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Cellmid receives further boost to cash balance with R&D tax credit

The tax credit relates to research and development expenditure incurred by the company in relation to its midkine and FGF5 inhibitor programs.

Cellmid Limited - Cellmid receives further boost to cash balance with R&D tax credit
The company is well-funded to pursue its revenue growth strategies in China

Cellmid Ltd (ASX:CDY) has boosted its cash balance after receiving $645,748 from the Australian Taxation Office under the Research and Development Tax Incentive Scheme for the 2020 financial year.

The tax credit relates to research and development expenditure incurred by the company in relation to its midkine and FGF5 inhibitor programs.

Renounceable rights issue

The tax credit will boost the company’s cash balance off the back of its recent renounceable rights issue of up to $3.8 million to fund Chinese distribution agreements for consumer health products.

Upon completion, the company will be well-funded with about $7.95 million in cash, which will be used to increase sales of its consumer health products into China under its distribution agreements, broaden the product portfolio, and increase digital marketing activities with the view to grow subscriber numbers.

It will also allow the company to pursue other markets for its anti-ageing consumer products.

Growing distribution agreements

Cellmid’s anti-ageing haircare brands are being sold in Australia, Japan, the US, China, Germany and the UK under the brands evolis®, Jo-Ju® and Lexilis®.

In addition to pursuing revenue growth from its existing markets, the company’s key objective is to achieve operational profitability for the full 2022 financial year by building a substantial direct-to-consumer business (e-commerce) and from growing revenue in China through existing distributors and new partnerships.

Initial orders have recently been shipped under the distribution agreements with Chinese distributors Ourui Health Management Limited and Aeon International.

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Cellmid expects to see strong revenue growth out of China ahead of...

Cellmid Ltd’s (ASX:CDY) Maria Halasz speaks to Proactive's Andrew Scott following the news it's received the first order from Ourui Health Management Limited (OHM) for the sale of its Japanese, Ju-Ju® and Lexilis® branded, anti-ageing hair and skincare products in China. The first order of...

on 27/1/21

2 min read