Following the Western Australian tradition of small cap stocks reinventing themselves, Perth-based biotechnology company EQiTX Ltd will take an 80 per cent stake in five Indonesian mineral permits under a plan to become as a coal producer and explorer.
The move is consistent with moves by many other local companies, which have shown flexibility when it comes to investment focus. In the late 1990s, numerous exploration players became internet businesses. Some reverted to resources after the tech crash, while others sought new sectors to focus on.
Many WA companies have morphed from one sector to the next on multiple occasions.
Another recent reinvention was former wound care products company, Perth-based Acuron Ltd, which sought in June to raise $15 million for the acquisition of two consulting services.
Acuron announced it would divest the wound care subsidiary, Protex Healthcare (UK) Ltd, for a move into environmental risk consulting. To this end, it bought Melbourne-based risk management consulting group Noel Arnold & Associates for $16.25 million, and Perth-based environmental consulting service ENV Australia Pty Ltd for $6.75 million in cash and scrip.
EQiTX, which first listed as Decade Resources NL in 1994, had undertaken a review of the rationale behind its biotechnology business and has since been looking to expand development of pain treatment company ZingoTX and synthetic peptide vaccine technology developer VacTX with commercial partners.
While the company writes that discussions are ongoing with regards to an investment in VacTX, as well as another international organisation with regards a potential investment in ZingoTX, the EQiTX board has decided to carry out an in-specie distribution of these assets to shareholders, subject to their approval.
The EQiTX biotechnology assets will be held in a public entity that will have a board to oversee the two projects and the opportunities that develop for their potential commercialisation.
