Biota launches share purchase plan

Biota (ASX: BTA) has launched a share purchase plan, which could raise almost AUD$15 million for the company if fully subscribed.

The plan, which CFO Andrew Macdonald said was as much for the company's 16,000 retail shareholders as for its own benefit, allows eligible shareholders to subscribe up to $5000 for new fully paid ordinary shares at a price of $0.50 per share -- a 10 per cent discount to the volume weighted average share price in the five days immediately prior to the record date of September 15.

"It's an opportunity for shareholders to top up at a good price while the litigation [with GlaxoSmithKline] is in process," said Macdonald. "It's good for us and it's good for the shareholders to have these plans running."

The capital raised will be used to advance Biota's common cold drug into clinical development, and to facilitate the consolidation of the US research operations into the company's new facilities near Melbourne.

A similar share purchase plan last year raised $8.5 million for the company at a share price of $0.52.