Skin Elements calls it quits on Chinese export deal
Health & Biotech
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Australian beautician Skin Elements has abandoned a deal to export its organic skincare range to China.
Skin Elements (ASX:SKN) announced a potential joint venture with Ageless Products in October, but this week told shareholders it would no longer go ahead.
Investors didn’t seem to mind, pushing the shares up 6 per cent to 17c on Wednesday morning.
The Perth-based company’s main products are an organic sunscreen sold under the Soleo Organics brand and pawpaw-based skincare and Elizabeth Jane branded cosmetics.
“Skin Elements is committed to expanding its sales and distribution footprint in China and other key target global markets, and will continue to update the market on its material progress in due course,” the company told investors on Tuesday night.
A 50-50 joint venture with Ageless was initially described as a significant milestone for the company, key in expanding their product overseas, especially their Elizabeth Jane range.
Skin Elements has a market cap of $4 million. The shares have traded between 10c and 22c in the past year.
First large-scale production of 10,000 tubes of Soleo sunscreen was delivered in June, with a further 40,000 to follow.
Skin Elements listed in January this year, raising $3.7 million at an issue price of 20c.
The company made $128,000 in sales in the September quarter and had $1.1 million in the bank at the end of the period.