a bounce soon or long term hold

Code SIE Last5.9 Ask 6


Driven down by the new placement but
could be worth a look at these prices for the patient one




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SciGen has $16.4m capital planSeptember 1, 2004

Biopharmaceutical firm SciGen wants to expand its strategic relationship with pharmaceutical firm Shreya through a capital raising worth up to $16.4 million.

Singapore-based SciGen said it would place 22 million shares, or five per cent of issued capital, at seven cents per share with Shreya, which has operations in India and Russia, by mid-October 2004.

SciGen will also make a one-for-four non-renounceable rights issue to be offered to all SciGen shareholders at six cents per share.

To the extent that Shreya's shareholding after the initial placement and rights issue is less than 24 per cent, SciGen has undertaken to place extra shares with Shreya at the rights issue offer price to bring its shareholding up to 24 per cent of the expanded capital.

The initial and final placements and rights issue will raise a minimum of $11.2 million and a maximum of $16.4 million.

Shreya chairman Sujit Kumar Singh and director Ajit Bhaskar will be invited to sit on the SciGen board.

SciGen chairman Paul Freiman said Shreya had a growing global presence and an annual turnover of $US500 million.
model and product portfolio is expected to increase shareholder value," Mr Freiman said.







"The financial support that this transaction brings is expected to be sufficient to fund SciGen through to a cash flow and earnings positive position."

Mr Freiman said the cash injection would enable SciGen to explore new product licensing opportunities, new drug formulations and delivery systems, and clinical development opportunities.

SciGen shares were 0.5 cents lower at 6.5 cents on Wednesday.