SYDNEY, Friday, 26 July 2013: Cellmid Limited (ASX: CDY) provides the following comments in relation to the attached Appendix 4C form:
Advangen acquisition
During 4Q2013 the Company completed the acquisition of Advangen Inc., the Japanese owner of the FGF-5 hair growth technology platform, for a consideration of $1.2 million in cash and the issuing of 55.4 million CDY shares priced at 5 cents each (actual trading price was 2.8 cents at the time of the acquisition). Advangen Inc. (Japan) had a cash balance of $550,000 at the time of the acquisition and therefore the net equity investment is recorded as $3.4 million.
Fujikura Kasei payments
Cellmid received $352,000 during the period, of which $100,000 was paid by Fujikura Kasei. This was the second half of the consideration for the Option agreement to license the Company’s midkine cancer diagnostic assets for Japan. Subsequent to the end of 4Q2013 the Company received $433,000 from Fujikura Kasei as part of their election to exercise the Option to license Cellmid’s diagnostic technology. The total Option to License payment received from Fujikura stands at $633,000.
Consumer health division (Advangen)
During the reporting period Cellmid recorded receipts of $127,000 from its consumer health business. Of this amount $52,000 was received by the Australian operation, which is a 9% increase from the previous quarter. Consistent with the Company’s early expectations the total receipts of the Australian operation since the first sale of its évolis branded hair growth products is now $386,000. A total amount of $75,000 was received by the Japanese operation during the five week post-acquisition period (between 24 May and 30 June).
EMDG Grant
The Company received $115,000 in Export Market Development Grant during the quarter, which is included in the receipts.
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