Medibio (ASX:MEB) says it has received firm commitments to raise $2.25 million through the issue of new fully paid ordinary shares.
The shares will be issued at a price of $0.0015.
The company said a range of new and existing international and domestic institutional, professional and sophisticated investors well supported the placement. It also includes commitments from the non-executive chairman, David Trimboli, and other senior management personnel for $100,000 collectively.
Mr Trimboli’s participation will be subject to shareholder approval at an upcoming general meeting in early October.
The company said funds from the placement will be used to fast-track its Phase 2 clinical trial for its Sleep Signal Analysis for Current Major Depressive Episode study (SAMDE).
It said the additional capital will also be deployed towards the progression of its de novo regulatory pathway with the US FDA for MEB-001, as well as the commercial roll-out of Stager, its AI-based software solution that provides research groups with new data metrics in sleep studies.
Medibio CEO Dr Tom Young said, “We are pleased to confirm this placement following the recent successful completion of Phase 1 trials for Medibio’s unique SAMDE study.
"As previously announced, preliminary Phase 1 results were highly encouraging and this Placement provides the Company with a clear funding pathway to execute on the next phase of the study leading into Phase 2 trials, which in turn will form a core part of Medibio’s FDA submission for its proprietary MEB-001 technology.
"The Placement provided an opportunity to engage directly with our sophisticated investor base, and the feedback was unanimously supportive with regard to the research work we are carrying out as well as the Company’s long-term value proposition.
"On behalf of the Medibio management team, I’d like to thank these investors for their support and we look forward to providing more important updates in the second half of 2023 as Phase 2 trials progress.”