DelMar IPO Obscurity Could Offer Investors Favorable Entry

Apr. 24, 2013 5:32 AM ETKintara Therapeutics, Inc. (KTRA)
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DelMar Pharmaceutical's Introduction to the Investment World

DelMar Pharmaceuticals (DMPI.OB) started 2013 with a revealing corporate update on January 8th. In the update, president and CEO Jeffrey Bacha outlined his goals with an exciting year ahead for the company and its employees. Mr. Bacha focused primarily on the company's lead product candidate, VAL-083, a small molecule (chemotherapy) agent that DelMar is developing in a dose escalation trial for recurrent glioblastoma multiforme (GBM). Readers casually perusing through the press release, formatted as a two page letter, may not even make it to page two, for despite all the promise and excitement in the letter with regard to DelMar's progress in 2012 and upcoming catalysts in 2013, the company was privately held and not traded on the public markets. However, the second page of the letter noted the company's plan of a reverse merger with a public company, a cheaper and effective means of becoming a publicly-traded entity than a typical initial public offering (IPO). In a subsequent January 25th announcement, DelMar announced the first closing of an associated private placement. This closing plus subsequent closings netted gross proceeds of about $10.5 million and notified the public that it would begin trading on the OTCBB. Trading commenced shortly thereafter for the company as (OTCQB: DMPI).

VAL-083's History

DelMar's adventure with VAL-083 started with its October 2010 purchase of the chemotherapy agent from Valent Technologies, LLC, as noted in an October 2010 corporate update. DelMar went to work developing VAL-083 with an IND (investigation new drug) filing to the FDA to garner permission to initiate clinicals. On September 6, 2011 the company received the IND approval, and quickly went to work, announcing patient enrollment initiation in a dose-escalation phase I/II trial on October 25th for refractory (recurring) GBM. While the drug has no approval in

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