Biotech company Chemeq Ltd announced today that it had achieved a gross revenue in excess of $4 million, and possessed over $28 million in cash reserves, satisfying the final milestone covenant in the convertible bond deed poll issued early last year.
The company, which expects to release its audited full year results in August, recently announced it would pay the $500,000 penalty suggested to the federal court by the Australian Securities and Investments Commission, for failing to disclose multi-million dollar cost blowouts on its Rockingham plant in 2003.
The company had previously posted a half-year net loss of $13.6 million as at December 31 2005.
All $60 million worth of Chemeq convertible bonds are currently held by US-based Stark Investments Ltd.
A full press released issued by Chemeq is pasted below:
Under the final milestone covenant in the convertible bond deed poll, Chemeq Limited (ASX: CMQ) was required to achieve gross revenue from all sources of at least $4.0 million for the year ended 30 June 2006 and to have liquid assets in excess of $24.0 million at 30 June 2006.
Chemeq is pleased to announce that it has achieved revenue for the financial year ended 30 June 2006 in excess of $4.0 million. This revenue was earned from product sales, interest and other revenue.
In addition, Chemeq currently has in excess of $28.0 million in cash reserves.
Chemeq expects to release its audited full year results in August.