NeuroDiscovery to acquire UK firm, list on ASX

NeuroDiscovery, a Perth-based neurology-focused biotech company, has lodged an IPO prospectus with ASIC to raise funds and acquire 100 per cent of NeuroSolutions, a UK-based service provider and drug discovery company.

NeuroDiscovery plans to offer 7.5 million shares at an issue price of AUD$0.20 each to raise $1.5 million. Oversubscriptions of up to a further 2.5 million shares at an issue price of $0.20 each to raise up to a further $500,000 may also be accepted.

Incorporated in April 2005 as an unlisted public company, under the name Concept Biotech, NeuroDiscovery subsequently raised $940,000 pursuant to two equity capital raisings. The purpose of the capital raisings was to enable the company to identify and evaluate investment opportunities in the life science sector.

NeuroDiscovery chairman David McAuliffe -- a former CEO of Xceed Biotechnology (ASX:XBL) -- said the board of directors had spent the last two months reviewing companies for possible acquisition or investment and secured an opportunity through the acquisition of NeuroSolutions.

"We were seeking to acquire or invest in a company able to provide revenue through its research development potential. NeuroSolutions provides us with this opportunity and also a pipeline of drug candidates," said McAuliffe.

Established in May 2001 at the University of Warwick, NeuroSolutions' most advanced program is expected to commence Phase I and II clinical trials in the next 18 months. NeuroDiscovery is also seeking to grow the company through other acquisitions and investments following the IPO.

The offer opens on July 11 and closes on August 1, with an expected listing date of August 9.