Probiomics launches share purchase plan

Probiomics (ASX:PCC), formerly VRI BioMedical, has launched a share purchase plan (SPP) which could raise AUD$2 million if fully subscribed.

The SPP allows eligible shareholders to purchase up to $5000 worth of new shares at an offer price of $0.075 per share -- an 8 per cent discount to the average price of Probiomics' shares over the five days up to October 25.

"We just wanted the shareholders to have the opportunity to buy at the same price that we're offering to the larger sophisticated investors," said Probiomics company secretary Paul Magoffin.

Probiomics has about 2200 shareholders but only 400 will be able to take up the offer of $5,000 shares due to the limit of $2 million placed on the SPP, said Magoffin.

Taylor Collison will underwrite the first $1 million of the SPP, subject to the finalisation of an underwriting agreement. The SPP closes on November 25.

Funds raised will be used for working capital, said Magoffin. "We're still in stage of developing our products and hopefully building up bigger and better sales, so we need to build inventory for ProTract and ProBio PCC," he said.

ProTract is a strain of Lactobacillus fermentum used for the treatment of irritable bowel syndrome, diarrhoea and general intestinal health and ProBio PCC is the brand name given to another probiotic dietary supplement distributed internationally for Probiomics by Pharmanex.