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Cellmid Receives Full Acceptances For A$545,000 Option Placement

Cellmid (ASX:CDY) has received acceptances for the full A$545,000 it sought from its fully underwritten non-renounceable offer option offer after accepting oversubscription applications.

The offer of one option priced at $0.002 each for every two shares held had received acceptances for $322,000 of options before a decision by the Board to accept oversubscription applications brought the total raised to $545,000.

Cellmid has advised underwriter RM Corporate Finance that no shortfall is available for placement under this offer.

Each option can be exercised at $0.034 on or before 23 October 2016.

The raising adds to Cellmid's cash reserves, which stood at A$1.75 million as of 30 September 2012.

Strong sales

Cellmid also noted that sales of its over-the-counter évolis® topical hair growth products, which was launched in Australian pharmacies in late June this year, had generated revenue of $275,000, more than its internal expectations.

It received $99,000 of this amount for the quarter ended 30 September 2012 as the standard
trading terms for the pharmacy wholesale market are 60 days from the end of month. This means that depending on the date of order, payment can take up to 90 days to receive.

The company had through its controlled entity Advangen International Pty Ltd 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.

However, Cellmid noted there could be a time lag between the agreement to stock, development and implementation of planograms and ordering of the products.

It added that most pharmacies have only commenced stocking of the products recently and line-fill rates have not yet been established. It is likely that replenishment rates will not stabilise for 12-18 months as customer awareness of the products is expected to grow significantly during that period.

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