Biotech firm delays float to court others

By Duncan Bridgeman

Friday 5th July 2002

A subsidiary of biotechnology research company NeuronZ has delayed issuing a public float while it courts private investors.

BrainZ Instruments had planned to list on the unsecurities market in June as an equity carveout for NeuronZ but chief executive Mark Bellas said two private investors had since expressed interest and the float had been postponed.

"We have put the public float process on hold for two weeks while due diligence is being carried out. Until the outcome of that, we can't say whether or not there will still be a float."

BrainZ was set up by NeuronZ and electronic technology firm Tru-Test to develop a medical device called the brain monitor, designed to detect brain injury in premature infants. The company was looking to raise $6 million to help commercialise the technology.

Mr Bellas said the two investors, one a local company and the other a US Nasdaq-listed company, did not want to be involved if BrainZ became a public company. Any deal would see the successful investor gain a controlling stake in the company. "A float was always the preferred option," Mr Bellas said.

NeuronZ is the majority shareholder in BrainZ and a proportion of the new capital would be used to repay the company for its research and development work incurred since the BrainZ venture began last year.

NeuronZ is a University of Auckland-linked company bankrolled by high-profile venture capitalists. Investors include Jenny Gibbs and New Zealand Seed Fund, owned mainly by private investors including The Warehouse's Stephen Tindall and Telecom chairman Roderick Deane.

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