Cellmid Ltd (ASX:CDY) has been granted a trading halt by the ASX ahead of an announcement regarding a capital raising.
The trading halt will be in place until the beginning of regular trading on Monday, April 6, or when an announcement is released to the market, whichever occurs earliest.
Shares last traded at 27 cents, up from 8.3 cents on March 18.
Role in combatting COVID-19
Cellmid is playing a role in Australia’s efforts to combat the COVID-19 pandemic through an agreement to supply rapid diagnostic tests (RDT), with products expected to arrive in the country by early April.
The test uses a virus-specific detection method that delivers results anywhere between three to 15 minutes and requires no laboratory equipment
It also does not require the use of Polymerase chain reaction (PCR) equipment, which is one of the limiting factors in wide-scale testing.
Since the outbreak began, Australia has conducted just over 190,000 tests, however, as well as being limited by the availability of PCR equipment, the pathology system is also limited by the lack of reagents.
Rapid tests are important to remove this bottleneck.
Benefit could be “enormous”
Cellmid CEO Maria Halasz said the benefit to the Australian health system could be enormous.
She said: “Social distancing is absolutely critical, as is learning from countries that managed the coronavirus infections well, such as Singapore and South Korea.
“These countries conducted widespread COVID-19 testing, isolated positives and provided early treatment. They not only controlled the spread of infection, they saved lives and medical resources.
“Our agreement allows for one of the fastest available COVID-19 tests to be made available for testing in Australia at scale.
“However, international demand for these tests is accelerating exponentially and to ensure ongoing supply over the next six months we need to act immediately.”