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ASX ANNOUNCEMENT / MEDIA RELEASE 16 JULY 2021 AROA BIOSURGERY JUNE 2021 4C - COMMENTARY AROA ™ HIGHLIGHTS • • • • • • • • US medical procedure numbers continue to reflect a positive trend supporting improved sales momentum . AROA maintains its published product sales guidance of $ 30-33 million ( up 39-53 % on FY21 ) and gross margin above 70 % . Net cash outflow from operations was NZ $ 2.7 million for the June quarter , in line with management expectations . Cash on hand of NZ $ 31.4 million at 30 June 2021 . New Myriad Morcells TM product line extension launched at Society for Advanced Wound Care conference 10-14 May 2021 . Large retrospective EndoformTM real - world study in diabetic foot ulcers concluded and submitted , with publication expected in September quarter . AROA's dead space management system targeting an unmet need with an estimated US $ 2.5 billion market was previewed with investors and three further patents filed relating to key aspects of this technology . Manufacturing construction progressing to plan to expand capacity from NZ $ 35 million to NZ $ 100 million in annual sales . Annual General Meeting scheduled for 1pm ( NZST ) , 11am ( AEST ) on Tuesday 20 July 2021 . Soft tissue regeneration company Aroa Biosurgery Limited ( ASX : ARX , ' AROA ' or the ' Company ' ) is pleased to provide an update on its activities for the quarter ended 30 June 2021 . Financial commentary AROA maintains product sales guidance of NZ $ 30-33 million ( up 39-53 % on FY21 ) and gross margin above 70 % . EBITDA will continue to be negative as previously forecast . Guidance is subject to no resurgence of COVID - 19 in the US , TELA Bio delivering strong growth ( based on its revenue guidance of 48-65 % growth in CY21 compared to CY20 ) and continued improvement in US medical procedure numbers . It also assumes an average NZD / USD exchange rate of US $ 0.72 . Cash receipts for Q1 FY22 were NZ $ 5.3 million , reflecting sustained sales activities over the course of the June quarter . This reflects lumpy product shipments and timing of payments , but is in line with management expectations . Net cash outflow from operations was NZ $ 2.7 million for the June quarter , ending the quarter with cash on hand of NZ $ 31.4 million . In line with management's expectations , this reflects payments which typically fall within this quarter , including employee bonuses for achievement of the Company's FY21 performance goals and year end compliance costs . In accordance with ASX Listing Rule 4.7C.3 , AROA advises that an aggregate amount of NZ $ 102,000 was paid during the quarter to AROA's five Non - Executive Directors in payment of their director fees . Appendix A provides a summary of actual expenditure , compared to the estimated use of funds set out in AROA's IPO Prospectus , in accordance with ASX Listing Rule 4.7C . Cash expenditure is consistent with the use of funds set out in that Prospectus . Myriad Morcells launched at SAWC Spring Following US FDA 510 ( k ) clearance for Myriad Morcells in April 2021 , AROA launched Myriad Morcells at the Symposium for Advanced Wound Care Conference ( ' SAWC ' ) Spring . SAWC is the pre - eminent US wound event providing education , advanced state - of - the - art clinical reviews , and emerging research findings . Myriad Morcells , is a powder format of Myriad Matrix ™ that easily conforms to optimize contact with irregular wound beds and delivers a bolus of biologically important extracellular matrix proteins known to ' kick start ' healing . Myriad Morcells will be used alone in some cases and combined with Myriad Matrix in other cases . Both products take advantage of the AROA ECM ™ bioscaffold technology , including important secondary molecules and residual vascular channels to support new tissue growth , which may lead to faster healing , recovery and hospital discharge . Earlier pre - clinical studies have shown that the AROA ECM technology Aroa is unlocking regenerative healing for everybody AROA BIOSURGERY LIMITED ARBN 638 867 473 NZCN 1980577 64 Richard Pearse Drive , Auckland 2022 , New Zealand AROABIO.COM