BioMedica sues over AIM flop

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Oxford BioMedica, a biotech group backed by Oxford University, yesterday served High Court writs claiming almost pounds 1m from two underwriters who are alleged to have caused the group's AIM listing to flop in December after they withdrew their support, writes Magnus Grimond.

Kaj Kjellquist, a Swedish investor living in the UK, and Stockton Trading, a Bahamian-registered company, pulled out of the flotation just days before trading was due to begin.

The shares were placed at 88p, and lost almost 50 per cent of their value in first-day dealings. At yesterday's close the price was 50.5p, down 2p on the day.

The issue raised just over the pounds 5m Oxford said it needed to meet working capital requirements. The company is suing for most of the difference between this sum and pounds 6.15m, which was the underwritten sum mentioned in the flotation prospectus.