Benitec speculation leads to speeding ticket

Licence discussions between RNAi specialist Benitec (ASX:BLT) and an undisclosed party caused Bentiec's share price to rise from $0.135 on September 8 to $0.17 on September 9, the company has told the ASX.

Benitec today went into a trading halt following the 'speeding ticket' issued by the ASX.

Benitec's confidential discussions, which have been ongoing for some months, relate to "an incomplete proposal which is the subject of ongoing negotiations" with an unnamed party wanting to purchase intellectual property rights as well as providing Benitec with cash by way of a share issue and options, Benitec chairman Raymond Whitten told the ASX in a letter.

Shareholders' approval will be required for the issue of shares and options and Benitec will release information to the market when and if an agreement is reached.

Whitten also said that Benitec is expected to make a net consolidated loss of between $12.5 million and $14 million for the financial year ended June 30.