Incanthera PLC (AQSE:INC) has announced a major increase in orders for its Skin + CELL skincare range from Paris-based perfume house Marionnaud plus an institutional funding round to bring in £2.6 million to help pay for its launch.
Marionnaud, which is working with fellow CK Hutchison subsidiary and lifestyle retailer AS Watson on the launch, has doubled its order to 100,000 units having already raised its original order for Skin + CELL to 50,000 units from 25,000.
As a result, Incanthera revenues from the first production order will rise to £4 million from £2 million and revenues for the year to end 31 March 2025 will now exceed previous guidance of £10 million.
Discussions are also underway regarding the rollout of Skin + CELL into the AS Watson Group ahead of the previous timeline for the first quarter of 2025.
Marionnaud said it will launch in September 2024, avoiding the August shutdown caused by the European holiday season with the new units ordered to be ready for that launch.
Incanthera retains the right to enter into commercial deals with other organisations in all other global territories outside those exclusive to Marionnaud and AS Watson.
New funding
Stanford Capital, the company's broker, has teed up £2.6 million in new funding through a conditional subscription while also placing £1.5 million worth of shares held by major shareholder Immupharma.
Shares in the placing will be issued at 15p per share, a 21% discount to last Friday’s close, with the new shares representing 14.9% of the enlarged issued capital.
Incanthera had previously stated it would not issue more equity ahead of Skin + CELL's launch. However, due to increased orders from Marionnaud and demand for shares from institutions, it is raising the money to fund the additional units to be produced.