Chemeq raises $8m

Chemeq has raised $8 million in its latest placement to institutions and other sophisticated investors, bringing the total raised this year to $15.5 million.

"We did a small equity raising of about $5 million three or four months ago to institutions and sophisticated investors. Then we did a raising from our own shareholders of approximately $2.5 million and now the recent one for $8 million," explained CEO and chairman Dr Graham Melrose.

In addition, an option was provided with each new share issued in the latest placement, allowing investors to purchase another share at $2.30 between now and 31 January 2003. The options are transferable but will not be listed.

"We are optimistic that the additional $8 million in options will be substantially taken-up," said Melrose.

The funds raised in the placements are all being used to build Chemeq's new manufacturing plant in Western Australia, which will cost $25 million.

Melrose said that work was progressing well on the plant with the building phase having commenced.

"We are on track to produce commercial-scale quantities from our manufacturing facilities in early 2003," he said.

Chemeq's polymeric antimicrobial drug will be marketed initially in South Africa where it was recently approved for use in pigs, followed by Asia, Australia and other international markets subject to regulatory approval.