Shareholders back Virionyx

Shareholders in Auckland biotech company Virionyx have overwhelmingly approved the sale of a stake to US investors to help to fund development.

Shareholders voted in favour of Virionyx's two options to raise US$5 million to US$7.5 million from the US.

The first option would see US investors put up US$5 million for a 15 per cent stake, plus a further US$5 million when a US listing was approved. This choice would be subject to the company reincorporating in the US.

Chief executive Simon Wilkinson said listing in the US would cost about US$2 million and make managing the company more complex. For these reasons the board preferred a second option involving a private placement by US investors of up to US$7.5 million but with Virionyx staying incorporated in NZ.

The new money will be used mainly for phase two trials of the Aids drug HRG214.