Cellmid Ltd. [ASX:CDY], an Australian based biotechnology company, went into a trading halt on 20 March 2020 after falling to a close price the previous day of $0.09. The trading halt was at the request of Cellmid, pending it releasing an announcement.
Sitting within the microcap sector with a market cap of just $9.56 million, Cellmid had experienced a drop in share price since May 2018, falling from $0.57 to find support at $0.16. This was until the coronavirus gripped the world and the Cellmid share price entered free fall as investors aggressively de-risked.
What did Cellmid announce?
Friday was a busy day for Cellmid with three announcements being made that are impacting its future. First was the announcement of a supply agreement being made for a COVID-19 rapid diagnostic test. The test is available immediately and is suitable as a bedside test can be used in hospitals, nursing homes, schools, etc. according to the company.
Given the current climate around the world this is important for Cellmid. Further announcements were made with a market update on COVID-19 and notice to lift the trading halt.
Cellmid trading halt ends and its share price goes flying
Cellmid is back in action now, and has jumped a staggering 177% at the time of writing up to $0.27. The new agreements in place appear to have given investors reasons for renewed confidence.
With the Cellmid price now rocketing up on the new announcements, how high can it go? Cellmid has historical resistance levels at $0.32 and $0.36 but if it pushed through these, the next historical level is $0.46, can Cellmid get up there?
More updates from the company will provide some clarity.
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For Money Morning