CHEMEQ RAISES ADDITIONAL $2.75 MILLION THROUGH SUCCESSFUL SHARE PURCHASE PLAN
Perth, W.A. - Tuesday 11 June 2002 - Research-based pharmaceutical company Chemeq Ltd [ASX: CMQ] today announced that it has successfully raised approximately $2.75 million from its Share Purchase Plan. Combined with recent placements to institutions and other sophisticated investors, Chemeq has raised approximately $7.5 million in the past three months.
The company's Share Purchase Plan entitled each existing shareholder to buy up to $3,000 worth of ordinary shares at $2.00 per share. The offer closed on 31 May 2002.
"We are delighted by the response to our Share Purchase Plan," said Dr Graham Melrose, Chairman and Chief Executive Officer of Chemeq. "We see this support as a significant endorsement of the company.
"As one part of our financing strategy, we wanted to give shareholders the opportunity to participate in the capital raising at the same price that sophisticated investors and institutions invested under a placement announced in late April. We have now completed the first stage of our capital raising."
The funds raised will be used to support the construction of Chemeq's manufacturing facilities, which are being built and financed in stages.
The manufacturing facilities are being built to internationally approved US Food and Drug Administration (FDA) standards on an 8-hectare site. The plant will produce all requirements of the company's main pharmaceutical, CHEMEQRTM polymeric antimicrobial, to 2006/7.
CHEMEQRTM polymeric antimicrobial is an alternative to the use of human antibiotics in animals. Excessive use of antibiotics in animals, for growth purposes, produces antibiotic-resistant germs or "super-bugs" which find their way back to humans via the animal-food chain. Antibiotic-resistance is a major problem to hospitals around the world.
"We are on track to produce commercial-scale quantities from our manufacturing facilities in early 2003. Initial output will be exported to Asia, with Australia and other international markets to follow", said Dr Melrose.
For more information
Company Website: http://www.chemeq.com.au
Chemeq Ltd Andrew Dwyer Company Secretary email: [email protected] voice: +61 8 9355 0099 Cotter Communications Jane Cotter
voice: (03) 9650 1955
CMQ Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
