SeeThruEquity Issues Update on DelMar Pharmaceuticals, Inc. Highlighting Recent Uplisting to Nasdaq

NEW YORK, NY / ACCESSWIRE / July 20, 2016 / SeeThruEquity, a leading New York City based independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced that it has issued an update note on DelMar Pharmaceuticals (NASDAQ:DMPI), a company focused on developing and commercializing proven cancer therapies in new orphan drug indications.

The note is available here: DMPI July 2016 Update.

“DMPI management competed a key strategic goal on the corporate development front, with the company uplisting shares to the Nasdaq Capital Market as of July 12, 2016. CEO of the company, Jeffrey Bacha, rang the NASDAQ’s opening bell on July 14, 2016. We see the move as a major milestone for the company and a significant accomplishment by management, reflecting the measurable progress by the company over the last several years. As part of the uplisting process, DelMar completed a capital raise to ensure the company would meet shareholders’ equity requirements, and a 1 to 4 reverse stock split in order to meet the minimum bid requirement to list shares on the NASDAQ. Additionally, the uplisting to the NASDAQ should serve to raise DMPI’s prestige in the industry while improving share liquidity and allow access to potential institutional investors who could not invest in OTC shares,” commented Ajay Tandon, CEO of SeeThruEquity. “We are adjusting our price target for DMPI to $19.20 from the prior target of $5.75, reflecting the new share count and the 1 to 4 reverse split.”

Additional highlights from the update note are as follows:

DMPI lists on Nasdaq Capital Market

DMPI management competed a key strategic goal on the corporate development front, with the company uplisting shares to the Nasdaq Capital Market as of July 12, 2016. We see the move as a significant accomplishment by management, which should serve to raise DMPI’s prestige in the industry while improving share liquidity and allowing DMPI access to potential institutional investors who could not invest in OTC shares.

Financing eases liquidity pressures

In May, DelMar completed a private placement in which the company raised a $6.1mn in gross proceeds ($5.6mn net), through the issuance of preferred stock. We believe the raise was a part of the company’s efforts to uplist to the Nasdaq (as was a 1:4 reverse stock split). As part of the transaction, DMPI restructured 72% of investor warrants in order to reduce its derivative liability. DMPI management now estimates that it has approximately $10mn of potential additional funding from in-the-money warrants. Considering the financing and potential warrant exercises, management believes it has sufficient funding to last through 2017.

DelMar continues to advance its clinical program

In addition to the corporate initiatives completed over the last seral months, DMPI continues to advance its clinical program.The company had a successful presentation of Phase 1/ Phase 2 data from its VAL-083 GBM clinical trials to key figures in the global cancer research community at the cancer at the American Society of Clinical Oncology’s (ASCO) Annual Meeting in June, and has outlined plans for a Phase 3 clinical trial for VAL-083 for refractory GBM and another two Phase 2 trials for GBM in earlier stage patients.

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