Medlab Clinical (ASX: MDC) has topped up its cash reserves with a $15 million placement, while boosting its board expertise with the appointment of “leading” pharmaceutical executive Cheryl Maley.
The company announced on Friday it had raised $15 million (before costs) via a two-tranche placement of 62.5 million shares at $0.24 each to sophisticated and institutional investors – both new and existing.
The $0.24 issue price represented an 18.6% discount to Medlab’s last closing price of $0.295 on 16 March. It was also a 24.3% discount to the company’s 15-day volume weighted average price.
Medlab chief executive officer Sean Hall said it was “extremely pleasing” to see the support shown in the placement, with the company to now have more than $16 million in cash to fund its clinical trials and commercialisation plans.
Specifically, placement proceeds will underpin the start of phase 3 clinical trials for Medlab’s cannabinoid-based drug for cancer-induced bone pain NanaBis, with these trials to be undertaken in US, the UK and Australia.
Proceeds will also assist Medlab with gaining market access for NanaBis under the US Food and Drug Administration’s expanded access scheme, with a second IND application planned to pave the way.
The placement will also provide working capital to advance other research programs, and partnership discussions, with a focus on Medlab’s NanoCelle delivery technology.
Pharmaceutical executive appointment adds experience
As well as topping up its coffers, Medlab has boosted its board capabilities by appointing Mrs Maley to the position of non-executive director.
Mrs Maley has more than 20 years’ experience in the pharmaceutical sector and is currently managing director of oncology for global healthcare company Novartis.
Her previous experience includes roles across sales, marketing, business development, commercial excellence, patient access and general management.
According to Medlab, Mrs Maley has a proven track record in accelerating and driving long-term growth.
Chairman Michael Hall said Mrs Maley’s appointment broadens the board’s skill set and is aligned with the company’s strategy to commercialise novel therapeutics.
“Mrs Maley’s global focus, especially within her US (Chicago-based for three years) and Asia tenure (Philippines-based for three years) in seeing products through tot regulatory approval and knowledge of the oncology market, will be invaluable as we embark on the next stage of our journey,” Mr Hall added.