NZ company BrainZ to list on ASX in December

New Zealand medical device company BrainZ Instruments, which develops monitors for the detection of brain injury, has lodged a prospectus for an IPO to raise up to AUD$13 million on the ASX.

BrainZ's lead product, the BRM2 Brain Monitor is a portable bedside lectroencephalograph (EEG) that can be used to detect changes and abnormalities in the cerebral function of patients in neonatal and paediatric intensive care units. Initially the device will target newborn and paediatric care.

"A public listing appeared to be the most suitable option for BrainZ," said CEO Justin Vaughan. "Obviously the Australian market has a good experience and appetite for companies seeking capital -- it is a proven global performer and suitable for emerging device companies. It appears there has been substantial demand from institutions and retail managers following our most recent roadshows.

"In October 2004 BrainZ signed a two-year US distribution agreement with GE Healthcare to distribute the BRM2 Brain Monitor throughout the US with rights for other major markets. The funds will be used to support the scale-up of the GE deal and extending the R&D platform into new applications for the monitor, mainly in adult markets," he said.

BrainZ was established in 2001 to develop the technology invented by Assoc Prof Chris Williams and his team at the University of Auckland and was originally a subsidiary of NeuronZ, now trading as Neuren pharmaceutical (ASX:NEU). In September 2002, the company was wholly acquired by Tru-Test, a multinational company specialising in electronic technology solutions.

The BRM2 Brain Monitor was granted TGA approval to be sold in Australia in 2002, was granted FDA approval in 2003 and CE mark approval in 2004. There are currently more than 100 monitors in use globally.

The offer is due open on November 10 and close on November 30 with a minimum 20 million shares being offered at an issue price of $0.50 each. Oversubscriptions of up to a further 6 million shares at an issue price of $0.50 each to raise up to a further $3 million will also be accepted. BrainZ is expected to list on December 13 and based on the offer price, the company's market capitalisation on listing will be $30 million including oversubscriptions.

The offer is being lead managed by JT Campbell & Co in Melbourne.