Eurogold to buy Swiss firm

01/12/2015 - 13:06

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A former gold mining company led by Peter Gunzburg has announced plans for a reverse takeover and backdoor listing of a Swiss biotech firm.

A former gold mining company led by Peter Gunzburg has announced plans for a reverse takeover and backdoor listing of a Swiss biotech firm.

Eurogold, which has been suspended from trading on the ASX since May 2013, has entered into an agreement to acquire Switzerland-based Bard1ag, which has developed a blood test for screening and diagnosing lung cancer at early stages of disease progression.

Under the terms of the deal, Eurogold will wholly acquire Bard1ag in exchange for about 206.6 million shares which, at the company’s last closing price in 2013 of 3 cents, is worth about $6.2 million.

It will also issue about 206 million performance shares, subject to the achievement of certain milestones.

“It is anticipated that the completion of the Bard1ag acquisition will result in a change of company name to ‘Bard1 Life Sciences Limited’ and the appointment of two new directors to the Eurogold board – Irmgard Irminger-Finger, and Geoffrey Laurent,” Eurogold said in a statement.

Mr Irminger-Finger is the head of the molecular gynecology and obstetrics laboratory at the University Hospital of Geneva, while Mr Laurent is a member of Bard1ag’s scientific advisory board.

They are both Bard1ag shareholders.

As part of the acquisition, Eurogold will be required to complete a $3 million capital raising at a price yet to be determined, in order to comply with ASX relisting rules.

Eurogold currently has cash reserves of $1.5 million.

It plans to complete the acquisition and begin trading under its new name and business model by March next year.

Eurogold’s executive chairman, Mr Gunzburg, announced last Friday his immediate resignation from the board of caravan and accommodation manufacturer Fleetwood, as the company foreshadowed a first-half loss of $5 million.

He also resigned in May from the board of Dragon Mining.

 

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