Document date: Wed 04 Sep 2002 Published: Wed 04 Sep 2002 10:51:07 Document No: 222414 Document part: A Market Flag: Y Classification: Placement , Issued Capital - Other , Progress Report - Other BIOPROSPECT LIMITED 2002-09-04 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ The Board of BioProspect Limited is pleased to announce that it has received some preliminary data from the field trials being performed with Qcide, the natural insecticide.
The trials performed in the USA to date show that Qcide is showing very high activity against a range of hard-to-kill pests. Tests have been performed on almond, citrus and cotton crops, and Qcide has proven to be very effective at low concentrations. Whilst these results are only preliminary, they are extremely encouraging and support the laboratory and greenhouse tests previously performed at the University of Western Sydney.
Field trials continue in other northern hemisphere locations and BioProspect expects to receive further results during September and October. Southern hemisphere-based trials are expected to commence in October as the temperature conditions and insect pressures increase.
Upon completion of further field trials, BioProspect anticipates entering into commercial arrangements for exclusive rights to Qcide early next year. Due to the large size of the targeted markets, BioProspect believes that based on the initial trial results it will be able to negotiate substantial upfront license fees, milestone payments and ongoing royalties.
SHARE PURCHASE PLAN
The Board believes that the development of Qcide is now at the point where further funding towards the commercialisation of the product is warranted. In order to raise funds required for Qcide, the Company will introduce a Share Purchase Plan (the "Plan") that will enable existing shareholders to purchase new shares in BioProspect on favourable terms to the existing market price.
Following past placements to clients of major stock broking institutions, the Company received a number of requests from Shareholders to participate in any further capital raisings. As a result, the Board resolved to pursue the Plan, which particularly benefits smaller shareholders.
The Plan entitles each BioProspect shareholder, irrespective of the size of their shareholding, the right to purchase up to $3,000 worth of fully paid ordinary shares in BioProspect at a 15% discount to the market price, free of all brokerage, commission and stamp duty to the subscriber. The minimum subscription under the Plan is $1,000.
The Board of Directors of BioProspect has appointed Findlay & Co Stockbrokers Limited as Sponsoring Broker to the Plan.
In order to participate in the Plan, you must be an Eligible Shareholder with a registered address in Australia or New Zealand as at the Record Date of 5pm WST on Monday 16 September 2002.
The shares will be issued at a 15% discount to the weighted average market price of the shares for the five trading days up to and including the closing date of the issue, being Friday 18 October 2002.
The detailed terms and conditions of the Share Purchase Plan will be forwarded to shareholders in due course.
SHARE PLACEMENT
The Board is pleased to announce that it has completed a placement of 2,777,777 ordinary fully paid shares to Findlay & Co Stockbrokers Limited at a price of $0.09 to raise $250,000. The monies raised will be used for working capital purposes.
Please find attached an Appendix 3B in regard to this issue.
In accordance with ASIC Class Order 02/334, the Company advises that there is no information to disclose of the kind that would be required to be disclosed under subsection 713(5) of the Corporations Act, if a prospectus were to be issued in reliance of section 713 in respect of the issue.
