- Medlab Clinical (MDC) has tapped new and existing investors for $15 million via a two tranche share placement
- The company offered up 62,500,000 company shares to sophisticated and professional investors at 24 cents per share
- Should the placement go as planned, Medlab anticipates its cash balance will clock in at $16 million, which it plans to spend on phase three clinical trials and working capital for the year ahead
- Both shares packages are set to be allotted this month
- Medlab shares are off 11.9 per cent following the announcement, trading at 26 cents
Medlab Clinical (MDC) has tapped new and existing investors for $15 million via a two tranche share placement.
The company tabled 62,500,000 company shares to professional and sophisticated investors at 24 cents per share to raise the funds, managing to round up a number of “leading institutions onto the register.”
Medlab says the placement price of 24 cents per share represents a 18.6 per cent discount on the close price for March 16 and a 24.3 per cent discount to the 15-day volume-weighted average price (VWAP).
The 48,379,990 shares from the first tranche are set to be issued on Thursday March 25 with the remaining shares — pursuant to shareholder approval — expected to be allotted later in the month.
Should the placement go ahead as planned, Medlab has anticipated a cash balance of $16 million, which it has laid plans to spend on international phase three clinical trials and provide working capital for the next 12 months.
Medlab’s Chief Executive Officer Sean Hall said support shown for the placement had been extremely pleasing and appreciated.
Medlab shares are off 11.9 per cent following the announcement, trading at 26 cents at 2:03 pm AEDT.