Singapore: Australia-based Cellmid plans to acquire Japanese firm Advangen that owns the FGF-5 inhibitor hair growth technology. Cellmid markets évolis hair product range, which was originally derived from this technology, outside of Japan on behalf of Advangen.

Under the terms of the agreement Cellmid will acquire 100 percent of the shares of Advangen in a deal involving the payment of $1.2 million in cash and the issuing of 55,737,624 shares at a nominal issue price of five cents each. All of the shares will be subject to voluntary escrow agreements for up to 12 months.

The deal gives Cellmid full ownership of the FGF-5 inhibitor technology platform, which underpins the company's existing successful évolis hair product range and is the basis of other Advangen brands generating solid revenues in Japan. The acquisition also has important strategic benefits for Cellmid, which will gain immediate access to the established Japanese hair growth market. New market opportunities will also be pursued including China where import permits are already in place for the Lexilis and Jo-Ju branded products.

One of the institutional investors participating in the deal is the Tokyo-based venture capitalist, Biotech Healthcare. Director of the firm, Dr Takeo Matsumoto, welcomed the deal and said, "We have been very impressed by Cellmid's progress with évolis on the Australian market and are happy to be invested in Cellmid shares."

Cellmid CEO, Ms Maria Halasz, commented that, "This is a game 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."