Southern Capital's stake in a new Howard Paterson-sponsored company, C G Surgical, has risen in value from $80,000 to $1.7 million in a couple of weeks.
C G Surgical's 10 million shares were issued at 8c recently and Southern Capital bought one million of them. A few early trades last week saw the shares change hands at 60c but this week a parcel of 5000 shares was traded at $1.70.
South Island businessman Mr Paterson, who is a founder shareholder and director of Southern Capital, identified the opportunity to invest in C G Surgical through his links with Otago University researchers.
Other recent fledgling bio-tech companies where Southern Capital has stakes include Blis, which owns patents over a cure for throat infections, and A2 Corporation, which claims patents over milk proteins that may have significance for some health conditions. After initial stagging on Blis and A2 shares issued at 10c, trades have settled to a narrower range around 80c and $2.30, still representing considerable paper profits for Southern Capital.
Managing director Graeme Wong said Southern Capital was retaining its stakes for now.
C G Surgical was developed by engineer Richard Cathro. It has patents over a titanium and teflon clip which prevents pressure on the spinal cord. Pressure can cause neurological-related complaints.