HIV-Aids researcher seeks $8.75m from public

Auckland biotechnology company Virionyx is seeking $8.75 million from the public to help it develop an HIV-Aids drug.

The company is offering a maximum of one million shares at $8.75 a share, or 4.4 per cent of the company.

The offer has a minimum subscription of $2 million, but directors expect to raise at least $5 million.

Virionyx hopes to have a limited commercial release of the treatment HRG214, which is based on an antibody obtained from goat plasma, in 2005.

Chief financial officer Paul Young said the company had no specific category of investor in mind, but expected the offer to close at the end of next month, well before the November 30 deadline.

Last month Virionyx said it had received $2 million from anonymous investors, since named as Global Partners.

Virionyx also hopes to secure $10 million from several international biotechnology companies after attending the International Aids Symposium at Barcelona last month.

The company is promoting the offer itself, partly through a roadshow around New Zealand.

The company has been funded by both private and state contributions, including grants totalling $500,000 from state agencies and government assistance for a new, $3 million laboratory in Auckland.

Twelve of the 18 staff are scientists.

- NZPA