Strictly Confidential

OBJ Ltd
Placement Term Sheet - September 2015
OBJ Limited (OBJ.ASX) (OBJ) has engaged Baker Young Stockbrokers Limited (BYS) as Lead Manager to the proposed Placement. This indicative Term Sheet specifies the indicative timetable and terms and conditions on which the Offer
will proceed. This document has been prepared for the general information of investors and not having regard to any particular persons financial situation, objectives or needs. Accordingly, in so far as any information may constitute advice
(whether express or implied), it is general advice and no recipient should rely upon it without having obtained specific advice from their advisor. Baker Young Stockbrokers Limited makes no representation, gives no warranty and does not
accept any responsibility for the accuracy or completeness of any recommendation, information or advice contained herein.

COMPANY DETAILS 22.09.2015

OFFER DETAILS

ASX Code:
Share Price:
30 trading day VWAP:
Shares currently on issue:
Market Capitalisation:
Cash (30 Junes 2015):
Performance Rights:
Options on issue:
52 week low/high:

Issue Type

OBJ.ASX
6.3 cents 21/09/2015
~$0.065
~ 1,652 million (undiluted)
~$104 million (undiluted)
~$3.5 million
88m at various hurdles
None on issue
$0.048 - $0.13

Placement to s708(8),(10),(11) investors defined by

Corporations Act 2001 & a SPP to raise $1.5m on
the same terms as the Placement
Security Type
Fully Paid Ordinary Shares
Placement amount ~$6m (with the ability to increase)
Placement Price
$0.057
Placement size
~106m Shares
Discount
~13% discount to 10 day VWAP, 10% to last trade
SPP Amount
$1.5m
Placement & SPP rank pari passu with existing shares
Ranking

MANAGEMENT
Experienced Executive team and Board of Directors with a proven track record in the Healthcare/Pharma industry:
Glyn Denison Non Exec Chairman - over 30 years experience in international business development including 16 years in technology intensive
industries in Europe, China and South East Asia and Australia and has extensive managerial experience in high technology companies.
Jeff Edwards Managing Director & Founder - responsible for scientific and technology development & oversees/assists Partner trials. Also
responsible for client support and works closely with the Companys International Partnering and Executive team.
Dr Christopher Quirk Medical Director - 25 years in both lecturing and research at the University of Western Australia. Experience in the public
and private sector as a consultant dermatologist. Fellow of the Australasian College of Dermatologists and a Member of the American Academy
of Dermatology.
John Palermo FCA ASCA Company Secretary - John is a Chartered Accountant with 18 years experience in public practice. His areas of
expertise are in corporate transaction execution, strategic business management and business structuring. John brings corporate governance and
best practice financial management to OBJ.

