Select Vaccines aiming to raise $1.8m

Select Vaccines (ASX:SLT) is planning to raise up to AUD$1.8 million in a private placement to support its R&D programs.

The placement of up to 6 million shares at $0.30 will increase the total number of issued shares by 24 per cent, and will require shareholder approval. Managing director Dr Martin Soust said approval would be sought at the company's next AGM, which is currently scheduled to take place on May 19.

In the near future, he said, the funds would be used primarily to support the rapid diagnostics program as well as the antivirals and vaccine development programs. Rapid tests for hepatitis E and hepatitis A have been developed and licensing partners expected to be announced for both tests later this year, while a test for hepatitis C is in development.

Soust said the company expected the funds to last for at least two years, depending on when the royalties from the rapid diagnostic tests begin to roll in. "We felt now was a good time [to do a placement] -- we didn't want to go too low in our cash/assets position," he said.

Shaw Corporate Finance and Peregrine Corporate are managing the placement.