Medlab Clinical has put its planned US Nasdaq listing on hold, with the company now turning its attention to reducing expenditure and securing alternative sources of capital.
In a quarterly update to shareholders, the ASX-listed firm said: "While we are very happy with the progression the company has made and the significant milestones achieved, we had hoped to disclose Nasdaq deal success with this announcement and provide a strong financial optic.
"Unfortunately, timing is everything, and right now we have been advised the US markets are simply not responsive."
Shareholders had backed the Nasdaq listing at an extraordinary general meeting in July 2022, though the ASX resolution authorising the move is due to expire on Friday (January 27).
Medlab described the delay as temporary, attributing the difficult market conditions and volatility to factors "beyond anyone's control". The company told shareholders it was "working on delivering a financial solution inclusive of both cost reductions and suitable financing mechanisms".
"Regardless of this setback, and the need to pivot our financial strategy, the prize is compelling," it added.
Cash outflows from operations in the December quarter reached A$2.84m, which included $1.34m in R&D spending, while cash receipts grew to A$563k.
Medlab said: "The company continues to review operations, cash flow and resource requirements.
"With the business having a more streamlined biotech focus, a greater portion of labour and overheads are now eligible for R&D grant receipts."
The company's cash position stood at $2.76m as of December 31, 2022, down from $5.29m the quarter prior.
UPDATE (January 25, 2023): Medlab's cannabinoid-based pain-management medicine NanaBis has been issued import certification by the UK Home Office.
The firm recently announced positive interim results from an observational study examining the safety, tolerability and efficacy of the medicine across 1,172 Australian patients.
Medlab is now seeking export certification from Canberra, a process the company said typically takes 28 days.
CEO Dr Sean Hall said: "It's great to be able to expand the successes we have had with NanaBis (named NanaDol for export purposes) to the UK people.
"As we recently announced, those data points across 1,100 Australian patients were very encouraging. We are looking forward to replicating those success stories."
