Cellmid Ltd (ASX:CDY) has entered into a national trading agreement with API Services Australia Pty Ltd (API) for the ranging of its évolis® Professional anti-ageing haircare products in about 400 Priceline Pharmacy stores around Australia.
The agreement is expected to deliver exclusive offers and unique hair health advisory services to Priceline Pharmacy customers.
In-store sales of évolis® Professional will be supported by the current évolis® sales and marketing team through an extensive education program about hair ageing, the hair cycle and anti-ageing haircare.
The products are expected to be available in Priceline stores from this month.
"Thrilled to partner with Priceline"
Chief executive officer Maria Halasz said: “We are thrilled to partner with the Priceline team, who excel in knowing their customers and are dedicated to providing outstanding retail value and unique service.”
National head of beauty at Price Pharmacy Susie Bearzi said: “We are excited about expanding our range with the évolis® Professional brand to provide our customers with a result-driven regimen to promote healthy hair throughout their various life stages.”
Shares have been up almost 7% on the news to an intra-day high of 24 cents.
Signing the agreement is in line with Cellmid’s strategic plan released in February 2019 targeting an Australian national retail partnership.
SPP raises $1.044 million
The company has also closed the share purchase plan (SPP) announced on October 14 after raising $1.044 million, more than the $500,000 originally targeted by the board.
This SPP follows a placement to sophisticated and institutional investors which raised $1.5 million
The $2.544 million in funds will be used to drive growth in the consumer health business globally, including the recently signed partnerships with Douglas in Germany, openshop in Australia and Habesul in China.
Halasz said: “We thank our shareholders and new investors for their support in this capital raising.
“The additional funding will allow us to fast-track our growth with our partners and invest into our e-commerce capabilities to fulfill the increasing demand for our products locally and overseas.”
On track for operational profitability
Cellmid received SPP applications for 5.22 million shares at 20 cents each and the board has approved the issue with no scale-back of applications.
The SPP was offered at the same price as the share placement and shares are expected to be allotted around November 8.
Cellmid has also today confirmed guidance that it is on track to reach operational profitability in the consumer health business in FY2020.