Biotech Medlab has launched a $5.36 million equity raising to fast-track human trials of medical cannabis.
The 1-for-9 rights issue is at 30 cents a share. The shares last traded at 42 cents, well ahead of the year low of 16 cents.
The cash will mainly be used to accelerate a program of human trials of cannabis-based pain management therapy at a leading Australian oncology research hospital.
The pain management therapy combines two cannabis compounds, CBD (cannabidiol) and THC (tetrahydrocannabinol).
Managing director Sean Hall says preliminary results from the company’s NanoCelle delivery system and work on depression and obesity have been promising.
“We expect this accelerated program and new equipment will result in licenced products to market at least 12 months ahead of our current forecasts,” he says.
Medlab Clinical, which listed on the ASX a year ago, has been given 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.