Holista CollTech : Quarterly Activity Report and Appendix 4C

For personal use only

Holista Colltech Limited

(ASX:HCT / ABN 24 094 515 992)

283 Rokeby Road Subiaco WA 6008

P: [phone]

W:www.holistaco.com

Appendix 4C and Activities Report: Strong Finish to the FY as All Divisions Recorded Growth in 4Q 2021

ASX Announcement

28 January 2022

Highlights

• Significant improvement in Operating Cash Flow as Group sales jumped 27% previous corresponding period (pcp) to $2.5m
• All Holista's divisions recorded sales increases during the quarter vs. pcp
• Health Supplement division continues to be a major driver for the improved performance as quarterly sales increased 31% pcp
• Food Ingredients sales grew 10% pcp, Ovine Collagen rose 19% pcp and Infection Control staged a 231% pcp turnaround from a low base
• Growth in 4Q 2021 puts Holista on track to deliver a strong full year result next month
• Positive outlook with multiple growth opportunities across all Holista's divisions in 2022
• All figures are subject to the final external audit

Holista Colltech Limited (ASX: HCT, "Holista" or "the Company") is pleased to provide the following quarterly update and commentary on its Appendix 4C for the three months to 31 December 2021.

Summary of cash position

The Company's cash and cash equivalent holdings at the end of the quarter was $1.2 million and it has access to a further $0.3 million in available and unused debt facilities to take the total available funds to just over $1.5 million at the end of the December quarter.

A 25% increase in Receipts from Customers over the previous quarter and lower Administration and Corporate Costs from Holista's efficiency drive contributed to the Company's cash position.

1

For personal use only

Importantly, Holista recorded an increase in sales across all its divisions in the latest quarter compared to previous corresponding period (pcp) - meaning 4Q 2021 vs.4Q 2020.

As detailed in Item 6.1 of the accompanying Appendix 4C, the Company paid $112,000 in relation to overhead reimbursement costs, consulting fees and directors remuneration to its related parties and associates.

Operating activities

Subject to the final external audit, the total sales across all Holista's divisions came in at $2.5 million in the December quarter, which represents a 27.3% increase over the pcp. The improved performance in 4Q 2021 saw Operating Cash Outflow narrow significantly to under $0.3 million from $0.8 million in the September 2021 quarter, and this bodes well for the Company's full year results, which will be released to the market next month.

Holista's Health Supplements division contributed significantly to the strong December quarter performance. This division continued to grow with sales in the quarter jumping 31% over the pcp and 15.3% over 3Q 2021 to $2 million.

The Company is seeing strong demand for its supplements and vitamins in light of the ongoing easing of COVID-19 social restrictions in Malaysia. The launch of Holista's water soluble vitamin D product also contributed to the positive result.

Divisional Quarterly Sales Performance

$K

+31% pcp

2,000

1,500

1,000

500		+10% pcp
					+19% pcp	+231% pcp
0
Supplement	Food Ingredients		Ovine Collagen	Infection Control
				4Q 2021		4Q 2020

The Company's Food Ingredients division recorded a 10.0% uplift in sales vs. the pcp and 85.3% over the previous quarter to $0.4 million. The improved results were driven by stronger orders from Costanzo's Bakery, Inc. and HWH International.

Holista is currently working with Country Farms, a wholly owned subsidiary of Berjaya Corporation Berhad, to customise the ingredients in Holista's products to meet the needs of all companies within Berjaya.

Additionally, Holista, which signed a term sheet with Berjaya's Country Farms Sdn Bhd during the quarter, has completed the final testing of a healthier version of croissant that will be launched in 327 Starbuck stores across Malaysia.

2

For personal use only

Under the term sheet, Country Farms will become the Centre of Distribution for Holista's range of healthy food products for companies within the Berjaya group, which includes the franchises of Starbucks, 7-Eleven and Kenny Rogers Roasters, amongst others (Note 1).

Meanwhile, the Company's Ovine Collagen division reported an 18.8% pcp increase in revenue to just over $0.1 million due to orders from a major cosmetics manufacturer in Thailand. In China, Holista secured the approval for its Material Safety Data Sheet (MSDS) for bulk ovine collagen from Chinese Customs. This will allow the shipping of bulk raw collagen for the final testing that is required to secure the necessary approvals in China.

