03 June 2024
Incanthera
plc
("Incanthera" the
"Company")
Skin + CELL First Production
Order Doubled Again
Institutional Investor-led
Subscription and Sale Shares Totalling £4.1
million
Posting of Circular of
General Meeting
Incanthera plc (AQSE:INC),
the company focused on innovative
technologies in dermatology and oncology provides a further update on the launch of Skin + CELL with
Marionnaud Switzerland and Austria ("Marionnaud"),
managed by the world's largest health, beauty and
lifestyle retailer, A.S. Watson Group ("AS Watson") and to announce
an Institutional Investor-led subscription and sale of
shares.
On 18 December 2023,
Incanthera announced a commercial skincare
deal with Marionnaud for the launch and distribution of
Skin + CELL, Incanthera's luxury skincare brand
range, utilising
our ground-breaking formulation and delivery expertise, to bring
scientifically proven formulations to cosmetics.
On 25 March 2024, Incanthera advised
that, following ongoing discussions with Marionnaud, the Company's
first production order of 25,000 units would double to 50,000 units
to satisfy Marionnaud's anticipated launch demand for Switzerland
and Austria expected in Q2 2024, generating revenue for the Company
of approximately £2 million. Furthermore, it was indicated that the
second order would be significantly larger, at an estimated 250,000
units, to fulfil the European launch demand and the start of the
planned Asian roll out in Q1 2025. The second order would include
an extension of the product range from four to five products and
would generate projected revenues for the Company in the region of
£10 million, leading to full year profitability.
Following recent meetings in
Switzerland with Marionnaud and A.S. Watson, Incanthera is pleased
to provide the following update:
· The first
production order has been doubled again from 50,000 units to
100,000 units. Subsequent production orders will be larger and
continue to increase in line with the European rollout.
· Revenues from the first production order to increase from
c.£2million to c.£4 million.
· Revenues for the current financial year (ending 31 March 2025)
to exceed the previous guidance of £10 million.
·
Discussions underway with A.S. Watson regarding
the rollout of Skin + CELL into the A. S. Watson Group ahead of the
previous guidance of Q1 2025.
·
Marionnaud's preferred launch date agreed for
September 2024, avoiding the August shutdown caused by the European
holiday seasons.
·
The additional 50,000 units are being manufactured
and on track for delivery to Marionnaud in time for the September
launch.
The Company is delighted in the
continued confidence expressed by Marionnaud for
Skin + CELL's strong science-based skincare and
with the anticipated higher demand from Marionnaud's customer base that has
led to the first production order doubling again to 100,000 units.
Incanthera retains the right to
enter into commercial deals with other organisations in all other
global territories outside those in which Marionnaud and AS Watson
will have geographical exclusivity to Skin + CELL.
Subscription, Sale Shares and Admission
Additionally, the Company is pleased
to announce, following demand-led discussions with a number of
institutional investors, that Stanford Capital Partners, the
Company's broker, has placed a total of £4.1 million by way of a
conditional subscription for £2.6 million ("Subscription") and a
placing of existing shares ("Sale Shares") to new and existing
institutional shareholders for £1.5 million. The Subscription
and Sale Shares have been conducted at a price of 15p per share, a
discount of 21 per cent. to the mid-price at close of trading on
Friday, 31 May 2024 of 19p, with the Subscription comprising the
issue of 17,403,681 new ordinary shares ("Subscription Shares")
representing 14.9 per cent. of the enlarged issued capital. The
Subscription is conditional on shareholders approving the grant of
sufficient new share authorities at a general meeting.
Accordingly, the Company has today posted to all shareholders a
circular ("Circular"), notice of general meeting ("General
Meeting") and form of proxy.
As a result of the requirement for
the General Meeting, the Sale Shares will occur shortly and
admission of the Subscription Shares to trading on the AQSE Growth
Market ("Admission") will be subject to the passing of the
resolutions at the General Meeting. Admission of the Subscription
Shares, which will rank pari passu with the existing
ordinary shares is anticipated to occur at 8.00 a.m. on or around
21 June 2024.
The Company had previously stated
that it was not its intention to raise additional equity finance as
the first production order of 50,000 units was fully funded, with
future growth to be financed through a mixture of revenues and
trade finance facilities. However, as a result of the
Institutional Investor-led demand and, in discussions with
Marionnaud, the proceeds of the Subscription will be used to fund
the increased production schedule.
Additionally, the Company has
granted warrants to advisers to subscribe for 945,189 new ordinary
shares at a price of 15 pence per share for a period of 10
years.
General Meeting
The General Meeting has been
convened for 20 June 2024 to be held at the offices of Gateley plc,
98 King Street, Manchester M2 4WU at 11:00 a.m.
A copy of the Circular, which has
today been posted to all shareholder, will shortly be available on
the Company's website at www.incanthera.com.
The Directors consider the
Subscription and the conferring of additional shareholder authority
to be in the best interests of the Company and the shareholders as
a whole and, accordingly, unanimously recommend that shareholders
vote in favour of the resolutions as they intend to do in respect
of their own beneficial holdings amounting, in aggregate, to
6,995,845 existing ordinary shares, representing approximately 7.1
per cent. of the issued share capital of the Company.
