A share purchase plan is also underway with proceeds from both activities to smooth the path of the company’s NanaBis™ to Phase 3 trials submissions.
() has received firm commitments from new and existing institutional and sophisticated investors, raising A$5.4 million, before costs, through the placement of almost 36 million shares at an issue price of 15 cents per share.
In addition, the company intends to raise up to A$4 million in a share purchase plan (SPP) which is not underwritten.
Funds from the capital raising will be used to support the progress of the company's patented cannabis-based medicine NanaBis™ to Phase 3 trials submissions.
Medlab chief executive officer Sean Hall said: “The support shown for the placement has been extremely pleasing and appreciated.
“These funds help the company to ensure the path of NanaBis™ to Phase 3 trials submissions are uninterrupted.
“I would like to thank the ongoing support from existing shareholders and we welcome a number of new institutional and sophisticated shareholders to Medlab.
“I would like to take this opportunity to thank Morgans Corporate Limited and Acova Capital for completing the successful placement.”
The placement is not subject to shareholder approval and Medlab anticipates settlement to occur on Thursday, June 18, 2020, with the new shares being issued on Friday, June 19, 2020.
Share purchase plan
In addition to the placement, in recognition of the company's existing shareholders, eligible shareholders will have the opportunity to participate in an SPP at the same issue price as the placement.
The offer price represents a 26.8% discount to last close of 20.5 cents on June 10, 2020, and the company intends to raise up to A$4 million.
Under the SPP, the company will offer all eligible shareholders with a registered address in Australia the opportunity to apply for up to $30,000 shares without incurring brokerage, commissions, stamp duty or other transaction costs of new shares (subject to any pro-rata scale back).
The indicative timetable for the SPP is:
Opening date, and dispatch of SPP plan at 9am (Sydney time) Wednesday, June 17, 2020; Closing date of 5pm (Sydney time) Friday, July 3, 2020; Issue date of Tuesday, July 7, 2020; Date when shares issued under the offer are expected to commence trading on the ASX of Wednesday, July 8, 2020; and Despatch of holding statements in respect of shares issued under the offer on Thursday, July 9, 2020.Use of funds
The proceeds of both the placement and the SPP will be used as follows:
To ensure the path of NanaBis™ to Phase 3 trials submission is uninterrupted; As funding to bridge multiple research catalysts over the next 12 months; As working capital for VMS inventory to maintain sales and promote new sales channel; As working capital for NanaBis™ inventory for growing sales and international markets and NanoCBD launch; and To ensure adequate funding to cover any potential COVID-19 related regulatory delay.