Total
0
Shares
Medlab (ASX:MDC)- CEO, Sean Hall
CEO, Sean Hall
Source: Medlab
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Medlab Clinical (MDC) completes the divestment of its Australian Nutraceuticals business to PharmaCare
  • The transaction for the Medlab branded nutraceutical lines will involve $2.2 million in cash from PharmaCare, in return for the transfer of specific Medlab intellectual property, pre-paid stock, and stock on order and in hand
  • Medlab says the deal will enable it to make a saving of around $2 million annually on operating expenses, allowing it to better align its focus on areas of strategic growth
  • Following the deal, and a research and development grant, Medlab says it will be in a strong cash position, with $13 million in the bank
  • Medlab shares were up 5.56 per cent at the close of trading on Thursday to 20 cents each

Medlab Clinical (MDC) has completed the divestment of its Australian Nutraceuticals business to PharmaCare.

The transaction for the Medlab-branded nutraceuticals line will involve $2.2 million in cash from PharmaCare, in return for the transfer of specific Medlab intellectual property, pre-paid stock, and stock on order and in-hand.

Phase one of the deal is complete, with phase two — involving a two-year earnout — in place to be the greater of $250,000 or five per cent of net sales per year during the first two years.

Medlab said the deal will enable it to make a saving of around $2 million annually on operating expenses, allowing it to better align its focus on areas of strategic growth.

Both companies have agreed to work together on future product development, providing ongoing innovation to PharmaCare as well as an ongoing income stream to Medlab.

Following the deal, and a research and development grant, Medlab said it will be in a strong cash position, with $13 million in the bank.

Medlab said it’s fully focused on commercialising its Biotech assets, regulatory approvals, partnering and early market access initiatives.

Medlab shares were up 5.56 per cent at the close of trading on Thursday to 20 cents each.

MDC by the numbers
More From The Market Herald

" RocketBoots (ASX:ROC) lists on ASX after $4.25m IPO

Software company RocketBoots (ROC) has debuted on the ASX today after raising $4.25 million through an initial public offer (IPO).

" Gladiator Resources (ASX:GLA) begins exploration at Minjingu

Zeus Resources, a wholly-owned subsidiary of Gladiator Resources’ (GLA), has begun exploration activities at the Minjingu Uranium Project.
Mineral Commodities (ASX:MRC) - CEO, Jacob Deysel

" Mineral Commodities (ASX:MRC) updates MRE at Tormin Inland Strands

Mineral Commodities (MRC) has updated the mineral resource estimate (MRE) for the Western Strandline at the Tormin Inland Strands deposit in South Africa.

" IODM (ASX:IOD) secures new revenue opportunity from WUBS partnership

Software solution company, IODM (IOD) has received a new revenue opportunity from its existing partnership with Western Union Business Solutions (WUBS).