Biosignal to raise $1m in placement

Sydney-based Biosignal (ASX:BOS) has revealed plans to raise AUD$1 million for additional working capital, as it prepares to take its biofilm technology into contact lens clinical trials.

The capital will be raised in the form of an issue of new shares and options, after a placement arrangement was formalised with Taylor Collison.

About 5.8 million new shares and 2.9 million new options will be offered at a placement price of 17 cents each with one free option for every two shares acquired. The options will have an exercise price of $0.20 each and will lapse on 31 December 2006. The shares and options will rank equally with existing shares and options and will be listed.

These new issues represent less than 15 per cent of Biosignal's issued capital, so prior shareholder approval is not required. However, approval will be sought from shareholders at the company's 2005 AGM to enable the company to issue more securities in future.