BIOPHARMICA
Biopharmica jumped a further 187.5 percent today on news of a share plan to spin-out Molecular Discovery Systems as stand-alone cancer drug company.
Biopharmica’s share price peaked at 32.5 cents, a 22.5 cents or 187.5 percent increase above yesterday’s close of 12 cents, itself a 140 percent rise on the previous day’s five cent close.
According to data from Commonwealth Securities, Biopharmica’s shares traded at a high of 32.5 cents at 10.19am.
Biopharmica closed at five cents on August 10, having closed on Friday August 7, 2009 at 2.6 cents. Over the past 12 months the company has traded between 1.8 cents and 4.5 cents.
Today, Biopharmica said it intended to seek an ASX initial public offering for investee company Molecular Discovery Systems, dedicated to the anti-mitotic drug discovery development program and the tumor suppressor gene HLS5 (BD: Aug 10, 2009).
Under the share plan and spin-off, Biopharmica would retain an interest in the company and its shareholders would receive a share at no cost in Molecular Discovery Systems for every listed Biopharmica share that they hold five days after the date of shareholder approval of the spin off.
The company said that an eligible Biopharmica shareholder can participate in the share purchase plan and receive the same number of shares at no cost in the Molecular Discovery Systems IPO.
The spin off and listing is subject to approval from shareholders and regulatory bodies. Biopharmica said the funds raised from the share plan would be used for continuing research and development, commercialization, additional working capital, funding the IPO and to meet anticipated expenses of the issue.
Eligible shareholders can purchase shares, at a 20 percent discount to the weighted average price of the last five days prior to the day on which the issue is made.
The plan offers a minimum of $1000 and a maximum of $15,000 worth of shares per shareholder and is limited to 30 percent of the existing share capital with applications “accepted on a first received basis”.
Biopharmica said the record date for the share plan was August 21, 2009 with a document dispatch date of August 24 and a closing date of September 24, 2009.
Biopharmica closed up 14 cents or 116.7 percent at 26 cents with 7.3 million shares traded.
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BPH Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
