Bone Medical in dermatology move

Perth-based Bone Medical has made a second attempt at a backdoor listing, today announcing plans to acquire a US dermatology company and adopt its business model.

Bone Medical will wholly acquire US-based Botanix Pharmaceuticals in exchange for about 153 million shares, which at the company’s opening share price is valued at about $918,360.

Botanix is developing new prescription products using a synthetic form of cannabidiol to treat serious skin diseases.

As part of the acquisition, Bone Medical has engaged Argonaut to manage a $3 million capital raising, priced at 2 cents per share, in order to comply with ASX relisting rules.

If the deal is successful, Bone Medical will change its name to Botanix Pharmaceuticals upon relisting.

Non-executive directors John Hannaford and Phillip Wingate will retire from Bone Medical’s board, while existing chairman Robert Towner will remain as a non-executive director.

Three nominees of Botanix will be appointed to the new company’s board.

The company hopes to be relisted by early June.

In November last year, Bone Medical backed out of plans to acquire geospatial data intelligence firm Takor Group after a binding term sheet expired.

Bone Medical shares were 16.6 per cent higher to 0.7 cents each at 10:45am.