Cannabis play Medlab Clinical just raised $24 million in an over-subscribed share placement.

The announcement pushed shares as high as $1.15 in early trade — a record high. The shares were trading at $1.12 at 1pm AEDT — a gain of 11 per cent.

The cash will be used to accelerate by 12 to 18 months the commercialisation of NanaBis, Medlab’s cannabis-based medicine.

“These funds help put the company in a strong financial position,” CEO Sean Hall told investors.

“The funds also help Medlab (ASX:MDC) 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 (ASX:MDC) shares over the past three months.
MedLab (ASX:MDC) shares over the past three months.

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.

This article first appeared on Business Insider Australia, Australia’s most popular business news website. Read the original article. Follow Business Insider on Facebook or Twitter.

 

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