The Recent Achievements Could Not Impress The Investors Of OCC - Share Price Tumbled

  • Dec 11, 2018 AEDT
  • Team Kalkine
The Recent Achievements Could Not Impress The Investors Of OCC - Share Price Tumbled

Orthocell Limited (ASX: OCC) which is a Regenerative medicine company made two on 11 December 2018. One regarding the successful share placement where the company was able to generate $1.8 million and the second was the approval to use CelGro in key UK public dental hospital.

Finally, OCC was successful in raising around A$1.8 million through the oversubscribed placement of shares to the professional and sophisticated investors across Australia and Asia along with the existing shareholders. 

The raised funds along with the cash reserves will serve beneficial for the entry of CelGro into the European market. CelGro is beneficial for repairing dental bone and soft tissue repair. The company is working continuously in getting approval for CelGro in the US and its targeted jurisdiction. Also, these funds will be supporting in business development as well as the marketing initiatives of the company.

The placement of the shares will be in the form of fully paid ordinary shares. There will be 10,592,008 shares issued at A$0.17 per share along with a free option with the exercising price of A$0.25 and the expiry date of 31 December 2021.

Another big news for OCC is that NHS Dental hospital has given a green signal to use CelGro as it will boost the company’s revenue. Also, it will create the product awareness of CelGro amongst the common mass.

The company was also successful in stepping towards Birmingham Dental Hospital which is a public hospital and recognized as a top-tier teaching Dental Hospital in the UK. It provides training to more than 600 dental students at an undergraduate and postgraduate level which in turn, will result in increasing the customer base.

The company remained a consistent negative performer. Since inception, the performance of the company is -47.22%.  Since last year, the performance of the company is -50% and is still giving a negative return.

For the financial year, the company made a net loss of $5,757,114. The balance sheet of the company appears healthy. However, as a result of year on year increase in the accumulated loss of the company, a negative impression is created amongst the investors. There is a decrease in the total shareholder’s equity in this financial year as compared to the previous fiscal year. The total shareholder’s equity for FY2018 was $2,372,202.

There was a net cash outflow of $4,644,252 from the operating activities of the company. Here, the primary source of cash outflow was in the form of payment made to suppliers and employees.

There was a net cash outflow of $373,560 from the investing activities of the company. Here, the primary source of cash outflow was in the form of payment made for intangible assets.

There was a net cash inflow of $2,881,788 from the financing activities of the company. Here, the primary source of cash inflow was through the funds from share subscription.

There was a net decrease in cash and cash equivalent in FY2018. By the end of FY2018, the net cash available with the company was $2,910,233.

By the end of trading on 11 December 2018, the market price of the share was down by 10.526% to A$0.170 with the stock holding a market capitalization of $20.93 million.


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