- Australia-based skin care company Skin Elements submitted TGA Registration for Invisi Shield® as a hospital-grade disinfectant.
- Skin Elements entered into natural nail polish business with the acquisition of BeachToes.
- The Company has signed a distribution agreement with West Coast Naturals.
- Appointment of Non-Executive Director to assist SKN in developing its corporate strategy and governance.
- At the end of December 2020 quarter, the Company had ~A$861K cash on hand.
Australia-owned natural skin care company Skin Elements Limited (ASX:SKN) announced its Quarterly Activity Report for the period ending 31 December 2020.
A quick snippet of Skin Elements’ quarterly activities:
TGA Registration Submission for Invisi Shield as Hospital Grade Disinfectant
Since the launch Invisi Shield® Organics, SKN has focused on the ongoing process of development for the Company’s SE FormulaTM. The Company also concentrated on sourcing various ingredients from multiple national and global suppliers.
SKN is also examining the usage of SE FormulaTM in several applications for Invisi Shield® Organics as a sanitiser as well as a disinfectant.
Source: SKN AGM Presentation (29 January 2021)
Notably, SKN has submitted an application for TGA registration of the new formula Invisi Shield® Organics as a hospital-grade disinfectant.
After the registration, the Company can make a more specific product. Besides, SKN can also prepare label claims regarding Invisi Shield®, which has the potential to open substantial new commercial opportunities.
Skin Elements enters Natural Nail Polish Business
Skin Elements entered the natural nail polish space with the acquisition of up to a 40% equity stake in Sambora, the owner of BeachToes. The Company believes that the natural nail polish business complements its existing organic and natural skincare product range.
Collaboration with West Coast Naturals to expand its presence
Skin Elements has signed a distribution agreement with West Coast Naturals, an e-commerce company based in Western Australia.
Notably, the Company is confident that the collaboration entails online marketing and sales of its SE Formula range of all organic beauty and health care products.
With the collaboration, the Company can sell its Natural Skincare product range across the Australian as well as Asian markets.
SKN relocates to new Head Office at 1242 Hay Street West Perth
Skin Elements relocated to a new Head Office. The new address is 1242 Hay Street, West Perth, WA. The new premises offer sufficient space for SKN’s corporate, product development, as well as sales & marketing operations with a retail shop front.
Appointment of Non-Executive Director
In the December 2020 quarter, Skin Element appointed John Poulsen as a Non-Executive Director to its Board. The Company is confident that Mr Poulsen’s vast experience and skills will help SKN develop its corporate strategy and governance in its transitions from R&D to commercial operations.
Skin Elements Options Exercised
During the December quarter, Skin Elements received A$1.337 million in cash through the exercise of 28.275 million unlisted and 4.883 million listed options.
Highlights from the Cashflow front
While Skin Elements continued its operations during the December 2020 quarter, the impact of COVID-19-induced restrictions led to the interruption in orders from national and international distributors. As a result, the Company experienced reduced ability to meet new customers and distributors, increased costs and shipment timeframes for national and global shipping, and delayed production and inventory distribution.
With the additional net cash received from equity placement, options conversions, and borrowings, the Company had ~A$8.61 million cash on hand at the end of the quarter.
During the quarter, Skin Elements finished 9,675 units of its Soléo Organics Face Formula Sunscreen. SKN also noted the following:
SKN’s Medium-Term Development Strategy
Skin Elements has retained its focus on balance sheet management and continues to review cost structures and working capital requirements. With this, the Company ensures an appropriate level of capital is available to support the increased manufacturing demand for its natural skincare product range necessary to fulfil growing sales.
Skin Elements is evaluating equity and debt proposals to make sure the Company has the necessary working capital to support production growth. Besides, the Company will obtain shareholder and any other regulatory approvals after finalising the details.
Mr Peter Malone Executive Chairman Skin Elements commented:
On 9 February 2021, SKN shares last traded at A$0.100.