AUS
NZ
UK
CA
USA
IND
Mental health company Medibio Limitedâs (ASX:MEB) shares went down by ~40 percent today (i.e., on 10 December 2018) following the announcement of the company about receiving firm commitments from investors to subscribe for around 125 million Convertible Notes at a price of $0.02 per note. The company also made an announcement regarding an Entitlement Offer in which company announced a non-renounceable pro-rata rights issue of 1 fully paid ordinary share for each 1 Share held by eligible shareholders to raise around $4.05 Mn.Â
The opening date of the entitlement offer is 18 December 2018, and the closing date is 7 February 2019. As per the announcement, the shareholders need to exercise their options at least two days before 13 December 2018 (Record Date). The normal trading of new shares which will be issued under the Entitlement Offer and is expected to commence on 15 February 2019.
Under the Convertible Note Deed Poll, the company will receive approximately $2.5 Mn in two tranches under a Convertible Note Deed Poll. In tranch one, the company will issue 30,394,240 Notes to raise $607,885, and in tranch two, the company will raise a further $1.9 Mn which will be subject to the shareholdersâ approval. Each note is going to have a face value of $0.02, with a maturity date of 18 months, and unless converted earlier, all Notes must be converted on their maturity date.
The proceeds from the Convertible Notes and entitlement offer will be used for funding the costs of the Entitlement Offer, for advancing the companyâs 510(k) regulatory approval, for progressing the companyâs De Novo submission, technology development, product commercialization and for the Company's working capital requirements.
Recently, the company signed an agreement with AIA Australia Ltd (AIAA) to conduct a pilot program for the MEBâs corporate health program, ilumenâ¢. The objective of this agreement is to bring Medibioâs unique mental health technology to as many people by providing AIAA access to ilumen⢠over six months for its Australia and New Zealand employees.
Last month (November), the company provided an update regarding the current De Novo submission and forward regulatory strategy in which the company informed that it is planning to pursue a parallel FDA premarket submission process, known as 510k clearance, in addition to the De Novo application.
In the month of November, the company appointed Mr. Mathew Watkins for the role of Joint Company Secretary. Further, the company also appointed Mr. David B. Kaysen as a new CEO and Managing Director of the company. On 6 December 2018, the companyâs share were placed in a trading halt at the request of MEB, pending an announcement by the Company to the market in relation to a material capital raising.
Meanwhile, in the last six months, the share price of the company decreased by 75 percent as on 5 December 2018. MEBâs shares traded at $0.024 with a market capitalization of circa $8.11 million as on 10 December 2018.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
