Gallagher-backed medical technology company Nutriband seeks to raise $ 6 million in US
American medical tech Nutriband, founded by Dubliner Gareth Sheridan and whose executive chairman is former presidential candidate Sean Gallagher, is trying to raise $ 6 million (â¬ 5 million) to fund research and development of one of its products and finalize the acquisition of a manufacturing company.
utriband, which develops transdermal pharmaceuticals, including those for managing chronic pain requiring constant opioid therapy, was founded in 2012 and currently generates limited revenue.
Following the acquisition of manufacturing company Pocono last year, Nutriband said it now focuses primarily on providing contract manufacturing and consulting services to third-party brands. He will use $ 1.5 million from the capital increase to complete the purchase of Pocono.
Nutriband warned last year that its future was uncertain if it was unable to secure financing or enter into a joint venture deal.
However, this week the company insisted in a flyer that it is now confident he has a future.
He said that as of July 31 of this year, he felt that the “substantial doubt” about its status as a going concern “had been resolved”.
âThe going concern conditions that caused substantial doubt consisted of a net loss for the current quarter, negative working capital, negative cash flow and an accumulated deficit,â he noted.
âManagement has plans in place to remove real doubt. These plans include a substantial increase in sales commitments, a decrease in expected overheads, equity funding that has been received and additional funding that is expected to be received, and net revenues from its recent acquisitions, âhe said. he adds.
At the end of last July, Nutriband had only $ 304,000 in cash and cash equivalents and a working capital deficit of $ 2 million.
Nutriband said about $ 3 million of the money he intends to raise through a stock sale will be used for research and development of Aversa, his anti-abuse fentanyl transdermal system.
However, he noted that although he expects the money will be enough to complete the development of the product and make a submission to the United States Food and Drug Administration (FDA) for the product, it will take an additional $ 2-3 million to complete the clinical trial process of the FDA.
“It is possible that our costs will significantly exceed these amounts,” he warned potential investors.