Eqitx CEO says 'no cash flow issues'

Melbourne-based Eqitx (ASX:EQX) was asked by the ASX last week to explain its financial position following the announcement it had invested a further $500,000 to increase its equity in vaccine developer VacTX.

"We put out the announcement on the Monday about VacTX, we expected the query from the ASX and responded quickly," said Eqitx CEO Sue MacLeman.

On Friday Eqitx announced it had completed a placement of 3.5 million ordinary shares at $0.20 per share. The placement was made to UK-based investors and arranged by the Eden Group and raised $700,000 to fully fund the further investment in the VacTX vaccine project and to provide additional working capital.

"Because we were in the middle of the placement we had a discussion with the ASX and put out the media release. We knew we were in the middle of the placement and knew that we didn't have a cash flow issue," said MacLeman.

"We have a lot happening in 2006. We have six projects with VacTX and they are going well. With ZingoTX we are in the pre-clinical toxicology stage and that will keep chugging along. We are also looking for a third acquisition in 2006 and that will be of a late stage company."