Ann: Cellmid Share Placement Raises $9M, page-10

Applying an individual $15K limit on the SPP participation is not very tactful under the circumstances. Directors had no such limit under the placement, and as shareholders they are each entitled to a further discounted purchase through the SPP as well.

Placing total and individual limits on the SPP implies that component of the capital raising is not particularly necessary and that it is simply a sop to pacify retail shareholders not invited to participate in the placement. Even worse if the $15K limit becomes subject to scale back.

I would have preferred to see not only a much higher total limit for the SPP, but also it be accompanied by a statement that the monies raised will be used to accelerate movement of the midkine programs into the clinic, rather than they just act as additional support for the healthcare business. A lost opportunity as I see it.

Having said that, I am all for directors putting their money into a company via a CR rather than buying on-market. The latter is simply a cash transfer between market participants, whereas with the former their monies at least can serve to benefit all holders.

Still, $10M invested into product inventory at 70% gross margin translates into $33M in sales revenue, which makes a market cap of only $24M look pretty stupid. The current FY2019 should be a breakout year. For the healthcare business at least.