Proteome Systems boss critical of 'speculative' report

Proteome Systems CEO Keith Williams has described as "highly speculative" a media report this morning which suggested his company might be valued only at AUD$100 million when it lists on the ASX this year, rather than the $300 million valuation it had hoped for.

Williams said he would only comment on the report's claim that investors who bought convertible notes in an $8 million capital raising last year were likely to bring down the company's share price by selling out when it lists.

The 12-month notes are convertible at a rate 25 per cent less than the price of the initial public offering (IPO), and with a yield of 10 per cent, would fall short of the IPO price. But Williams said all but one of the convertible note holders were superannuation funds that had bought into Proteome Systems as a long-term investment, because they believed in its future -- so they would be unlikely to sell their converted shares when the company floats.

Williams said he had always attempted to be as open as possible with the press, but the company was currently laying low to focus on negotiations leading up to its IPO. "There are times when it's just not appropriate to comment, and this is one of them," he said. "What is represented as fact [in today's newspaper report] is largely speculation."

Technology awarded

Meanwhile, a chemical inkjet printer jointly developed by Proteome Systems and Shimadzu Biotech has been named as one of the 100 most technologically significant products introduced into the marketplace over the past year by R&D Magazine.

The ChIP technology, whose development was also supported by a Commonwealth R&D Start grant, is a technology platform for executing micro-scale on-membrane chemistry in biomedical research and biomarker discovery.

In a statement, Shimadzu Biotech chairman Dr Tetsuo Ichikawa said the award was "an exciting accomplishment" for the partnership. “Shimadzu Biotech has enjoyed the opportunity of working with Proteome Systems and the quality of the outcome of our efforts is evidenced in being selected for the R&D 100 award. Shimadzu is very proud,” he said.

Proteome Systems' chief scientist, Dr Andrew Gooley, said the prototype for the ChIP technology devised in Sydney before being developed for commercial release with Shimadzu. "Partnering with a quality scientific instrument manufacturer such as Shimadzu has been a very rewarding experience for our company,” he said.

The R&D 100 Awards have been presented annually for 42 years.