Ann: Cellmid to Acquire BLC Cosmetics Pty Ltd, page-12

This from HGL's FY20... (my emphasis)

"...BLC Cosmetics imports and distributes high quality skincare products and devices to beauty salons, spas,
wellness centres and skincare clinics in the Australia Pacific region. BLC is a wholly owned subsidiary of HGL.
Notwithstanding closure of customer premises through COVID-19, BLC increased revenues by over 16% in the
year to $6.0 million. Thalgo continues to be the main brand for the business and has performed in line with
expectations. The company secured the rights to distribute the HydroPeptide cosmeceutical brand which was
relaunched by BLC in March. Growth will be challenged with the withdrawal of the agency for Alpha-H brand
during the first half of FY21. BLC continues to explore new distribution and brand opportunities to complement its
existing house of brands growth strategy.
Despite a small reduction in gross margins, due to a combination of foreign exchange and promotional activity,
FY20 saw BLC return to profitability during the year with a positive EBIT of $0.1 million improved from a $0.6
million loss in FY19, assisted by JobKeeper payments and leadership on this business unit

and this from HGL's HY21...

I'm no business valuation expert but, with a Net Asset Value of $100k (6 mths ago) and EBIT of $100k (incl artificial financial assistance) after a previous loss of $600k - I can see why a sale price with EBITDA multiple of 6 was accepted by HGL.

For CDY - I really hope spending $1 million and issuing another >32 million shares in order to "double revenue" turns out to be a master stroke by our leadership. Given the history on the way they have managed the "expenditure", I will be very interested to see whether they finally turn a taxable net profit - or will it just double the losses?

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