Chemeq silent on ASIC query

Perth veterinary drug developer Chemeq Limited (ASX:CMQ) has announced it will issue a replacement prospectus after the Australian Securities and Investments Commission placed an interim stop order on the prospectus it issued late last month for a rights issue to raise $9.94 million.

Chemeq’s founder and chief executive, Dr Graham Melrose, declined to elaborate on the problem with the original prospectus, saying it was "a matter between Chemeq and ASIC".

The announcement said ASIC had reviewed Chemeq’s prospectus and had “expressed views in relation to certain statements” in it.

The company said Chemeq did not necessarily agree with the positions adopted by ASIC, but would work with ASIC to resolve the issue as quickly as possible, so that a replacement prospectus could be lodged, the interim stop order lifted, and the proposed timetable for the rights issue not substantially affected.

The financially troubled company ended a two-week trading suspension on the ASX last week by announcing it had successful placed 4.1 million shares at $2.40 per share, and would make a underwritten, renounceable rights issue offering shareholders one new share for every 11 shares they already hold, exercisable on June 30 next year.