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Cellmid, the anti-baldness company loses court case against its former marketing agency which has forced the company to spend nearly $1 million. Cellmid (ASX:CDY) is developing cancer and heart disease treatments and makes hair growth tonics. Its hair products are stocked by US department stores Neiman Marcus and Bloomingdales.
The company continue to extract value from midkine drug development and patent portfolio and the recent preclinical results add value creation opportunities.
According to Mumbrella, centered around Ikon Communications seeking payment from Cellmid for its services the court case was heard in the NSW Supreme Court. Also, Cellmid counter-sued as reported by Mumbrella, with its subsidiary Advangen accusing Ikon Communications of creating a 2015 marketing campaign that generated no sales.Â
Advangenâs counter-claim be thrown out and the court ruled Ikon was entitled to its claim of $939,055.65 plus interest. The company said in a statement, Cellmid maintains its position that Ikon failed to provide the services agreed in the contract in the boardâs view, caused the failure of the campaign and is disappointed with the courtâs decision.
Cellmid is at a vastly different stage of maturity and this dispute occurred in 2015. Cellmid to fully focus on its plans will be allowed by the conclusion of this matter. For the unfavorable decision the company says it had already budgeted and made âan allowance and in its 2018 financial accounts noted it is a contingent liabilityâ.
The company takes pride them in forming mutually respectful relationships with their clients, as an agency. We are pleased that this matter has been resolved appropriately. Producing best-in-class work for their clients, the company says it will continue doing what they do best.
Cellmid shares were down 1.5 pc to 33.0c falling slightly today and is trading at a 52-week low. The stock has seen a performance change of -16.25% over the past 12 months. The market capitalization of the company is $27.97 million as at November 06, 2018.
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