re: Ann: MLA Raises $4 Million To Fast Track ...
Nice little plug in the Australian, Liking the Several millions of dollars EBITDA guidance provided by Mark Donnison. at approx 18m market cap, and growth on the way, looking good for some sustainable appreciation in the SP.
"Medical Australia (MLA) 21c WHEN we last covered this stem-cell play in July 2011, the Lang Walker-backed outfit had picked up British distributor rights for MediVet, which sells animal therapies. This went so well that in June this year MLA said it would buy the private MediVet for $10m in a quasi backdoor listing, payable half in scrip and half in cash. Later, the vendors agreed to be paid fully by way of 36 million MLA shares issued at 30c.
Now, property moneybags Walker has chipped in for a $4m raising to advance MediVet's activities, which include servicing Saudi Arabian racing camels. "I would expect the combined entities to do several million dollars of EBITDA next financial year," MLA chief Mark Donnison says.
The potential for a rerating is highlighted by stem-cell play Regeneus (RGS, 45c), which is developing a canine cancer vaccine.
But there's no sure thing in biotech and fast-food king Jack Cowin, who backed the disappointing animal-human health play Bioniche (BNC, 35c) should have stuck to hamburgers.
The Canadian-based Bioniche, which listed three years ago at $1.50, plans to delist from the ASX. Still, we'll join Lang in backing MLA as a spec buy and we're also happy to punt on Regeneus."
- See more at: http://www.theaustralian.com.au/business/opinion/when-breaking-up-isnt-so-hard-to-do/story-e6frg9lo-1226780141954#sthash.wgl1Zdeg.dpuf
MLA Price at posting:
21.0¢ Sentiment: LT Buy Disclosure: Held
