BioProspect to raise AUD$1.95m

Brisbane natural pesticide developer BioProspect (ASX:BPO) is planning to raise AUD$1.95 million via a share placement and rights issue.

The funds will be used to fast track the development of its lead compound AP778 for termite control, to invest in the company's IP portfolio and for working capital.

Under the placement BioProspect will issue 27 million shares along with a one for one free attaching option at $0.02 per share to raise $540,000. The options will be a new class exercisable at $0.05 per share on or before 30 June 2007. The options will be subject to shareholder approval at a meeting to be held in January 2006.

The rights issue will allow each shareholder the right to subscribe for one new share for every three shares held at the record date and is expected to raise approximately $1.41 million. The rights issue prospectus is due to be lodged in mid December and the offer will close in mid January.

BioProspect shares were trading at $0.031, down $0.005 at time of writing.