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.
Matt Smith is set to join cast of Jane Austen classic - with a twist
Olympic diver has made his modelling debut for Adidas
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 'Necrophilia-obsessed' girl among double murder accused in three-way sex case
- 4 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing result either way
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Jennifer Lawrence 'naked sex video' will be leaked next, threatens 4Chan celebrity photo hacker
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£70-90,000: Saxton Leigh: Our client a London Market Insurer are seeking a Pro...
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...