VosTech biotechnology plan provides food for thought

FOOD-FRYING technology developer VosTech Ltd will no longer focus on the creation of the finest fried foods on offer, deciding instead to move into the arena of investments in animal health biotechnology.

VosTech intends to take over Brightsun Investments Pty Ltd – with that company’s support – for $1.6 million, to be satisfied by the issue and allotment of 160 million VosTech ordinary shares at an issue price of one cent each.

As part of the transaction, VosTech hopes to raise $500,000 from Brightsun shareholders, who will be able to subscribe for 50 million ordinary VosTech shares at an issue price of one cent per share.

Brightsun is focusing on the research, development and commercialisation of biological solut-ions for companion and production animals. These biological solutions are intended to improve the health and welfare of animals, increase productivity at an economical cost, and reduce the use of chemicals and drugs, particularly antibiotics in production animals.

If the above transactions proceed, Graham Dowland and Dr Warwick Lamb, the current executives of Brightsun, will be appointed to the board of VosTech as managing director and executive director respectively. David Steinepreis and Richard Poole will resign upon completion of the transactions.

VosTech will also undertake an underwritten, non-renounceable entitlement issue to existing share-holders, through the offer of two new ordinary shares (at one cent per share) for every five existing ordinary shares held to raise funds for working capital.

The issue is underwritten and will raise $1,021,712, before expenses.

This latest round of share issues has forced VosTech to seriously consider reducing its issued capital within the next year. With nearly 570 million shares on issue following the completion of the transactions, the company is likely to consolidate its capital to reduce the outstanding issued shares to 76 million shares.