Thoroughbred specialist to raise up to $4.25 million in backdoor listing

South Australian-based Vet Biotechnology (NSX:VBL) is aiming to raise up to AUD$4.25 million in capital to fund development of a vaccine against 'rattles' disease in racehorses by a backdoor listing on the ASX in late November through Plantcorp.

Vet Biotechnology's focus is on the development of a vaccine and diagnostic for the long-term management of Rhodococcus equi disease, known in the thoroughbred breeding industry as 'rattles'. Last year Vet Biotechnology entered into an exclusive agreement with UK-based VetCell BioScience to commercialise new stem-cell-based services for equine tendon and ligament injuries. Vet Biotechnology is also conducting research to develop a non invasive breath test for the detection of equine gastric ulcer syndrome which affects between 60-90 per cent of performance horses.

The offer opened on 21 October and closes on 21 November with a minimum of 16.25 million shares being offered at an issue price of $0.20 each with a free attaching option. The offer allows 5 million shares in oversubscriptions. Vet Biotechnology is expected to list on 28 November, the company's market capitalisation on listing including over subscriptions will be $13.796 million. The prospectus is conditional upon the outcome of a takeover bid launched for Vet Biotechnology by Perth-based Plantcorp. Following the successful merger, capital raising and listing Plantcorp will be replaced by Vet Biotechnology directors and management and the company will change its name to Vet Biotechnology.

"To date we have focused on the thoroughbred industry and we plan to expand our research programs to meet the thoroughbred and sporting horse needs," said Vet Biotechnology general manager Hugo Le Messurier. "The funding will be used for continued research and development of the rattles vaccine and diagnostic and breath test diagnostic. In addition we will use funds to finance a joint venture with VetCell Bioscience to extend the stem cell services into the US market -- which is the single largest market in the world. We will also finance an investigation to extend the stem cells services to New Zealand."

Vet Biotechnology offers both tendon treatment -- a mesenchymal stem cell service for regeneration of equine tendons and ligaments and a stem cell storage service of umbilical cord derived stem cells collected from the umbilical cord at foaling, which provides an insurance policy in case of future injury.

"Capital raised will also be used to acquire other technologies for other animal markets including companion animals -- dogs and cats and economic animals such as cattle, sheep, pigs and poultry -- we research the markets, understand the major unmet needs and find technologies to deliver biotech solutions."

The offer is fully underwritten by Martin Place Securities in Sydney.