By GEOFF SENESCALL
A biotech company claiming to have a cure for strep throat is being brought to the sharemarket by South Island entrepreneur Howard Paterson.
Blis Technology is set to make its debut on the secondary board in several weeks after successfully raising $3 million from close business associates.
This will be
the second biotech issue Mr Paterson has taken public in four months.
The other was the second board listing of A2 Corporation - a company that suggests there is a link between milk protein in cows and the incidence of diabetes and heart disease.
Hype around A2 has seen its share price rocket to a high of 450c after being issued at 10c.
They are now around 300c.
Its performance is despite secrecy around the A2 operation as it negotiates with the Dairy Board and faces a potential challenge to the intellectual property over the milk findings.
Blis is based on Salivaricin B, an anti-bacterial protein that is said to prevent and control streptococcal throat infection.
It is understood that no timetable has been laid down for the commercial application for the strep throat cure.
But the prospectus apparently suggests that it could be sold as a medicine or through foodstuffs such as powdered drinks, dairy products and chewing gum.
International patents are being sought for the intellectual property of Blis.
The science came from Otago University.
The bulk of the funds being raised are to buy the rights from the university, with the balance used to commercialise it.
The Otago scientists have apparently published work on their findings.
They had sought public funding to carry out further tests around four months ago.
But Mr Paterson - a leading South Island investor with extensive farming interests who is rumoured to be worth more than $100 million - offered to provide the backing.
Many of those who invested in A2 have also invested in Blis.
Enthused with the huge run on the A2 Corporation shares, subscribers have signed for many more than the 30 million 10c shares issued.
According to one broking source, subscriptions to the value of $14 million were received.
The other main shareholders in A2 Corporation are Southern Capital and a Monaco company.
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