Cellmid (ASX:CDY) has raised $9 million before costs via a share placement to sophisticated and institutional investors.
The company said the placement will result in the issue of up to 23.7 million shares, implemented in two tranches, with the second tranche conditional on shareholder approval.
It will also launch a Share Purchase Plan (SPP) to raise up to an additional $1 million from existing eligible shareholders on the same terms as the placement.
The company said proceeds from the placement and SPP will primarily be used for working capital to support global distribution opportunities for its évolis products in key target markets including the USA, China, Australia and Japan.
“We are delighted to secure funding for the expansion of our consumer health business at this critical stage, when distribution channels are set up in major global markets such as China and the USA. The funding will allow us to turbo charge our growth plans and take the Company closer to profitability,” said chairman Dr David King.
The issue price of the placement is $0.38 per share. This represents a 17.8 percent discount to Cellmid’s 30-day VWAP as of the last day of trading in its shares, being 26 July 2018.