Nedlands-based Advanced Ocular Systems Ltd is looking to raise $2.4 million through a share placement, while setting its sights on something completely different - a residential subdivision investment in Westfield, south of Perth.
Funds raised from the issue of 80 million shares at 3 cents each will be used for working capital and the retirement of existing convertible note debt.
Subject to investor demand, the loss-making company will consider further subscriptions up to a maximum of $3.6 million.
In a departure from ophthalmology products, the company plans to invest $1.8 million in a 67-lot residential subdivision at Westfield.
AOS will have first rights to $3.6 million in profits and a further 50 per cent share of any residual profits above that figure.
With planning approvals in place and site works expected to commence in early 2008, the development is expected to be completed and fully sold by March 2009.
AOS said the property investment provided an appropriate risk to yield ratio for the company to continue its strategic objective of building balance sheet strength and to participate in future business opportunities.
The company expects to start its 2008 financial year with $19 million of eye care assets, about $2.8 million in cash and no liabilities.
