Medlab Clinical shares rally as biotech group kicks off US IPO plans

The biotech group’s shares rally as chief executive Sean Hall and his team prepare for a dual listing in the US.

Medlab Clinical is heading to the US to raise capital via an initial public offering.

Medlab Clinical shares soar following the biotech group’s US move to raise capital via an initial public offering.

The ASX-listed biotech group said on Wednesday that it has filed a registration statement with the US Securities and Exchange Commission for a dual listing.

Medlab, led by chief executive Sean Hall, is looking to list on the Nasdaq Capital Market and raise as much as $US8.1m ($12.03m).

Medlab will continue to trade on the Australian Securities Exchange. Its shares closed up 5.4 per cent at $6.90 on the ASX on Wednesday, giving it a market capitalisation of $15.76m.

Its filing comes after its key NanoCelle technology recently passed another major milestone, with potential for needle-free delivery of mRNA vaccines and insulin for diabetes.

The group last month announced that its nasal RNA program is entering the final phase of development.

Medlab’s drug pipeline consists of several small and large molecules from repurposing generic medicines to enhancing the delivery of immunotherapies.

Medlab estimates that the net proceeds from the share sale will be around $US7m, or $US8.1m if the underwriter’s option to purchase additional shares is exercised in full.

Under its IPO proposal, Medlab plans to sell 1.8 million shares at $US4.45 each, and one warrant to purchase one ordinary share at the same price.

Plus, 1.8 million pre-funded units at $US4.49 consisting of one pre-funded warrant to purchase one ordinary share with an exercise price of $US0.0001 a share and a share purchase warrant with an exercise price of $US0.0001 a share.

Medlab has also granted its underwriter, EF Hutton, a 45-day option to purchase up to an additional 269,662 shares or share purchase warrants to cover over-allotments.

The group will also issue to the underwriter warrants to purchase a number of shares equal to an aggregate of 2 per cent of the shares and/or pre-funded warrants sold in the offering. The exercise price of the underwriter’s warrants is equal to $US4.45.

In August, Medlab said it would push ahead with its US float after reporting a 33 per cent jump in annual revenue to $3.8m as its net loss dropped by 42 per cent to $7.2m.

“A dual listing will help the company improve its global presence and greater opportunities to capital. The board is of the view that this will have a positive impact to Australian shareholders,” chairman Michael Hall said at the time.