TALI DIGITAL LIMITED ASX Release
CAPITAL RAISE, INTERIM CEO and CMO APPOINTED, OPERATIONS UPDATE
AND APPENDIX 4C
HIGHLIGHTS
• Placement and Entitlement Offer raise $3.22M
• CMO appointed in April and then as Interim CEO
• First co-development payment received in April 2022 from U.S. partner, Akili
• India and Australia marketing updates
TALi Digital Ltd (ASX: TD1,"TALi" or "the Company"), a leading global digital health business is pleased to provide the following quarterly activities report, together with its Appendix 4C for the quarter ended 30 March 2022 (Q3FY2022).
COMMERCIALISATION AND OPERATIONS UPDATE
Executive Officer changes
In March the Company announced the resignation of Chief Executive Officer (CEO), Glenn Smith (see ASX announcement 30 March 2022). On 27th April the Company announced that in addition to her appointment as Chief Medical Officer (see ASX announcement 5 April 2022) Dr Mary Beth Brinson had been appointed to the role of Interim Chief Executive Officer. In this role she will work with the Board and Executive team to complete the full operational review of the business with a renewed focus on the key deliverables which create shareholder value.
Dr Brinson was former Vice President, Global Clinical Affairs, with medical devices leader Cochlear Limited. She is a qualified Audiologist and has practiced in healthcare and academia in the U.S. and United Kingdom and is an Adjunct Fellow at Macquarie University in Sydney. She holds a Doctorate in Audiology from the University of Louisville in Kentucky, a Master of Business Administration from Rutgers University in New Jersey and a bachelor's degree in Audiology and Speech Pathology from the University of Georgia in the United States. Dr Brinson has held a number of senior clinical roles during a 16-year career at Cochlear including Director of Quality, Clinical and Regulatory Services and Director of Clinical Services, Research and Professional Training.
US Market - Akili Interactive Strategic Licensing Agreement1
The first stage of TALi's Agreement with Akili, a Clinical Development Phase, is progressing. Preparatory work is underway on a pilot study with Duke Clinical Research Institute (DCRI), part of Duke University, as part of the pathway to regulatory approval in the U.S.
1 May be subject to change based on clinical development program endpoints, partner product requirements, US regulator advice, force majeure and other unforeseen events
Per the terms of the Agreement, TALi received the first co-development payment from Akili in April 2022. TALi expects to receive similar co-development payments from Akili during the remainder of Q4 FY22 and Q1 FY23 as part of the Clinical Development Phase1.
A payment of USD$2 million is payable to TALi on receipt of certification from the U.S. Food and Drug Administration (FDA). The agreement is estimated to represent AU$51 million (US$37.5 million) in total future contingent milestone payments plus royalties on potential revenues.
Australia
We are progressing evaluation of the opportunities and plans for expansion in Australia for both DETECT and TRAIN.
India - Times of India Partnership
In December 2021, TALi appointed a new Head of Marketing, Matthew Shaw, whose responsibilities will include maximising the value of this key relationship with the Times of India (TOI) group. During the quarter Mr Shaw and Director of Marketing, Mary Colt, undertook a review of TALi's marketing activities in India.
The company's efforts to commercialise its offerings in India with a direct-to-consumer approach and the partnership with TOI group were initially hampered by COVID-19. Subsequent efforts have delivered significant reach within the target audience but not commensurate sales.
TALi has relaunched marketing activities in India with renewed messaging, a streamlined on-line journey and a refreshed program of awareness raising activity from TOI.
FINANCE UPDATE
COVID-19 impact statement
As per previous quarterly reports the Company confirms that the COVID-19 pandemic has had a material impact on the commercialisation activities of the Company. As examples, the severe COVID-19 crisis in India delayed the launch of TALi with our in market partner the Times Group and the interim shift to home-schooling on a global basis restricted marketing and sales opportunities in that segment.
The Company has sought to proactively manage the financial and operational impacts on the business during the COVID-19 pandemic and welcomes the changing health and economic environments in key markets for the Company.
