Tissue Therapies bolsters cash reserves

Brisbane company Tissue Therapies (ASX:TIS) has bolstered its cash reserves through a placement of $1.46 million before costs to institutional and sophisticated investors.

Two million shares at a price of $0.73 were placed, by brokers ABN AMRO Morgans, which also managed the company's float earlier this year.

According to executive director Greg Baynton, the extra cash will supplement the $3.5 million raised in March during the company's IPO, allowing acceleration of the existing programs, and the flexibility to take advantage of new opportunities.

"With the appointment of our new CEO Stephen Mercer, we now have the capital to take advantage of opportunities he has identified," Baynton told Australian Biotechnology News. "And it gives us a longer time frame that we can budget for."

Baynton said the placement would provide sufficient funding through to 2007. The company plans to seek shareholder approval for the placement at the AGM in November, despite it falling under the 15 per cent cap that doesn't require approval. Baynton said shareholder approval would refresh the company's ability to raise extra capital if the opportunity should arise.

He said most of the placement went to institutional investors. "It's good for a little company to get quality shareholders -- it's important for the future," Baynton said.