Chemeq on the fundraising trail

Perth-based pharmaceutical company Chemeq (ASX: CMQ) has raised almost $5 million from institutional investors and hopes to reap a further $5 million from ordinary shareholders by the end of the month.

The company, which plans to put the cash towards its new manufacturing facility, announced its share placement, at the time priced at a 20 cent discount to the market, had raised $4,660,000 before costs.

Company secretary Andrew Dwyer said a share purchase plan to ordinary shareholders, which was open until May 31, was expected to bring in an extra $5 million for the new Rockingham facility.

"We will have to source an additional $10-15 million within 12 months and we will continue searching and talking with all interested parties," Dwyer said.

The facility, which is to be built to pharmaceutical and FDA standards, will incorporate manufacturing, formulation and warehousing within the 8-hectare site.

The first product expected off the line at the new plant, which is due to be commissioned at the start of next year, will be a polymeric antimicrobial for the pig and poultry market.

The company plans to first sell the product within the Asian market before branching out globally.

Since issuing its share placement at a discounted price of $2, Chemeq's shares have softened, slipping to a low of $1.70 today before scaling back up to the $2 mark at the time of writing.

But Dwyer said the company was not concerned, adding that it remained a "good valued stock" that was still attractive to investors.

The company also today announced the appointment of three new staff to assist the growth of the company and facilitate the building of its new plant.

Dr Robert Radford, who brings to the company 30 years of experience as a petrochemical and mineral processing chemical engineer, will join Chemeq as principal engineer.

Dr Matthew Tilbrook, formerly a post-doctoral research chemist at Cambridge University, will be the company's new senior research chemist.

Dr Hung Pham, a specialist in the development of chemical processes to commercialisation, becomes the company's senior engineer.

Announcing the appointments, Chemeq chief executive officer Dr Graham Melrose said the company was delighted to have scientists of such high capabilities join its team.

"Their combined knowledge and ability will have a significant, positive effect on the future development of the company," Melrose said.