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Medlab Clinical in trading halt with placement announcement imminent

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The company’s securities will remain halted until Tuesday, December 17 or when an announcement is released to the market.

Medlab is developing therapies for pain management, depression and obesity

() has an announcement pending in relation to a placement and has been granted a trading halt by the ASX.

The trading halt will remain in place until the beginning of normal trade on Tuesday, December 17, 2019, or when an announcement is released to the market, whichever occurs earliest.

Medlab's securities last traded at 32.5 cents and the company has a market cap of approximately $70 million.

UK distribution agreement 

The company recently executed a distribution agreement with nutritional supplement manufacturer Cultech Ltd that will see Medlab 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 US deal, the UK agreement provides minimal operating expenditure exposure for Medlab and provides for 20% royalties ex-factory under the transfer agreement.

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