Dear Shareholders, Before providing more colour on your...

Dear Shareholders,

Before providing more colour on your Company’s recent progress, I want to sincerely thank our existing and new shareholders who supported our recent capital raise.

This raise is a great outcome for Cellmid, our shareholders and our hard-working team. The additional $10.25 million places us in a much stronger position; we are now fully funded and can move ahead aggressively with our growth plans. This should enable our consumer health business to drive a significant increase in global sales and put the business on track to achieve profitability in FY2020.

Over the past three years, we have laid the foundation of a premium, global consumer health brand. We have expanded our distribution channels, particularly in the US. Our experiential, in-store marketing events highlighting the évolis® Professional anti-ageing hair care range are showing consumers our clear point of difference. These events have started to drive sales. We currently are launching in-store events across Neiman Marcus and Soft Surroundings in the US, as announced on 30 August 2018. We share the highlights of these events later in this update.

Some of you are aware that the three-year-long legal proceedings with Ikon culminated in a hearing during the past two weeks in the NSW Supreme Court. I’m pleased to report that the court proceedings are now at the end and we await the decision. To date, Cellmid has expensed all its legal costs associated with the Ikon legal proceedings, provisioned a potential liability and has fully disclosed all of this in the Company’s accounts. Finally, I was pleased to share promising data for our midkine antibody program this month, via our partnership with the Westmead Institute.

This takes us closer to submitting an orphan drug application and progressing towards clinical trials. Insights on this follow later in this newsletter.

With the first quarter of FY2019 almost done and with progress on so many fronts, I’m excited about the year ahead for Cellmid. It will mark a culmination of many years of hard work and a new stage in our journey, and I look forward to sharing it with you.


Best wishes, Maria Halasz CEO and Managing Director