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Cellmid Launches Fully Underwritten Option Placement

Cellmid (ASX: CDY) has launched a fully underwritten non-renounceable offer of one option for every two shares held at A$0.002 each to raise just over $545,000 in funds for working capital.

Each option issued under the offer, which is fully underwritten by RM Corporate Finance, can be exercised at $0.034 on or before 23 October 2016.

The offer is scheduled to close on 19 October 2012.

Cellmid only launched its over-the-counter évolis® topical hair growth products in June this year and has already exceeded distribution targets by 75%.

The company, through its controlled entity Advangen International Pty Ltd, has now struck agreement with almost 700 Australian pharmacies to stock its scientifically validated évolis® hair growth product range - well above its projected target of 400 stockists by June 2013.

Stockists include some of the largest pharmacy banner groups such as Priceline, Terry White and regional groups like National Pharmacies and their respective online stores.

Revenues from the over-the-counter products are expected to contribute significantly to Cellmid's overheads by the end of the current financial year.

Earlier this month Cellmid appointed Frostbland Pty Ltd as the exclusive distributor of its évolis® hair growth product range to the pharmacy and drug store market in Australia and New Zealand.

The arrangement will allow Cellmid to maintain its focus on its midkine product development, with new products already planned in the pipeline.

Cellmid holds the most significant intellectual property portfolio related to midkine worldwide, fostering development of multiple product lines and commercialisation opportunities.

Midkine is a novel target for cancer diagnosis and for the treatment of inflammatory conditions and cancer.

Cellmid recently secured its fourth US patent allowance in the area of midkine biology.

The company's patent portfolio currently includes 75 patents in 20 patent families, covering use of midkine and anti-midkine agents for therapeutic purposes in a number of diseases, and the use of midkine as a diagnostic marker in cancer and other disorders.

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