Cellmid 2018 Annual Report 53

21. CASH FLOW INFORMATION

22. EVENTS AFTER THE REPORTING PERIOD

On 31 July 2018 the Group completed a private placement of shares to sophisticated and institutional investors and received

ﬁrm, irrevocable commitments for $9 million equity funding (before costs of 5%). Costs of the offer included the issuing of

1,000,000 options to the lead manager, Blue Ocean Equities, at a nil issue price, an exercise price of $0.80 and a term of 3

years. Approximately $7.2 million of this funding was subject to shareholders’ approval. The Group held a general meeting of

the shareholders on 7 September 2018 where the issuing of the shares pursuant to the placement was approved.

On 31 July 2018 the Group announced a Share Purchase Plan (SPP) to the amount of $1 million. The Share Purchase Plan

closed on 30 August 2018 raising $1,025,000.

23. RELATED PARTY TRANSACTIONS

(a) The Group’s main related parties are as follows:

Parent entities

Cellmid Limited is the ultimate parent entity.

Subsidiaries

For details of disclosures relating to subsidiaries, refer to Note 25. Transactions and balances between subsidiaries and the

parent have been eliminated on consolidation of the Group.

Key management personnel

For details of disclosures relating to key management personnel, refer to the remuneration report contained within the

Directors’ report and Note 6.

Transactions with related parties

The remuneration for Ms Halasz has been restructured to reﬂect the management costs incurred by each wholly owned

subsidiary of the Consolidated Entity. As a result, Direct Capital Group Pty Ltd, a related party to Ms Halasz, was paid $188,538

(2017: $188,538) for management services. No amount was outstanding as at 30 June 2018 (30 June 2017: Nil). In addition

to the above Ms Halasz was paid $155,077 (2017: Nil) through DCG in accumulated leave entitlements during the year. This

amount was disclosed as remuneration in previous years’ annual reports.

2018 2017

(Restated)

$ $

Reconciliation of loss after income tax to net cash used in operating activities

Loss after income tax for the year (3,732,615) (4,482,273)

Adjustments for:

- depreciation and amortisation 187,538 168,523

- share-based payments 111,490 16,107

- bad and doubtful debts - 8,485

- interest expense 115,293 231,997

- interest income - (76,952)

- foreign exchange movements (16,972) -

Changes in operating assets and liabilities

- (increase) in trade and other receivables (653,062) (79,945)

- (increase) / decrease in prepayments (229,169) 26,590

- (increase) in inventories (101,408) (69,531)

- increase / (decrease) in trade and other payables (73,926) 179,225

- increase / (decrease) in provisions (128,803) 17,255

Net cash used in operating activities (4,521,634) (4,060,519)