Thursday, 18 September 2008

Med BioGene Pulls Rabbit Out Of Tattered Market Hat



MED BIOGENE INC. (TSX:V-MBI)

Basic shares: 39.8 million

Fully diluted: 51.9 million


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Med BioGene management is confident they did what few other biotechs could in these spiralling markets – raised sufficient cash to get its first science to market.
That’s no small feat in a market that has increasingly turned its back on small cap firms – especially biotechs.


But Med BioGene today announced that it raised $1.8 million at $0.15 per share with a half warrant exercisable at $0.20 in two years. It had hoped to raise up to $3 million. This not only fills the company’s coffers, it also sends a strong message to the market that the company’s products are for real.


In the news release, the company says the money raised will be used to advance its product pipeline and general corporate purposes.


The commercialization of Lung Express DX™ and Lymph Express DX™ each with net present values of over $300 million, will be the sole focus of the company in the coming months.
Even in a challenged market, once MBI successfully begins to generate cash flow the current market cap will surely not suffice.