Cellmid Ltd’s (ASX:CDY) renounceable rights issue has raised $3,816,369, with strong support from existing shareholders and new institutional and professional investors.
Lead manager and underwriter Mahe Capital Pty Ltd received bids from institutional and professional investors in excess of the available shortfall.
To accommodate a portion of the excess demand, the company has agreed to undertake a placement on the same terms as the rights issue, to raise an additional $700,000 as a follow-on.
Transformational path
Cellmid chief executive officer Maria Halasz said “We would like to thank our shareholders for the strong support they have shown us during this rights issue, demonstrating their continued commitment to the company and enthusiasm for our future as we embark on this transformational path to achieve strong growth and eventual profitability.”
Follow-on placement
Together with the follow-on placement, the company will raise a total of $4,516,369 before costs.
Cellmid will issue a total of 60,218,257 new fully paid ordinary shares and 30,109,084 new options exercisable at $0.18, with an expiry date of April 1, 2023.
The options will be quoted under the ASX code CDYOA.
Under the follow-on placement, the company will issue 9,333,336 new shares and 4,666,623 options.
These will be issued without shareholder approval using the company’s existing capacity under Listing Rule 7.1.
The new securities are expected to be issued on April 1, 2021.
Use of proceeds
Proceeds from the rights issue and the follow-on placement will go towards:
- Expanding digital marketing activities, engagement of influencers and increasing performance marketing with the view to increase sales and gain additional subscribers to the company’s products;
- Assisting with the cash flow requirements of the recently signed Chinese distribution agreements;
- Carrying out new product development initiatives; and
- General working capital and to cover costs associated with the offers.