CSIRO halves GroPep investment

By Renate Krelle
Tuesday, 15 June, 2004

The CSIRO -- formerly the largest shareholder in Adelaide-based biopharma GroPep (ASX:GRO) -- last week halved its shareholding in the company, selling 5 million shares valued at just under $3.5 million.

The sale reduces the CSIRO's GroPep shareholding from 19.82 per cent to 8.56 per cent.

"The decision to sell GroPep shares was part of a broader policy decision regarding the timing and construction of our equity portfolio," said CSIRO's commericalisation director, Nigel Poole.

"The CSIRO is not a long-term holder of equity. Its role is to conduct research. [The sale] was not a view on GroPep's performance or value or future performance. We're proud and delighted with the current progress and look forward and happy to step out at an appropriate time -- which this was thought to be."

GroPep's CFO, Tony Mitchell, said the sale would free up the company's share register and improve the liquidity of the stock "They haven't expressed any concerns, and they see it is a normal evolutionary process," he said.

Poole said that the CSIRO portfolio included more than 40 equity holdings. In addition to its remaining GroPep shares, it has investments in ASX-listed companies Ambri, Xceed Biotechnology, and Australian Magnesium Corporation.

In April, GroPep posted its fourth consecutive quarter of positive operating and net cash flow. Strong customer receipts of $4.2 million, plus operating cash payments of $2.8 million, swelled the company's cash holdings to $11.2 million at the end of the March quarter.

Related News

Mouth bacteria linked to increased head and neck cancer risk

More than a dozen bacterial species that live in people's mouths have been linked to a...

Life expectancy gains are slowing, study finds

Life expectancy at birth in the world's longest-living populations has increased by an...

Towards safer epilepsy treatment for pregnant women

New research conducted in organoids is expected to provide pregnant women with epilepsy safer...


  • All content Copyright © 2024 Westwick-Farrow Pty Ltd