Ann: EGM Presentation by CEO, page-5

There were only a handful of share holders (4-6) by my estimate.  Attending from the company  were Maria , Graham Robertson, Dominic Burg, Bruce Gordon, Dennis Eck, Fintan by Skype and Martin Cross Dial Inn.   Dr King was sent his apologies.

Themeeting was intended to ratify the votes and hence was not specifically intendedas a general Q&A forum however everybody was more than forthcoming toanswer questions.

 

Why Cellmid

 

Dennis is looking for opportunities that interfaces the beauty market, technology application and distribution, natural products, company maturity and geographical positioning.  Cellmid is in the right place with the right management team that encapsulates all these qualities. Dennis had known Maria from a few years back and was very impressed by her commitment, drive and company development accomplishments.  He also recognised that the Mk business had huge potential however he is no scientist ( his description) despite an interest in the field.

Dennis demonstrated he has a clear view of the current, past and future landscape of American retail which is demanding an experiential beauty products delivered in-store professionals. This is against a background landscape of on-line shopping led by Amazon. Dennis noted that the Luxury brands such as Nieman Marcus and Bloomingdales are looking to backfill their instore presence with products such as those developed by Cellmid

 

Bloomingdales have provided a purpose built Advandgen/Evolis display area and will allow Cellmid to have unlimited experiential demonstrations. I gathered he was much more interested in Advandgen for obvious reasons.   Interesting to note that ULTA beauty was close to bankruptcy at approx. $1 per share which, with Dennis’s input, it is now trading a little under $300 so my sense is that our new Director will provide huge experience and leverage into the US Market. Naturally there were no SP projections for Cellmid which would not be expected.

 

Dennis commented that there are many large companies looking for cutting edge or new trends in beauty and expected CDY to be on the radar of large luxury brands.  The Key was to get to a scale that was attractive to suitors.  I got the sense this will definitely happen following the raise which will give Cellmid the resources to rapidly advance sales in current markets. A key comment was the footprint that Cellmid has developed in Asia was far in advance of some much larger US companies which I sensed was also a key reason for Dennis’s attraction to the company. A spin off for Advandgen was an objective down the track however market scale and sales were the immediate goal.  Europe is a future objective however current markets need to be established first. Europe’s regulatory environment is also challenging.

 

China

 

Dominic Berne is assisting Fukangren in China to expedite licensing.   I got the sense that this opportunity was the elephant in the room not withstanding the afore mentioned US market. Maria explained that a huge market is “youth” in China with many sub-30 Chinese expressing concern on hair loss. I think the presentation statistics would suggest that also.

 

 Fillerina

 

Fillerina stock arrives in country this Monday and will be distributed to the 900 or so quality chemist outlets that have worked well with Evolis and pro-actively want to put new and innovative products on their shelves as well as promote the products through trained staff.  The current channel will provide a cost effective product distribution leveraging of the existing Evolis channel.  New geographical areas are a possibility in the future however a base in Australia demonstrating product sales is needed in the first instance.  There are no immediate plans (stated) to push Fillerina in to Japan which Maria concurred was not currently distributed there.

Midkine

a great deal of activity in the background however due to confidentiality requirements public releases are minimised. Discussions with staff were very encouraging for the future of the company however no specific commentary that was not on the public record was disclosed as is expected. 

Overall very happy with the EGM outcomes and the companies strategy progress and i would recommend the AGM in  a few months for anyone who is interested in getting to know the team. 

The market will catch on soon enough.