http://www.thewest.com.au/20040825/business/tw-business-home-sto1...

http://www.thewest.com.au/20040825/business/tw-business-home-sto129169.html

Chemeq investors in the dark

MICHAEL WEIR

Chemeq shareholders were left in the dark last night as uncertainty tightened its grip on the embattled biotech's $55 million capital raising.

The company and its broker, Ord Minnett, remained locked in meetings, fuelling speculation they were still struggling to convince institutions and wealthy individuals to stump up the cash.

Chemeq was due to have bedded down the $12.4 million placement and locked away sub-underwriting for a $43 million rights issue yesterday, enabling the stock to resume trading this morning after a week-long suspension.

Chemeq founder and executive chairman Graham Melrose and Ord co-head of corporate finance Greg Pye did not return calls.

A source inside Ord Minnett said the firm was not prepared to comment until Chemeq could make a market announcement. But he refused to be drawn on when that might be.

It is understood the brokerage has struggled to drum up interest for the fundraising because of the distraction of the reporting season and a general lack of interest in the deal.

Ord is unlikely to sign off on the placement without getting substantial sub-underwriting commitments for the bigger rights issue. It is understood to have doubled its sub-underwriting fee to 3.5 per cent in a bid to attract backers.

Major Chemeq shareholders drove a push that led on Monday to the announcement Dr Melrose would quit his executive role and a new chief executive would be appointed.

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Cheers,

Fig Jam

I don't hold CMQ