In addition, the Directors have
received irrevocable undertakings to vote in favour of the
resolutions from certain shareholders in respect of a further
42,752,505 ordinary shares, representing approximately 43.1 per
cent. of the issued share capital of the Company.
Commenting on the update and Subscription:
Tim
McCarthy, Chairman of Incanthera plc
"We are delighted to be able to update the market today with
such a positive step forward, less than three months after the
previous commercial update in March.
The confidence shown by both Marionnaud and A.S Watson in our
unique Skin + CELL product range is evidenced by a further increase
in our first production order for the launch in Europe and the
current discussions concerning the launch and a wider cooperation
in Asia.
I
am also delighted to be able to welcome a number of new
institutional investors onto our share register and together with
existing institutional shareholders, their direct financial support
is facilitating our enhanced growth plans, which in turn is
increasing our expected revenues and profitability thereby driving
further investment returns for all our shareholders. I thank them
for their support.
We
look forward to continuing updating the market further as we
prepare for the launch of Skin + CELL".
Dr
Simon Ward, Chief Executive of Incanthera plc
"The relationship between Incanthera and Marionnaud continues
to go from strength to strength, with shared excitement for the
European launch.
With our products in manufacture for the first store debuts in
Europe, the momentum is gathering and being recognised by the City
and investors. This additional funding allows us to invest in our
capacity for the roll out of Skin + CELL and to meet the enthusiasm
from Marionnaud for product capacity and timescale. This is a
strong position to be in, and to be able to deliver to the
market."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
2018).
For further information please
contact:
Notes to Editors
About Incanthera plc
Incanthera is a specialist company
focused on innovative technologies in dermatology and
oncology. It seeks to identify and develop innovative solutions to
current clinical, commercially relevant unmet needs, utilising new
technology from leading specialists and academic institutions as
well as its in-house development team.
The Company originated from
the Institute of Cancer Therapeutics ("ICT") at
the University of Bradford. Incanthera's strategy
is to develop each candidate in its portfolio from initial
acquisition or discovery to securing its future through
commercially valuable partnerships at the earliest opportunity in
its development pathway.
For more information on the Company
please visit: www.incanthera.com.
@incantheraplc
About Skin + CELL
Skin + CELL is Incanthera's luxury
skincare brand utilising our ground-breaking formulation and
delivery expertise, to bring scientifically proven formulations to
cosmetics. Skin + CELL's unique formulations, enriched with
targeted bioactive B3 (an activated form of niacinamide) are
delivered directly into the skin's cells to optimise and protect
cellular health, energy and protective capabilities.
Incanthera's skincare technology
harnesses unique delivery pathways through recently patented
formulations designed by our in-house experts who have previously
formulated skincare for some of the world's leading skincare and
pharmaceutical companies. These formulations fortify otherwise
depleted physiological pathways to improve the skin's performance,
ability to self-repair and to address previously unmet cosmetic
conditions in skin health.
•
Skin + CELL's unique formulations, currently
enriched with targeted bioactive B3 (an activated form of
niacinamide) but anticipating further bioactive ingredient
formulations are delivered directly into the skin's cells to
optimise cellular health, energy and protective
capabilities.
•
Independent studies have shown Incanthera's
technology is uniquely effective in delivering Bioactive B3 into
the skin, energising the living cells of the skin to maintain
natural health and protection against adverse environmental
challenges and maintaining even skin tones.
•
Skin + CELL's complementary range of products are
based on advanced, clinically designed, formulation concentrates
which combine leading edge pharmaceutical enhancement technology
with selected prestige cosmetic ingredients to give an effective
product which gives a silky emollience in use and leaves the skin
visibly radiant, energised and protected.
Skin + CELL's luxury skincare
current range extends across face, body, hand, face serum and eye
cream, and will also include SPF concentrations and further
bioactive derivatives of vitamins in the future.
About Marionnaud
Marionnaud is the largest luxury
perfumery and cosmetics chain in Europe with over 1,220 stores and
a 27% market share in France. Marionnaud is managed by the
A.S. Watson Group based in Hong Kong, the world's largest
international health and beauty retailer.
https://www.marionnaud.com
About A.S. Watson
The A.S. Watson Group is the
world's largest international health and beauty retailer, with
16,100 stores in 28 markets, primarily in Asia and Europe. A
member of CK Hutchison Holdings, A.S. Watson operates the world's
largest portfolio of retail formats, retail brands and has the
largest geographical presence including a significant online retail
presence.
http://www.aswatson.com/
https://youtu.be/IZ6TolZi4Go
Forward looking statement disclaimer
Certain statements made in this
announcement are forward-looking statements. These forward-looking
statements are not historical facts but rather are based on the
Company's current expectations, estimates, and projections about
its industry; its beliefs; and assumptions. Words such as
'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,'
'estimates,' and similar expressions are intended to identify
forward-looking statements. These statements are not guarantees of
future performance and are subject to known and unknown risks,
uncertainties, and other factors, some of which are beyond the
Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in
the forward-looking statements. The Company cautions shareholders
and prospective shareholder holders not to place undue reliance on
these forward-looking statements, which reflect the view of the
Company only as of the date of this announcement. The
forward-looking statements made in this announcement relate only to
events as of the date on which the statements are made. The Company
will not undertake any obligation to release publicly any revisions
or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of
this announcement except as required by law or by any appropriate
regulatory authority.