mcauliffe, towner propel bone medical

The key man behind the resuscitation of Bone Medical, David McAuliffe, is to received a "finder's fee" of 150m shares.

The reward was approved by BNE shareholders on Monday.

After BNE's 50 to 1 consolidation, McAuliffe will own 3m shares.

McAuliffe is a director of Martin Rogers' Oncosil Medical (OSL). OSL has an MC of $54m.

He is also a director of Living Cell Technologies (LCT). LCT has an MC of $34m.

McAuliffe is being paid a finder's fee because he "introduced the (recapitalization) proposal" to BNE.

The proposal has been put together by Robert Towner of Perth-based Cornerstone Capital.

Three years ago, Towner (pic), a former broker with Bell Potter, facilitated the merger the bioMD with Allied Health Group, now Admedus (AHZ). AHZ has an MC of $195m.

After completing the merger he resigned from the AHZ board in early 2012.
Now, he's looking to replicate the Allied/bioMD success at BNE.

He's joined the BNE board. And he'll replace Dr Roger New as chair
man.

“We think Bone Medical provides investors the opportunity to participate in technology which has had considerable existing investment," Towner says.

"Its product programs have great potential…

"If even just one of them achieves its planned milestones over the next six to twelve months,the growth opportunity becomes substantial.”

After the complex deal - which has led BNE to wean itself of its contentious relationship with La Jolla Cove Investors - BNE will have an issued capital of 216m shares and 32m options.

It will also have $3m in cash.

At present, BNE has an MC of $1m.