SYDNEY - Circadian Technologies Ltd. has disclosed plans to raise up to A$12 million by listing its obesity project on the Australian Stock Exchange (ASX).

Circadian, of Melbourne, revealed details of its planned float of Metabolic Pharmaceuticals Ltd. to the ASX, including plans to issue 40 million shares at A$0.20 each for a total of A$8 million, along with sufficient free options to create another 20 million shares for A$4 million at the same price.

Once the shares are issued, and before any of the options are exercised, Circadian will own just under half the company, and Monash University, in Melbourne, where the original research was done, will own 33.2 percent.

Circadian intends to float off development of a fragment of the human growth hormone that accelerates the burning up of fatty cells. Circadian executives said the fragment, known as AOD 9604, has shown considerable promise in trials with mice.

As the public is providing the initial A$8 million and will own 17 percent, their investment values the float on the whole anti-fat project at A$47 million.

In addition, Circadian said it has obtained an independent valuation of the project from David Randerson, managing director of the consulting firm Acuity Technology Management Pty Ltd. That valuation ranged from A$31 million to A$47 million.

The Australian stockbroking firms of Lodge Partners and Saw James Capel Ltd., both in Perth, will act as sponsoring brokers for the issue; however there is no underwriter for the float.

Chris Belyea, Circadian's licensing and projects manager and the managing director of Metabolic, said brokers and the public are showing plenty of interest in the project and he does not believe there will be any difficulty in raising the money, even with the present soft state of the Australian market.

A prospectus for the float will be issued in the next few weeks, Belyea said. *

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