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 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 2 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 3 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
- 4 British man raped while urinating in bushes at Oktoberfest beer festival in Germany
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
George Clooney and Amal Alamuddin wedding: The famous congratulate actor and human rights lawyer after Venice nuptials
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...
£300 - £330 per day: Ashdown Group: SQL Developer (Stored Procedures) Watford...