XCeed lists on ASX at a premium

Xceed Biotechnology has listed on the ASX (ASX: XBL) at a premium to its placement price of AUD$0.20. At the time of writing the telco turned biotech company, was trading at $0.26, down almost 20 per cent from its opening price of $0.30.

The Perth-based company, which was formerly known as Southpointe (ASX: SOU), recently raised $4.5 million in an oversubscribed placement, to add to the $7 million already to hand. But once Xceed completes its investments and acquisitions into Polymerco, and Boron Molecular the company will have a balance of $4 million remaining.

"Xceed now has two core assets in its portfolio, 50 per cent of Polymerco Pty Ltd and 100 per cent of Boron Molecular Ltd with the core technologies of each company having been developed by CSIRO," said Xceed CEO David McAuliffe. McAuliffe’s biotech pedigree includes involvement in several biotech companies: pSivida and its subsidiary pSiMedica, Australian Cancer Technology, Resonance Health and Boron Molecular.

Both subsidiary companies have a chemical bent -- although each is very different. Boron Molecular, which originally formed in 2001 to commercialise organoboron technology licensed from CSIRO, provides compounds and chemical services to biotechnology and pharmaceutical companies. Polymerco was incorporated earlier this year to develop and commercialise CSIRO Molecular Science's biodegradable polymer technology, which has potential applications in orthopaedics, orthodontics, drug delivery, wound care, tissue engineering and cartilage repair.

In March, the company announced that it would invest $5.1 million into Polymerco, giving it a 50 per cent share of the company with CSIRO holding the remainder. At the same time it announced plans to acquire 100 per cent of Boron Molecular for $4 million, a further investment of $1 million, plus retirement of the company's $1 million debt to CSIRO, which would result in the patents covering the organoboron technology being assigned to Boron Molecular.

Both companies are located in Melbourne -- Boron Molecular has facilities in Noble Park, and Polymerco will remain at CSIRO Molecular Science's facility in Clayton, where the technology was developed.

McAuliffe said the company would focus its attentions on Polymerco and Boron Molecular for the time being, but did not rule out future investment into other biotechnology ventures.

"As an international biotechnology investment company, Xceed will also continue to search for new growth opportunities to generate shareholder wealth," he said.