Rescue rights secures ML Labs
Thursday 29 January 2004
ML Laboratories, the little biotech group which makes a novel kind of inhaler, tied up a rescue rights issue yesterday that will help bring in £14.3m to fund the development of new drug projects.
The company admitted last week it was no longer confident it had sufficient working capital to carry on as planned, after it failed to license any of its early-stage work to bigger pharmaceuticals companies in the time it had hoped.
ML, whose founder Kevin Leech was forced from the board in 2002 after being declared bankrupt, is offering a new share for every four already held in a fully underwritten rights issue that will raise £8.7m. But it has additionally sold 31 million new shares to institutional investors, several of whom are new to the share register.
Although sources close to the company believe a new chief executive will be appointed later this year, the fundraising has not been accompanied by any promise by Stuart Sim, the executive chairman, to reduce his role. A chief executive will be hired "at the appropriate time", he said.
Mr Sim has overseen a dramatic downsizing of the business over the past 18 months which has seen the sale of contract manufacturing businesses, including the flotation on AIM of Cobra Bio-Manufacturing.
"Today's restructuring on the financial side is the final part of the restructuring of the business," Mr Sim said. "Our broker is predicting maiden profitability in 2005."
The new shares are being sold at 22p, a 34 per cent discount to the price before last week's admission that the company was out of cash. The stock was down 0.25p at 25.25p yesterday.
- 1 What happens to your body when you give up sugar?
- 2 Ed Miliband less influential than One Direction's Louis Tomlinson in official Doncaster power list
- 3 Japanese island overrun with cats after population explodes
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
California teacher appears to have hanged herself in her classroom
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Japanese island overrun with cats after population explodes
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
Bubonic plague-carrying fleas found on New York City rats
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£18k + Uncapped Commission (£25k Y1 OTE): Guru Careers: We are seeking an Inbo...