50% of dividends net of withholding taxes for the 31 March 2017 and 30 June 2017 quarter ends together with all of the dividends net of withholding taxes for the 30 September 2017 quarter end have been accumulated in the Redeemable Preference Share Reserve. No dividends have been paid on ordinary shares. Additional Information The following is additional information to accompany the Company's interim report for the six months ended 30 September 2017. Summary of waiver granted On 21 December 2015, NZX granted the Company a waiver (Original Waiver) from NZX Main Board Listing Rule 5.2.3 in respect of its quoted shares ("Shares") for a period of 12 months to the extent the Rule required the Company to have at least 25% of Shares held by Members of the Public holding at least a Minimum Holding (as that term is defined in the NZX Main Board Listing Rules). The Original Waiver has subsequently expired. On 21 December 2016, a further waiver from NZX Main Board Listing Rule 5.2.3 was granted to AFT for a further 12 month period. The waiver was granted on the following conditions: o NZX receives an undertaking from the Atkinson Family Trust ("AF Trust") that it will not increase its holding in AFT during the term of the waiver, otherwise than as a result of an allotment pursuant to an offer or issue of shares that is made pro-rata to all AFT shareholders; o at least 10% of shares are held by more than 500 Members of the Public, with each Member of the Public holding at least a Minimum Holding; o AFT clearly and prominently discloses this waiver, its conditions, and its implications in AFT's half year and annual reports, and in any Offer Documents relating to any offer of shares undertaken by AFT, during the period of the waiver; o AFT consistently monitors the total number of Members of the Public holding shares and the percentage of shares held by Members of the Public holding at least a Minimum Holding; o AFT notifies NZX as soon as practicable if there is any material reduction to the total number of Members of the Public holding at least a Minimum Holding of shares, and/or the percentage of shares held by Members of the Public holding at least a Minimum Holding; and o AFT provides NZX with a written quarterly update of the total number of Members of the Public holding shares holding at least a Minimum Holding and the percentage of shares held by Members of the Public holding at least a Minimum Holding. The quarterly updates are from the date the waiver is granted, for the period of the waiver. The updates are to be provided to NZX within ten business days of the end of each quarter. o AFT provides NZX, with the second quarterly update, an update on: o the proposed initiatives AFT intends to undertake to materially increase the percentage of shares held by Members of the Public before the expiry of the waiver; and o the intentions of the parties under the Escrow Arrangements in respect of their ongoing holding or sale of any of the shares released from escrow during the waiver period (following engagement by AFT with such parties). The implication of the waiver is that the Shares may not be widely held and that there may be reduced liquidity in the Shares following quotation. [End of release] For more information: Malcolm Tubby Chief Financial Officer, AFT Pharmaceuticals Ltd Phone: +64 9 488 0232 Email: malcolm@aftpharm.com End CA:00310777 For:AFT Type:INTERIM Time:2017-11-23 08:30:53