Cellmid's $3m capital raise

Company News

Cellmid (ASX:CDY) has received commitments totalling $3 million for new fully paid shares in the company at $0.03 cents per Placement Share.

According to the company, the placement was supported by new institutional and sophisticated investors as well as existing shareholders.

It said it will use the funds to launch the evolis FGF5 inhibitor hair growth products in the US.

"In July 2016 Cellmid’s wholly owned subsidiary, Advangen Limited, signed a distribution partnership with Colour Collective, a Dallas based group specialising in hair product launches in the US," said the company.

"The partnership provides access to a number of distribution channels, facilities and marketing experts for the launch of the evolis products. Together with the $1.2 million raised through the exercise of options in October 2016, the Placement will allow the company to invest into the launch of the evolis products in the USA, including product manufacture, digital and social media, salons and high end retail distribution."

The issue price for the Placement Shares represents a 14 per cent discount to the last closing price of the company’s shares prior to the placement on 25 October 2016.

The placement was available to investors in Australia who qualified as professional or sophisticated investors under the requirements of the Corporations Act 2001 (Cth) and sophisticated and professional investors in select other jurisdictions.

The Placement Shares are expected to be issued between Wednesday 3 November and Monday 7 November.