Cellmid Limited is set to acquire hair growth company Advangen Inc., Japan, which owns the FGF-5 inihibitor hair growth technology.
Cellmid will acquire 100% of the shares of Advangen in a deal involving the payment of ¥120m or AU$1.2m in cash and the issuing of 55,737,624 shares at a nominal issue price of 5 cents each. The deal enables Cellmid full ownership of the FGF-5 inhibitor technology platform, which underpins the company’s existing évolis hair product range and is the basis of other Advangen brands generating solid revenues in Japan. As a result of the acquisition, Cellmid will gain immediate access to the established Japanese hair growth market.
Cellmid CEO Maria Halasz said: “This is a company changing deal. Our objective is to establish Cellmid as a global leader in scientifically and clinically validated hair growth technology. We plan on generating substantial revenues in the next three to five years.”
It is expected that the settlement of the transaction may take up to two weeks.