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It's only been a few weeks since Medlab Clinical (ASX: MDC) became the ASX's newest cannabis supplier, and now the company has completed a heavily over-subscribed share placement to raise $24 million.
Settlement is expected to occur next week for the 26.6 million MDC shares and the new funds are set to bolster the company's commercial offering as well as its research and development (R&D) department.
Medlab CEO Sean Hall said the fresh capital will primarily benefit the company's trademarked NanaBis product, a buccal spray produced in Melbourne which is designed to alleviate cancer pain and provide an alternative to opioid treatment.
"The support shown for the placement has been extremely pleasing and appreciated," says Hall.
"These funds help put the company in a strong financial position and allows Medlab to accelerate the commercialisation by some 12 to 18 months ahead of schedule of NanaBis under the government's Special Access Scheme."
Hall said the funds will also help Medlab accelerate its R&D in areas including obesity, diabetes and depression.
When it comes to NanaBis, Hall said earlier this month that Medlab will continue to build the confidence of the medical fraternity in prescribing the product.
The placement was co-managed by Bell Potter Securities and APP Securities.
MDC shares have jumped 9.8 per cent at around (9:39am AEST) to trade at $1.11.
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