Capital Raise
During the quarter the Board initiated a capital raise which will strengthen the Company's cash position and provide funding for ongoing operations. A Placement in March 2022 raised $1.54 million before costs while a further $1.68 million before costs was raised via an Entitlement Offer in April 2022.
Outlook
TALi reported a net operating cash outflow for Q3 FY22 of $1.48 million, representing a small increase from the net operating cash outflows in the prior quarter ($1.17 million) as a result of increased outflows on research and development, marketing and corporate expenditure.
TALi reported an overall net inflow for the March 2022 quarter of $0.16 million, largely attributed to the March 2022 Placement raising $1.54 million (before costs) and $0.20 million from Tranche 2 of the Victorian Government non-dilutive R&D tax financing facility.
As at 31 March 2022, TALi had a closing cash balance of $1.44 million, and in the quarter ending 30 June 2022 expects to receive a further $1.68 million (before costs) in funding from the Entitlement Offer as announced on 18 March 2022.
During the quarter, TALi issued 139,785,868 ordinary shares via a Placement to new and existing institutional and sophisticated investors, raising $1.54 million (before costs). Shares were issued at $0.011, representing a 42.1% discount to the last closing price and 53.3% discount to the volume weighted average price over the prior 15 trading days. The Company also announced a 1 for 7
Entitlement Offer for existing shareholders on the same terms as the Placement. The Entitlement Offer was fully underwritten to raise an additional $1.68 million (before costs). The funds raised under the
Placement and Entitlement Offer will be used to support the commercialisation of the Company's first-
generation products, already available in Australia and India, the clinical development of its second-generation offering, and continued global partnership discussions.
TALi also drew down a second and final tranche of $203,744 from a facility under the Victorian Government R&D Tax Cash Flow Incentive scheme (Facility), bringing total proceeds of the Facility to $503,744. The Facility is repayable from the proceeds of the FY22 and FY233 R&D Tax Incentive Rebates, expected by 31 October 2023.
In accordance with Listing Rule 4.7C, payments made to related parties and their associates included in item 6.1 of the Appendix 4C ($108,617) includes Director fees and salary (including superannuation) for the CEO and Managing Director and related parties.
The Company has a sharp focus on delivering to the development milestones under the agreement with Akili which are forecast to provide significant milestone and sales-based royalty payments to TALi. The Company looks forward to providing the market further updates on commercialisation activities of the Company as appropriate and in future quarterly activities reports.
Release authorised by:
The Board of TALi Digital Limited
CONTACT
Corporate Sue MacLeman Chair
Investors
Mary Elizabeth Brinson Interim CEO
TALi Digital 1300 082 013investors@talidigital.com
TALi Digital 1300 082 013investors@talidigital.com
About TALi Digital
TALi Digital Limited (ASX: TD1) is a digital health company delivering diagnostic and therapeutic solutions to enhance cognitive function and behaviour.
The Company has built a patented platform technology with our first solution targeting cognitive attention skills during early childhood via the evidence-based screening (DETECT®) and training (TRAIN®) modules. This program is complementary to existing diagnosis and therapy, placing TALi at the forefront of improving early intervention for childhood attention and concentration performance. We believe in healthy, happier minds - our vision is to deliver a personalised digital experience to enhance cognitive care.
A continuous innovation focus will see the Company deliver a series of product developments in ADHD (Attention Deficit Hyperactivity Disorder) and ASD (Autism Spectrum Disorder). Learn more at talidigital.com.
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
TALi DIGITAL LIMITED
ABN
53 108 150 750
Quarter ended ("current quarter")
31 March 2022
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 |
| 3 (115) - (125) - (684) (562) - - (3) - - - | 10 (215) - (232) - (2,040) (1,465) - - (9) - 796 - |
(1,486) | (3,155) |
2.
Cash flows from investing activities
2.1
Payments to acquire or for:
(a) entities
(b) businesses
(c) property, plant and equipment
- - (2)
- - (13)
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Tali Digital Ltd. published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 04:11:37 UTC.
