Biota aims to raise $10m

Melbourne-based Biota Holdings (ASX:BTA) is aiming to raise more than AUD$10 million in a non-renounceable share offer to existing shareholders.

Under Biota's share purchase plan, shareholders will be offered up to $5000 of new, fully paid ordinary shares at a price of $0.76 per share.

"We've done our share purchase plan for the last two years. It's an easy mechanism to reward your existing shareholders," said Biota CFO and company secretary Damian Lismore. "Last year we raised nearly $20 million, the previous year we raised about $8 million. So I would suggest [this year] we would raise $10 million plus."

Biota has a shareholder base of nearly 15,000 but shares will only be offered to its Australian and New Zealand shareholders, said Lismore. "Just under 5000 shareholders took up the offer last year," he said.

Biota's share price has been boosted in recent months following the stockpiling by various governments worldwide of Relenza, the anti-flu drug developed by Biota and commercialised by GlaxoSmithKline.

The money raised by the share purchase plan will support three of Biota's pre-clinical stage programs - its influenza (long-acting neuraminidase inhibitors or LANI), common cold (human rhinovirus or HRV) and infant bronchiolitis (respiratory syncytial virus or RSV) programs -- into human clinical trials.

The share purchase plan closes on October 26.