The placement, which was oversubscribed, will see almost 17.86 million shares placed and the company expects that settlement will take place on Friday, December 20, 2019.
New shares are expected to be allotted on Monday, December 23, 2019.
Acova Capital and Morgans Corporate Limited acted as joint lead managers to the placement.
“Extremely pleasing” support
Medlab CEO Sean Hall said, “The support shown for the placement has been extremely pleasing and appreciated.
“These funds help the company address short-term goals as it prepares for Phase 3 research of its NanaBis™ drug candidate program.
“Medlab would like to take this opportunity to thank Morgans Corporate Limited and Acova Capital for completing the successful placement.”
The issue was within the prescribed 15% limit under ASX Listing Rule 7.1, and all shares issued pursuant to the placement will rank equally with existing ordinary shares.
Ethics Observational Study
Medlab is progressing with its Ethics Observational Study for NanaBis, a highly purified proprietary blend of cannabis molecules cannabidiol (CBD) and tetrahydrocannabinol (THC).
This pain management medicine is delivered into the body using Medlab’s patented sub-micron delivery platform NanoCelle.
The Ethics Observational Study is part of Medlab’s commitment to clinical trials pathway to drug registration for NanaBis that includes the current study close to completion at The Royal North Shore Hospital in Sydney.
This study, which is assessing real-world use of NanaBis, will provide further evidence for safety and tolerability and review the impact NanaBis has on current prescriptive medicines used in pain settings, thus bolstering Medlab’s goal of drug registration.
UK distribution agreement
Medlab has also recently executed a distribution agreement with nutritional supplement manufacturer Cultech Ltd that will see the company expand its nutraceutical business into the UK.
This exclusive distribution agreement follows the recent execution of a definitive agreement to expand Medlab’s nutraceutical business in the USA.
Similar to the previous US deal, the UK agreement provides minimal operating expenditure exposure for Medlab and provides for 20% royalties ex-factory under the transfer agreement.
This agreement focuses on two Medlab products:
- ORSBiotic™: Part of the existing Medlab Australian and US nutraceutical ranges, a patented probiotic rehydration formulation; and
- NanoCBD™: A new cannabinoid product utilising Magnesium and CBD from the newly manufactured NanoCBD™ product - the product utilises Medlab’s patented delivery platform, NanoCelle™.