viewCellmid Limited

Cellmid raises $9 million for distribution and invites shareholders to invest $1 million

The company will use the capital raised as fuel for distributing its products in Australian and international markets.

Australian dollar notes
There was strong demand from new and existing institutional investors

Cellmid Limited (ASX:CDY) has raised $9 million from sophisticated and institutional investors and will invite shareholders to participate in a $1 million share placement plan.

The $9 million from high-quality investors is split into two tranches, with one to be approved by shareholders.



Cellmid said the placement “closed with strong demand from new and existing institutional investors”.

READ: Cellmid lays out major plan for product and distribution expansion

Proceeds will provide working capital to drive distribution of Cellmid’s products and grow its health business, pushing out its flagship évolis product range, and facilitating distribution in Australia, New Zealand and new global markets.

Sydney-based Cellmid hopes to increase its proceeds from an exclusive distribution agreement with Fillerina for the two Southern Hemisphere countries.

READ: Cellmid's year-to-date sales exceed full-year sales for 2017 with further momentum expected

Cellmid chairman Dr David King said: “We are delighted to secure funding for the expansion of our consumer health business at this critical stage.

“The funding will allow us to turbo charge our growth plans and take the company closer to profitability.”

It comes at a fortuitous time as distribution channels have been set up in major global markets such as China and the US.

READ: Cellmid set to launch its évolis hair care products in the lucrative Chinese market

The Blue Ocean Equities Pty Ltd-led 23.7 million placement was priced at 38 cents a share, which was a 17.8% discount to Cellmid’s 30-day VWAP on its last trading day of July 26.

The tranche that investors will be asked to approve at an annual meeting pencilled in for September 7 will be a 12.5% placement to directors: 11.1% to the Dennis Eck family, 0.3% to Martin Cross and 1.1% to managing director and CEO Maria Halasz.

That tranche makes up more than 19 million shares and about $7.3 million of the capital raising while the remaining unconditional placement will bring in about $1.7 million.

The unconditionally approved shares will be settled on Friday and allotted next Monday.

If the director component of the share-raising is approved, the shares are expected to be settled on August 11 and allotted the next day.

READ: Cellmid secures partnership with Bloomingdales to sell évolis

Shareholders will be able to participate in the offer at the same buy-in price for a $15,000 maximum increase to their investment.

The investors must have been on the share register at 7pm Australian Eastern Standard Time yesterday and be registered to an Australian or New Zealand address.

Quick facts: Cellmid Limited

Price: 0.23 AUD

Market: ASX
Market Cap: $20.24 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Cellmid Limited named herein, including the promotion by the Company of Cellmid Limited in any Content on the Site, the Company receives from...



Cellmid Limited outlines key components for FY2020 growth strategy

Cellmid Limited (ASX:CDY) chief executive officer and managing director Maria Halasz updates Proactive Investors on the company’s key components for its FY2020 growth strategy, which includes an exciting new global product to assist ageing hair.  Cellmid is a listed company with health...

on 14/8/19

3 min read