Polartechnics eyes US capital market

By Jeremy Torr
Thursday, 14 August, 2003

Capitalising on the successful release of its innovative Pap smear diagnostic into the European market, Polartechnics has dipped a toe into the US investment scene with the appointment of a New York investment banker as strategic advisor.

The company has appointed Global Markets Capital Group as its corporate advisor to, as Polartechnics executive chairman Anthony Grey put it, "access financial markets on our behalf".

Grey commented that the time had now come for the company to market its cancer and pre-cancer diagnostic platforms into the US market.

"We are ready now to expand into the US. This is a potentially very large market for us with both the MediScan image management system and the SolarScan skin cancer diagnostic device," he said.

Describing the move as a natural next step following the progression from R&D to marketing, Grey said the potential revenue was set to transform the company, Grey said the role of Global Markets would also extend to the task of locating strategic partnerships, and possibly distribution partners too.

"At the moment we are looking for people to work with. We will ultimately be looking at setting up a US subsidiary, but will work with a branch set-up for now," he said. "Global Markets will initially introduce US investors to our stock, and access the markets for us."

Grey agreed that the choice of Global Markets as advisor was influenced by the Australian expertise of its president, Mark Saunders, an expat Australian based in New York.

"We chose Global partly because [Saunders] is very familiar with representing the Australian market over there. He is familiar with the investors there that are predisposed towards Australia and Australian biotechs," he said.

The new team will concentrate on "increasing shareholder value and broadening Polartechnic's shareholder base" through the introduction of potential US investors, strategic partnerships and joint ventures. It will also look at the potential for M&A moves both in the US an overseas, said Victor Skladnev, Polartechnics' managing director.

"Global Markets Capital Group will assist us by locating strategic partnerships and distribution partners... as well as by helping us to position ourselves in the US to take advantage of merger and acquisition opportunities," he noted.

Global Markets' Saunders indicated that Polartechnics would be well received by US investors. " The US medical device sector will clearly recognize the growth potential for [Polartechnics], particularly considering... initial market penetration into Italy and anticipated penetration into the rest of Europe," he said. Saunders claimed the European market offered a vast potential, with $1.5 billion worth of cervical pre-cancer tests performed per year.

However, Polartechnics has no immediate plans to list on the Nasdaq, although it is certainly on the event horizon, said Grey.

"We will look at the possibility of both VC input and a Nasdaq listing sometime further down the track. It is certainly our intention to [list]," he added.

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