13/05/2015 - 11:51

Sun Biomedical buys Melbourne firm for $8.3m

13/05/2015 - 11:51

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Local biotech firm Sun Biomedical has announced plans to buy Melbourne-based Dimerix Bioscience in exchange for a share package worth about $8.3 million.

Sun Biomedical buys Melbourne firm for $8.3m
James Williams will become Sun Biomedical's new chairman if the deal is successful.

Local biotech firm Sun Biomedical has announced plans to buy Melbourne-based Dimerix Bioscience in exchange for a share package worth about $8.3 million.

Sun Biomedical is acquiring the unlisted clinical stage drug discovery and development company for 750 million shares, and will also issue 225 million performance shares, subject to the achievement of certain milestones.

The company said the acquisition would give it access to an asset with the potential to make a considerable impact in the treatment of chronic kidney disease.

In connection with the acquisition, Sun Biomedical has received firm commitments for a $1.6 million capital raising through the placement of 160 million shares at 1 cent each to sophisticated investor clients of Forrest Capital.

The proceeds of the placement will be used to fund the acquisition of Dimerix and provide general working capital.

If the deal is successful, Dimerix co-founder and former managing director of Resonance Health and Argus Biomedical, James Williams, will be appointed to Sun Biomedical’s board as executive chairman.

Mr Williams will bring fellow Dimerix board member Sonia Poli to the board as a director, while Sun Biomedical directors Evan Cross and Peter Webse will retire.

Sun Biomedical shares were unchanged at 1.1 cents each at 11:45am.

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