ONE time diamond miner Auridiam is to be used as the vehicle for a backdoor listing of Vacutex, which holds the intellectual property for a new type of wound care dressing.
The Vacutex product, which originates from the UK, is used to treat weeping wounds and has proven to be very successful.
Indeed, it has its own specific category on the UK’s National Health Scheme where it is known as a capillary action dressing.
One of the dressing’s main areas of use is in the treatment of wounds in diabetic patients.
The key to the dressing’s success is its action in removing moisture from the wound and keeping it away. It can absorb 30 times its weight in liquid.
The drawing action also accelerates the progress of healthy, infection fighting cells that help with the healing process.
An independent report completed at the Surgical Testing Materials Laboratory showed that the "wicking" capacity of the Vacutex dressing to be four times faster than the absorbency rates of a leading hydro-fibre dressing and three times faster than a leading hydro-cellular foam dressing.
Vacutex is registered with the Therapeutic Goods Administration registration and the company behind it is aiming for Food and Drug Administration approval.
An FDA approval would open the lucrative US market.
The company has already recorded sales of $4 million in the UK after about two years operation in that market.
Those sales have been effected by the fact that competitors’ products also have to be used in the treatment.
Normally a gauze layer is put over the wound and some other type of covering is put on top of the Vacutex dressing.
The company is planning to launch Vacuskin and Vacunet, two products that will remove most of the need for competitors’ dressings to be used in wound treatment.
There is also the Vacufoam product to come that can be used to help reduce bleeding. The Vacutex dressing cannot be used in the treatment of cuts and the like.
To make the Vacutex deal a reality Auridiam will reconstruct its shares and options on issue on a one for two basis and change its name to Acuron Limited.
Auridiam will buy all of Vacutex for $9.36 million that will be covered by the issue of new Auridiam shares at 20 cents each.
The company will raise $5 million through a prospectus that is due to be released in late May.
The company’s new board is to be made up of Churchill Capital director George Cameron-Dow, Auridiam finance director Stephen Belben and Auridiam director Kevin Ilich.
Both Mr Cameron-Dow and Mr Belben will be executive directors while Mr Ilich will be a non-executive director.
Mr Cameron-Dow said the company would be looking for a non-executive chairman and other independent directors who could help take the business forward.
He said the company had chosen to follow an Australian Stock Exchange listing because of its size.
When fully capitalised it will only be about a $10 million.
"Our plan is to get an Australian listing and then go back to the Alternative Investment Market in London. It’s actually easier and cheaper to get an AIM listing if you already have an ASX listing," Mr Cameron-Dow said.
Mr Belben said one of the attractions of the company was that its capital would not be needed to fund any research and development – that had already been done.
"The funds will be used for marketing and sales development," he said.
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