Select Vaccines to raise $1.79m

Melbourne's Select Vaccines (ASX:SLT) is planning to raise AUD$1.79 million through a rights issue and placement to provide working capital for the development of a vaccine against hepatitis C and further development of diagnostic assays.

The non-renounceable pro-rata rights issue will allow each shareholder the right to subscribe for one new share for every four fully paid shares held on December 1 at a price of $0.16 per share. The rights issue is expected to raise $1.73 million and the closing date is December 19.

Under the placement Select Vaccines will issue up to 3.75 million shares to no more than 20 shareholders also at a price of $0.16 per share to raise an additional $600,000.

In November Select Vaccines released positive data from its hepatitis C vaccine program which showed that a strong immune response is obtained in mice with one small dose of the vaccine. Prior to entering clinical trials of a hepatitis C vaccine the company will need to extend its studies to a larger animal species. It will also be necessary to source a manufacturer of the vaccine material and to undertake toxicology studies.

The offer is fully underwritten by Taylor Collison.