CHEMEQ LIMITED 2003-06-25 ASX-SIGNAL-GHOMEX - Perth...

CHEMEQ LIMITED 2003-06-25 ASX-SIGNAL-G

HOMEX - Perth

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Pharmaceutical company Chemeq Ltd (ASX:CMQ) today announced that it
has raised $25 million to fund upgrades and expansion of its
manufacturing facilities.

The $25 million was raised by a placement, through Bell Potter
Securities Limited, of new ordinary shares at $5.35 to institutions
and sophisticated investors.

The funds will be partly used for previously announced upgrades and
expansion of Chemeq's 20 tonne per annum manufacturing plant,
currently under construction, as follows:

1. Expansion and upgrade, so that production will continue,
uninterrupted during periods of maintenance and cleaning;

2. Expanded warehousing and formulation areas of the manufacturing
facilities, to accommodate future productive capacities of 750 tonnes
per annum;

3. Upgrade from Food and Drug Administration (FDA) standards for
veterinary pharmaceuticals to potential manufacture of human
pharmaceuticals.

The funds will also be used to expedite the construction of an
additional 200 tonne per annum plant as soon as possible, following
the completion of the 20 tonne per annum plant within the facilities,
due for commencement of commissioning in October 2003.

These manufacturing facilities will produce Chemeq's unique
veterinary drug, CHEMEQ RTM polymeric antimicrobial, which supersedes
the use of antibiotics in animals for growth purposes.

Chemeq has already received pre-orders for its drug (at $1 million
per tonne); potential global market is estimated to be worth $10
billion annually.


For more information:

Andrew Dwyer Jane Cotter
COMPANY SECRETARY & CORPORATE FINANCIAL MANAGER COTTER COMMUNICATIONS
Chemeq Ltd (03) 9650 1955
(08) 9355 0099