Cellmid Ltd (ASX:CDY) directors have demonstrated their confidence in the company’s health and beauty-tech strategy by participating in the company's recent $3.8 million rights issue.
Chairman Bruce Gordon acquired 104,000 fully paid indirect shares at 7.5 cents per share on April 1 in an indirect interest, increasing the number of securities held to 364,000.
Chief executive officer and MD Maria Halasz purchased more than 1.427 million shares in direct and indirect interests on that date, increasing the total number of shares held in the direct interest to 588,000 and in an indirect interest to more than 4.049 million.
Non-executive director Dr Martin Cross acquired 130,000 shares in an indirect interest, increasing the number of securities held in that interest to 455,000 shares.
Non-executive director Dennis Eck purchased more than 5.18 million shares in a direct interest, increasing the total number of securities held in that interest to more than 18.14 million.
These shares were Issued in line with Eck’s sub-underwriting agreement on the rights issue.
Further boost to cash balance
On March 25 Cellmid boosted its cash balance after receiving $645,748 from the Australian Taxation Office under the Research and Development Tax Incentive Scheme for the 2020 financial year.
The tax credit relates to research and development expenditure incurred by the company in relation to its midkine and FGF5 inhibitor programs
This further boosts the company’s cash balance off the back of its renounceable rights issue of up to $3.8 million to fund Chinese distribution agreements for consumer health products.
Upon completion, the company will be well-funded with about $7.95 million in cash, which will be used to increase sales of its consumer health products into China under its distribution agreements, broaden the product portfolio, and increase digital marketing activities with the view to grow subscriber numbers.
It will also allow the company to pursue other markets for its anti-ageing consumer products.