Biotech Medlab Clinical Limited just raised $24 million in an over-subscribed share placement.
The cash will be used to accelerate by 12 to 18 months the commercialisation of NanaBis, Medlab’s cannabis-based medicine.
In early trade today, the company’s shares surged by as much as 10%. A short time ago, they were trading at $1.12.
“These funds help put the company in a strong financial position,” says CEO Sean Hall.
“The funds also help Medlab to accelerate its research and development program of other areas in chronic diseases, including obesity, diabetes and depression.”
NanaBis is manufactured and distributed from Victoria. Earlier this month the Victorian Government granted Medlab a licence to sell or supply cannabis derived drugs.
Medlab Clinical, which listed on the ASX in 2015, also has NSW Government approval for trials of medical cannabis as a pain reliever.
Medlab was formed by Sean Hall after he sold his family’s companies Bioceuticals and Hall Drug Technologies to vitamin giant Blackmores in 2012.
Bell Potter Securities Limited was lead manager and APP Securities Pty Ltd was the co-manager to the equity raising.