reason for the rise in share price?

Former Chemeq director, Graeme Major, has labelled an independent expert's report on a funding deal as "pessimistic". Mizuho International'sproposed funding deal would grant Mizuho up to 47 per cent of Chemeq.

KPMG's report on the funding proposal detailed the risks Chemeq faces in its plans to commence sales of its anti-microbial drug. In mid-March 2005, Major, who owns five per cent of the Australian veterinary drugs manufacturer, issued a letter to Chemeq shareholders.

Major dismissed KPMG's report onthe proposal as a "one-sided presentation". Chemeq will hold a general meeting on 23 March to discuss the funding deal