- Cellmid’s subsidiary, Advangen International has entered an agreement with the Australian Shopping Network, to sell its anti-ageing hair care products on TV
- The products are expected to be sold from the last week of October 2019
- Television shopping is currently the most significant revenue source for Cellmid with sales from QVC Japan representing almost 30 per cent of total consumer health revenues
- Shares are steady, trading for 22.5 cents apiece
Advangen International, has entered an agreement with Australian Shopping Network (ASN) for the sale of its anti-ageing hair care products on TV.
The products are expected to be sold on open shop from the last week of October 2019 with offers exclusive to ASN.
ASN’s shop will be available 24/7 and is the end result of an agreement between ASN and Channel 7.
Advangen’s évolis Profession anti-ageing hair care products will be the only anti-ageing hair brand available on the channel.
Television shopping is currently the most significant revenue source for Cellmid with sales from QVC Japan representing almost 30 per cent of total consumer health revenues.
Since beginning sales on TV shopping channel QVC four years ago, Cellmid’s FGF5 inhibitor products have become best sellers with two ‘million dollar’ sales days annually.
Its most recent show on QVC Japan delivered a record $1.14 million in wholesale revenue and products have already been ordered by QVC for the next ‘special value’ event on November 24.
TV is an ideal way to sell the évolis products as it allows for a detailed explanation of Cellmid’s FGF5 technology and the long-term results can be represented visually.
TV shopping is also a cost-effective channel as airtime is not charged and there are no additional marketing costs, rebates or discounts payable to the channel.
Cellmid also announced today a $1.5 million share placement to sophisticated and institutional investors.
A total of 7.5 million shares will be issued at a price of 20 cents each to raise the funds.
However, 41 per cent of these shares will be issued to Cellmid’s Directors Dennis Eck and Maria Halasz, subject to shareholder approval.
The money raised will be used to fund the growth of the business and working capital for the newly signed distribution agreements for évolis in China and Germany.
“The funding will allow us to fulfil the increasing demand for our product internationally,” Maria said.
“We remain confident that our consumer health division is on track to achieve operational profitability in FY2020, as we prepare to deliver value from our midline assets through partnerships,” she added.
Cellmid’s share price is steady, with shares trading for 22.5 cents apiece at 3:33 pm AEDT.