PHARMACEUTICAL company Chemeq has deferred the planned expansion of its Rockingham drug factory after being forced to scale back its capital raising from $50 million to $30 million.
The recently completed factory has a design capacity of 20,000 kilograms a year and the company has already spent $10.3 million to lift production capacity to 50,000kg.
However the remaining $9.7 million to be spent on the capacity expansion has been deferred until after July 2005, and is subject to the company raising extra funds via the exercising of share options.
Chemeq announced last week it would raise $30.1 million through a placement and an underwritten rights issue pitched at a deeply discounted price of $2.40 per share.
The proceeds will be used to support production and sales activities
Its previous capital raising, which brought in $10 million in June, was pitched at $4.55.
