media coverage re: capital raising

PNO media coverage after the capital raising announcement.

Article
Pharmanet Group (ASX: PNO) will raise up to A$2.13 million through a placement of 160 million shares at $0.007 per share, and a non-renounceable pro-rata rights issue, for working capital purposes.

CPS Securities has agreed to underwrite the rights issue to eligible shareholders to raise up to A$1.013 million through issuing one new share for every eight shares held at $0.007 per share.

Pharmanet and its group of companies are focused on products, drug development and cosmetic opportunities. The company has recently had an Australian patent allowed for the use of the company's active ingredients in the analgesic and anti-inflammatory fields.

In June, subsidiary Thermalife International Phermaceuticals Pty Ltd entered into a "charge through agreement" with major Australian pharmaceutical wholesaler Sigma Healthcare, for the processing of invoices on behalf of Sigma customers.

The placement comprises two tranches. Tranche one will raise $700,000 through placing 100 million shares with, subject to the approval of shareholders, one attaching option for every two placement shares subscribed for no additional consideration.

Subject to the approval of shareholders, tranche two will raise $420,000 through placing 60 shares with one attaching option for every two placement shares subscribed for no additional consideration.

Applicants for new shares will also be issued one new option for every two new shares subscribed for under the entitlement offer at no additional cost. The record date is expected to be in August 2011.

Subject to shareholder approval, an offer of options will also be made to eligible option holders on the basis of one option for each eight options held on 30 June 2011 (which have now expired) at the price of $0.0001 per option.

Also subject to shareholder approval, the grant of 100 million options will be made to CPS Securities in consideration of them acting as lead manager and underwriter.