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- Medlab Clinical (MDC) has received firm commitments from investors to raise $5.4 million
- More than 35 million shares will be issued to institutional and sophisticated investors at 15 cents per share
- Medlab has also announced that it will be undertaking a share purchase plan to raise up to $4 million
- Eligible shareholders will be able to purchase up to $30,000 worth of shares at the same price as the placement
- Money from both the placement and share purchase plan will primarily be used to ensure the phase three trials for NanaBis are uninterrupted
- NanaBis an oral cannabis-based pain treatment that is used to treat patients with metastatic cancers
- Medlab shares have dropped 12.2 per cent and are trading for 18 cents each just before market close
Medlab Clinical (MDC) has received firm commitments from investors to raise $5.4 million.
A total of 35,984,020 fully paid shares will be issued to new and existing institutional and sophisticated investors at a price of 15 cents per share.
This price represents a 26.8 per cent discount to Medlab’s last close of 20.5 cents on June 10.
Shares are expected to settle on June 18 and be allocated on June 19.
Medlab has also announced that it will be undertaking a share purchase plan to raise up to $4 million.
Eligible shareholders will be able to purchase up to $30,000 worth of shares at a price of 15 cents per share without incurring any transaction costs.
Medlab has the right to scale back applications at its own discretion and if its need to be scaled back, excess funds will be returned back to the shareholders.
The share purchase plan is expected to open on June 17 and close on July 3. Shares will then be issued on July 8 and can begin trading on the ASX on July 9.
Medlab will use the money from both the placement and share purchase plan to ensure the phase three trials for NanaBis are uninterrupted, ensure adequate funding for any delays caused by COVID-19, and general working capital.
NanaBis is Medlab’s cannabis-based pain treatment that is used to treat patients with metastatic cancers. The product comes as a spray and is applied to the inside of the cheek.
“The support shown for the placement has been extremely pleasing and appreciated,” CEO Sean Hall said.
“These funds help the company to ensure the path of NanaBis to phase three trials submissions are uninterrupted,” he added.
Medlab shares have dropped 12.2 per cent and are trading for 18 cents each just before market close.
