Chemeq project secures further share funding

LOCAL pharmaceutical company Chemeq has raised a further $2.75 million through its share purchase plan and recent placements with institutions.

The company has raised almost $7.5 million in the past three months to support the construction cost of its manufacturing facilities.

Chemeq chairman and chief executive officer Graham Melrose said the support was a significant endorsement of the company.

“As 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,” Mr Melrose said.

It is understood Chemeq is on track to make another announcement about further capital raisings within the next two months.

“From our point of view it would be better if we could raise the funds all in one hit,” Chemeq company secretary Andrew Dwyer said.

“We’re looking at putting some significant parcels forward and we’re continuing to talk to the institutions.”

He said the institutions have adopted a watch and wait stance.

“When we went to the institutions in the past six months they asked ‘who is this Chemeq and how did we miss it?’,” Mr Dwyer said.

“Because it’s all new they look at it as a company that’s risen pretty quickly and in their minds it could fall just as quickly.

“They like the story. They’re just looking for a track record.

“As time passes a few will start to perceive a reduction in the risk.”

Chemeq plans to start commercial production of its polymeric antimicrobial early in 2003.