COMPANY OVERVIEW
OBJ Limited (OBJ) is an Australian life sciences company that has developed various proprietary magnetic micro-array drug delivery and product
enhancement technologies for the pharmaceutical, healthcare, cosmetic, homecare and consumer goods sectors. The Companys technology has
been developed over 15 years and is proven by independent studies & validated by collaboration agreements with some of the worlds major
pharmaceutical and consumer companies.
OBJ has partnered with the worlds leading companies, Procter & Gamble (P&G), GlaxoSmithKline (GSK) & COTY to develop and bring to market
next generation products that deliver products transdermally (the desired molecule is gently pushed through the epidermis at which point the
body naturally diffuses it) using physical science rather than chemistry to provide new levels of product performance. As OBJs technology improves
the effectiveness and efficiency of existing formulations/ingredients of products already in the market the regulatory pathway is greatly reduced
and thus the time to market should likewise be significantly shorter.
OBJ offers a portfolio of proprietary technologies and supports partners by providing IP-protected market exclusivity, expertise in magnetic array
design, feasibility, efficacy, claims testing, engineering and production.
After extensive development and numerous trials OBJ is now establishing itself as the selected technology partner for enhanced delivery and
product performance to an increasing number of major international corporations in both the pharmaceutical and consumer healthcare fields.
OBJ's Technologies:
OBJ utilises the movement of molecules in formulations to induce permeability changes in the skin and to redirect consumer energy to offer a new
way of managing the performance, speed of action, depth of penetration and delivery of active ingredients in a wide range of pharmaceutical and
consumer products. OBJ has developed both powered and non-powered technologies in four separate product platforms that meet the cost,
.
usability and performance requirements of a wide range of consumer products.
OBJs Magnetic Micro-array and Field In Motion technologies are non-powered technologies and ideal for lower cost products such as brushes,
applicators and various devices that are moved by the consumer as part of normal behaviour. These are well suited to high volume, low cost
products where substantial increases in product performance can be achieved for just a few cents.
.
Dermaportation and Enhanced Partitioning and Penetration Systems (EPPS) are powered technologies and are well suited to smart products and
applications (smart-phone connectivity) where multiple formulations delivery is desired by the consumer. They employ micro-processor controlled
magnetic enhancement system that has sufficient computing power to provide a number of additional consumer focused value-added capabilities
such as web programmability, smart-phone connectivity and personalised treatments. These capabilities have been incorporated into the product
platform involving COTY/Philosophy and the ConnectBeauty Platform.
.
Dynamically Configurable Emulsion technology (DCE) is OBJs newest technology, which is the worlds first technology for the management and
control of emulsions during application to the skin. Emulsions are the most common type of formulations used by pharmaceutical, skin care and
cosmetic companies. DCE technology uses a number of physical energy forms to interact directly with intermolecular bonds that give emulsions
stability and a second set of surface energies to orderly layer the components into benefited configurations during application to the skin.
This Term Sheet is indicative only. All terms and conditions are subject to change at the sole discretion of BYS. Please note that the information contained in it is both price sensitive and confidential and must not be distributed
or disclosed to any other party without the prior written approval of BYS. All placees and any recipients of any information in relation to OBJ or the Offer from OBJ or BYS acknowledge and agree that they have conducted their
own due diligence investigations in respect of OBJ and have not relied upon any representations of OBJ or BYS and their officers, employees, advisers or agents. OBJ and BYS make no implied or express representation or
warranty as to the accuracy, currency, reliability or completeness of the information contained in the OBJ PowerPoint presentation or the presentations made at the roadshow meetings or telephone conversations and expressly
disclaim any liability arising from the same (including, without limitation, errors or omissions). Insofar as any party passes on information from the same, OBJ and BYS and their officers, employees, advisers or agents expressly
disavow the accuracy of such information. You confirm by bidding for an allocation in the capital raising that you act and have acted entirely on the basis of your own investigations and decisions and your own independent
evaluation of the Company and not in reliance on any act or representation made by OBJ or BYS.

