Medical Australia (ASX: MLA) has gained billionaire Lang Hancock's Auckland Trust Company as a 2.4% shareholder via a shortfall of 10,871,698 options taken up by the trust.
Recently, Medical Australia has undergone a transformation under managing director Mark Donnison, who was instrumental in lifting Alphafarm turnover from $10 million to $600 million.
The company's MediVet division is expected to provide significant revenue potential in the UK as a result of its patented stem cell process to roll out to veterinary clinics and equine centres throughout the UK.
In total just under 65 million $0.02 options were converted into ordinary shares providing $1.3 million in cash to the company boosting the cash position to over $1.5 million, which importantly doesn't include a further $850,000 of pending customer receipts.
Donnison said “We are pleased that Auckland Trust Company Limited has emerged as a 2.4% shareholder in MLA and delighted to have Lang Walker on MLA’s register.”
The solid cash position provides Medical Australia with flexibility to fast track organic growth initiatives to enable the company to maintain ongoing revenue and profit growth during financial year 2012.
In other important news for Medical Australia, earlier in the month the company reached a significant milestone with the completion of a major clinical trial using Analytica's (ASX: ALT) AutoStart Burette infusion technology, and the signing of a supply agreement with a major Sydney hospital, Concord Hospital.
Medical Australia is now forecasting sales revenue upwards of $500,000 per annum for the product based on the Concord Repatriation General Hospital's usage figures, and revenue will flow immediately from the agreement.
The AutoStart Burette infusion set automatically restarts the delivery of intravenous fluid once the burette has dispensed its predetermined amount of liquid or drug, and is now in the stage of a full roll out at the Concord Hospital.