Transcription of Finance News Network Interview with iQ3Corp Limited (ASX:IQ3) Executive Director, Spiro Sakiris Lelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me from iQ3Corp Limited
(ASX:IQ3) is its Executive Director, Spiro Sakiris. Spiro welcome to FNN.
Spiro Sakiris: Thank you Lelde, it’s a pleasure to be here.
Lelde Smits: iQ3Corp is a corporate finance and advisory firm about to debut on the ASX. Why did you decide to list?
Spiro Sakiris: The reason why we decided to list is to raise capital to expand our operations, nationally and globally. Did you know that Australia is a leading biotechnology hub in this world? We have more than 900 unlisted biotechnology companies. The challenge each of these companies face is to raise capital, which is virtually impossible other than accessing the capital markets. This is a tremendous opportunity. iQ3Corp’s role is to bring these companies to the markets, to help them raise their capital and to convert their IP into reality.
Lelde Smits: The IPO did close oversubscribed. How much did you raise and what price will you list at?
Spiro Sakiris: For strategic reasons, we decided to close the IPO at the maximum of $4.4 million. We’re listing at 30 cents as stated in the prospectus. We believe that’s a fair value for the Company. Now we have two support groups, we have our clients but just as important, our investors. We are an investor-centric organisation.
Lelde Smits: iQ3Corp is focused on early stage biotech companies. What is iQ3Corp’s business strategy?
Spiro Sakiris: These 900 unlisted biotech companies will typically have a 10 to 15 year cycle, before they achieve their drug development. Most of them have no idea what their first invoice looks like. Furthermore, they need to raise per project in the vicinity of $2 billion and we have companies here, with a nil revenue base. This is a challenge. So which corporate advisory firm understands the science? Which corporate advisory firm has the appetite and the willpower, to underwrite these companies? That corporate advisory firm is iQ3Corp.
Lelde Smits: Why is iQ3Corp a different corporate advisor to the others?
Spiro Sakiris: We offer tailor made solutions specific to biotech. Our customised solutions incorporate scientific background, international network access and global drug development. What we do is we have experts from the areas of capital raising, finance, investment banking and global drug development. We furthermore access experts from therapeutic areas, together with key opinion leaders in specialties that are related to biotech. We harness all these resources, bring them altogether and from there, we offer the solution.
Lelde Smits: The Company does have both corporate finance and scientific expertise. How do both align to deliver results?
Spiro Sakiris: That is paramount to our business success. On one hand, we have biotechnology companies who have the capability to convert compounds into medicines. But they need to raise this $2 billion. On the other hand, we have capital markets who have the investment appetite. Our role is to unite these and to create the medicines of the future.
Lelde Smits: What are the main risks in the biotech sector, and how is the Company navigating around those risks?
Spiro Sakiris: There’s no shortage of risk in biotech, let me explain a couple. We have patent erosion; we have regulatory risk. Historically only 20 per cent of these projects get past regulatory approval. iQ3Corp’s model is to foresee and mitigate these risks.
You see, what we do is we take the 10 to 15 year development cycle and we break that down into smaller components. Creating multiple entry and exit opportunities for the investors. This way you see risk is a choice, not a fate. It then becomes an economic positive. To quote John Augustus Shedd, “A ship in the harbour is safe, but that is not what ships were made for.”
Lelde Smits: Finally Spiro, what are your ambitions for iQ3Corp in its first year of trade on the ASX?
Spiro Sakiris: To expand our investor base by educating the investor community about biotech. What we want to do is, we want to create and expand investor awareness about biotechnology. This will lay the foundations to create substantial and sustainable growth for iQ3Corp and for Australia.
Lelde Smits: Spiro Sakiris, thank you for introducing us to iQ3Corp and all the best for its debut.
Spiro Sakiris: It’s been my pleasure.
Ends