INVESTMENT HIGHLIGHTS

OBJ has validated its novel di-magnetic repulsion technology via the execution of a Multi-Product Development Agreement with P&G.
The first product under the P&G PDA, the SK-II Magnetic Eye Wand, has been successfully launched with SK-II committing to a multi product
global roll-out over 3-5 years expected to commence early 2016.
SK-II is a US$2 Billion Brand and we anticipate just one of these SK-II product roll-outs will allow OBJ to achieve profitability.
OBJ recently announced a seventh P&G Work Plan which involves the shaving products division of P&G. P&G shaving products that would
incorporate OBJs novel patented technology represent significant royalty opportunity to OBJ. P&G owns the worlds largest shaving brands
which net P&G ~US$7.6 Billion p.a. in sales major brands include Gillette & Mach 3.
OBJ has four other technology platforms based on its initial transdermal delivery technology that represent significant partnering/licensing
opportunities with major global companies over the next 12 months (Coty inc Partnership, BodyGuard, Connect Beauty & DCE).
OBJs technologies are initially aimed at the cosmetic and OTC markets which dont have the regulatory hurdles that pharmaceuticals do.
BodyGuard Double-blind Clinical Trial being conducted by the University of Queensland is expected to read results in November 2015.
Positive results from this pivotal trial will likely result in a significant licensing opportunity for OBJ.
The OBJ technology is a Platform technology there are a broad range of applications from cosmetics to oral health to lifestyle fitness to
pharmaceutical. OBJs has a strong development pipeline which will continue to add value to the company for many years.
The Global beauty market is extremely large The global beauty industry is a $270 Billion p.a. industry that is currently growing at 3-4% p.a.
Strong revenue growth predicted for 2016 The initial revenues from Coty and the soft-launch phase of the SK-II Eye Wand were ~$600k.
The Company anticipates that revenues under the full commercial rollout over multiple SK-II products will be substantially higher given preorder volumes have been confirmed.
P&G undertook two major human clinical trials conducted by an independent US-based Contract Research Organisation. The results
showed that the OBJ magnetic microarrays delivered substantial statistical improvements in skin barrier functions and skin health indices. This
has opened the door for OBJ to work with many additional P&G brands.
P&G has extended their original PDA from three Work Plans to Seven Demonstrating the significance of the technology and their
commitment to OBJ. These Seven Work Plans are expected to yield a pipeline of multiple P&G products incorporating OBJs technology
thus providing multiple royalty revenue streams for OBJ.
OBJs partners fully cover R&D spend of JV programs - OBJs partners are all global leaders in their respective fields and are fully funding the
various programs they have partnered with OBJ.
OBJ does not manufacture any products it is solely a R&D and IP company and derives its revenues from royalty and licence payments.
Experienced Management who have executed a number of Collaboration/Joint Research Agreements.
Broad and overlapping patent protection (granted or applied for) with a growing patent portfolio.
Directors/Founders aligned with shareholders, own ~10% of the issued capital.

OBJ TECHNOLOGIES

USE OF FUNDS
As a result of many major pharmaceutical companies now outsourcing
product development and innovation OBJ has been continually requested by
its partners to take on the end development of products and devices that
incorporate OBJs technologies.
USE OF FUNDS

To accelerate OBJs various pipeline programs additional funding will

advance the development pipeline more rapidly which will bring
forward potential global licence agreements/partnerships; This
specifically relates to:
Bodyguard range,
the new DCE technology (+ extensions of DCE),
ConnectBeauty App/Digital developments, and
Surface Care developments.

To ensure the company is well capitalised with a strong balance sheet

for upcoming/continued licence negotiations;

Intellectual Property maintenance; and

Technology Expansion Programs.

PLACEMENT TIMETABLE (AEST, indicative & subject to change)

Trading Halt announced
Firm bids due
Firm allocations advised
Return of executed Firm
Acceptances
Announcement of Placement &
recommence Trading
DvP Settlement & Allotment of
Shares

nd

Pre-Market, Tuesday 22 September

rd

9am (EST), Wednesday 23 September

rd

11am (EST), Wednesday 23 September

rd

1pm (EST), Wednesday 23 September

th

Pre-Market, Thursday 24 September

st

Thursday 1 October

SPP TIMETABLE (AEST, indicative & subject to change)

Record Date for the SPP

Wednesday 23rd September

Announcement of SPP

Pre-Market, Thursday 24th September

SPP Offer documents dispatched

Tuesday 6th

SPP Opens

Monday 12th October

SPP Closes

Thursday 29th October

SPP Amount Raised Announced

Tuesday 3rd November

Allotment of new shares under the

SPP

Thursday 5th November

SPP Shares commence trading

Friday 14th November

CONTACT DETAILS
Baker Young Stockbrokers Limited
Dirk van Dissel Associate Director - Corporate
OBJ Limited
Glyn Denison
Non-Executive Director

dirk.vandissel@bakeryoung.com.au

ph (08) 8236 8869

GDenison@OBJ.com.au

ph (08) 9443 3011