IvelinRadkov
MEI Pharma (NASDAQ:MEIP) announced Thursday that its board of directors unanimously agreed not to proceed with plans to offer a second return of capital to investors, which was part of an agreement the company struck in October.
The agreement with investment advisor Cable Car Capital and asset manager Anson Funds provided a potential second return of capital worth up to $9.33M, depending on the results of an ongoing early-stage trial for cancer candidate ME-344.
The decision comes after the MEIP board unanimously agreed with plans to prioritize the development of the company’s leukemia candidate, voruciclib, and targets a new ME-344 formulation for a Phase 1 trial.
As part of the Anson Funds and Cable Car Capital cooperation agreement, the company paid $11.7M in the form of a special cash dividend of $1.75 per share as a capital return to investors in November.
MEI Pharma (MEIP) said its plans to shelve the second return of capital will “conserve resources and align strategic investment, and thereby extend the company’s operational runway.”