This is from Biotechnology News 25 May 2010, cross-posted from...

This is from Biotechnology News 25 May 2010, cross-posted from CZD forum.

Calzada eyes Avexa cash

Amanda Ellis
Tuesday, 25 May 2010

AVEXAS cash balance has caught the attention of Calzada, which has taken a 12.07% stake in the former ATC developer for $A3 million.

On Wednesday, investment manager Orbis sold its substantial stake in Avexa at an estimated $6 million loss, selling 47.7 million shares for $1.5 million at approximately 3.09c a share.

Appearing in its place on the share registry was Calzada, which paid $3 million to pick up 102.4 million shares with an average price of 2.92c.

Calzada executive chairman David Franklyn said Calzada engaged a broker to do the buying and that it was fair to assume part of the holding came from Orbis.

Franklyn told BTN Calzada had set an objective to work with the Avexa board and had not formed an opinion on how it will vote at an upcoming shareholder meeting.

We feel Avexa is an interesting situation, given what has happened with its technology and cash balance, and we have bought a position with the objective of working with, and discussing with, the existing board the appropriate future directions for the company, he said.

Avexa is currently trading under cash with a market capitalisation of approximately $25.3 million yesterday and cash reserves of approximately $26.6 million.

Earlier this month the company estimated it would have $23 million by the end of the June quarter after it handed out redundancies, restructured and paid liabilities.

Franklyn said until Calzada took a closer look and engaged with the company, it was hard to be too specific about what the next steps may be.

By the end of this month, Avexa chief executive officer Julian Chick will step down and the company will finish making redundancies.

The company is currently conducting a strategic review to determine its future.

Avexa chairman Nathan Drona told BTN the board was pushing ahead with its review.

We've been literally working around the clock to expedite a quality solution for shareholders, he said.

As the company announced the retirement of director Joe Raini and the appointment of new director Uri Ratner on Thursday, it revealed a shareholder meeting would be called later this month.

The notice proposed a number of motions, including the removal of chairman Nathan Drona as a director and the appointment of Steven Crowley and Bruce Hewett as directors.

Franklyn told BTN Calzada had not yet formed an opinion on a number of motions to be voted on at an upcoming general meeting, including whether chairman Nathan Drona should be removed.

Its a bit early yet, he said.