Cellmid Limited (ASX: CDY) has made a transformative acquisition of Advangen Inc., Japan, the company that owns the FGF-5 inhibitor hair growth technology.
Currently, Cellmid licenses the technology for re-sale through retail outlets in Australia as évolis®.
Cellmid will acquire 100% of Advangen Inc shares from the current owners, Japanese institutional investors Biotech Healthcare for $1.2 million cash and 55 million Cellmid shares to be issued at $0.05 per share.
The shares will be escrowed for up to 12 months. It is expected that the settlement of the transaction will be completed within two weeks.
The deal is likely to significantly increase Cellmid’s revenues in the short to medium term as Cellmid will gain immediate access to the established Japanese hair growth market.
In addition, profit margins will improve as there will no longer be royalties payable. In addition, savings are expected on raw material costs of the active ingredients
