Medlab Clinical chief executive Dr Sean Hall is to take ownership of the company’s drug-delivery intellectual property after plans to sell the business fell through.
Hall will acquire 100% of the share capital of two subsidiaries – Medlab IP and Medlab Clinical US – which hold all the company’s IP.
It will enable him to use the IP, including that of flagship platform NanoCelle, in countries where Medlab has patent protection.
In a separate deal, medtech start-up T2 Pharmaceuticals has been granted an exclusive licence to use the NanoCelle technology in regions where Medlab is not patent protected.
While the deal with Hall will need to be ratified by shareholders at a general meeting, no such approval is required for the T2 licensing agreement.
The developments come almost nine months after Medlab Clinical was suspended from the ASX after running into financial difficulties following its failure to list on the NASDAQ.
Directors have been working with external consultants Hall Chadwick since March in a bid to restructure or sell the company.
But despite identifying more than 100 potential partners, which led to negotiations with several groups interested in Medlab’s technology, volatile market conditions, heavy capital requirements and the overall risk “prevented formal bids being presented”, the company said in an update to shareholders.
Under a proposed four-year deal with Hall, who holds 17% of Medlab according to the firm’s 2022 annual report, the CEO will pay a 20% royalty fee on any revenue generated from the sale of products which use NanoCelle, and 20% from any licences he grants.
Directors have urged shareholders to accept the proposal.
Meanwhile, T2 will pay 16.5% of any revenue it generates for a 36-month period upon receipt of its first sale or licensing agreement. The firm, which is owned by Nishnil Singh and Dharmit Kaushik Goradie, will be allowed to use the technology in countries including Mexico, India, China, Japan, Indonesia and Malaysia.
In a further move outlined to shareholders, Medlab will undertake a capital raise to provide working capital and to “explore new opportunities [and to] identify new assets”.
Details of the raise “have to be determined”, it said.
Changes to the board are also likely with the appointment of new directors who can “assist with identifying opportunities of value for shareholders and drive the company’s direction forward”.
Cannabiz has contacted Hall for comment.
