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PharmAust facing board, funding pressure

WELSHPOOL-BASED pharmaceutical manufacturer PharmAust Ltd is seeking to finalise an urgent refinancing after shareholders rejected an $825,000 capital raising and moved to dump the company’s current directors. A shareholder has requisitioned a general meeting to vote on the removal of long-standing director Bryant McLarty and recently appointed director Simon Owen. The notice proposed the appointment of Peter Remta, Brian John and Owen Coote as directors of Pharmaust. It was sent to Pharmaust on August 22, one day before the company announced that Wembley Downs pharmacist Henry Gulev had agreed to join the board. That followed the resignation from the board earlier this month of managing director Paul D’Sylva, who moved to the US early this year, and non-executive director Wayne Best. The notice was sent to Pharmaust two days after shareholders rejected the issue of 8.25 million shares at 10 cents each to CAMOFI Master LDC. Shareholders voted 21.4 million against the proposal with 12.6 million in favour. The company said after the shareholder meeting that it was considering a range of funding options, including a rights issue to raise up to $3.5 million. It said last week that its current credit facility with the National Australia Bank expired on July 31 2007 and was extended for a further month pending a review by NAB of the company’s ongoing financing capacity. The company has negotiated and accepted a facility with a new, unnamed, lender that provides up to $300,000 of working capital. The lender has conditionally agreed with NAB to take an assignment of the NAB’s entire position and to extend the facility for a further 12 months on the same terms and conditions as those existing with NAB. Mark Beyer

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