Holista's Infection Control division recorded a 231.4% pcp improvement in sales, albeit it's coming off a low base, to reach $23,000 in the latest quarter. The nasal balm was launched in Q4 2021 and is now available online (Note 2). The launch of this innovative product in the United States via iGalen is scheduled for the current quarter.

The registration of the previously announced SARS-CoV-2 rapid test kit branded as Gene Sign is pending final approval in Colombia and will have corresponding approvals in Brazil, Argentina and Mexico in a unique four-country arrangement. In North America, Gene Sign is undergoing approval under the Medical Device Single Audit Program (MDSAP) with the United States Food and Drug Administration (FDA).

Gene Sign's Reverse-TranscriptionLoop-mediated isothermal amplification (RT- LAMP) technology is undergoing final evaluation in the United Kingdom by the COVID Testing Devices Authorisation (CTDA). RT-LAMP technology is accepted by the US FDA as an alternative to Reverse Transcription Polymerase Chain Reaction (RT-PCR) as it is cheaper and more efficient (Note 3).

Just as importantly, there are multiple growth opportunities for all Holista's divisions in 2022 as outlined in the Company's previous announcements. These include new products, tailwinds from the pandemic that is driving demand for health and wellness solutions, expansion into new markets like China and further progression of key partnerships that Holista has announced to the market last year (Note 4).

Investing and financing activities

The $17,000 cash outflow from investing activities is largely related to the purchase of fixed assets during the quarter.

Holista also recorded an $8,000 outflow being the difference between what it received and what it repaid in trade financing during the period.

ASX Additional Information

Pursuant to ASX Listing Rule 4.7C.1, and outlined in the Appendix 4C, the Company advises it spent:

$1.182 million on product manufacturing and operating costs, $33k on research and development, $99k on advertising and marketing, $626k on staff costs and $274k on administration and corporate costs.

3

For personal use only

Details of the business activities are found within this report.

Pursuant to ASX LR4.7C.3, the Company advises that payments of $112k to related parties are to directors.

This announcement has been approved by the Board of Directors.

-ENDS-

Note 1: refer to ASX announcement of 12 October 2021. The term sheet is for the sales and marketing of Holista's low GI pre-mix flow products, sugar reduction technology, plant-based meat products and dietary supplements. The term sheet is not a purchase agreement and does not obligate Berjaya to buy Holista;s products. Exclusive rights are subject to both parties reaching a formal agreement. At this stage it is too early to quantify any financial impact of the term sheet.

Note 2 : https://alterni.com/product/natshield-nasal-protecting-balm/

Note 3 : https://www.fda.gov/medical-devices/coronavirus-disease-2019-covid-19-emergency-use-authorizations-medical-devices/in-vitro-diagnostics-euas-molecular-diagnostic-tests-sars-cov-2

Note 4 : refer to ASX announcement of 12 November 2021, page 12.

About Holista Colltech Limited

Holista Colltech Ltd ("Holista" or "the Company") is an innovator in health and wellness solutions based in Perth, Australia. It is listed on the Australian Securities Exchange (ASX:HCT).

Holista's core business divisions are Dietary Supplements, Healthy Food Ingredients, Ovine Collagen and Infection Control Solutions. The suite of health and food related solutions combines the best of nature and science to address evolving needs so that people can live better and healthier lives.

Key products include one of the market-leading and best-selling health supplements, low-GI food ingredients used by leading food manufacturers, disease-free ovine collagen, all-natural, and non-toxic and effective sanitisers for consumers and industrial applications.

Over the years, the company has successfully developed and patented world- leading technologies in the field of Global Health and Wellness Industry.

Holista is passionate about combining economic success with enriching lives for a sustainable future.

For further information, please contact:

To join Investor Mailing list: [e-mail]

General Enquiries: [e-mail]

4

For personal use only

Australia	Malaysia
283 Rokeby Road Subiaco	12th Floor, Amcorp Trade Centre, PJ
WA 6008 Western Australia	Tower No. 18, Persiaran Barat off Jalan
Australia	Timur 46000, Petaling Jaya, Malaysia
P: [phone]	P: [phone] ; F: [phone]

Australia and New Zealand Investor relations and media enquiries:

Brendon Lau, Vantage Point Partners

1. [e-mail]

1. [phone]

Global Investor relations and media enquiries:

WeR1 Consultants Pte Ltd

1. [e-mail]

1. [phone]

5