The director of cash-strapped biotech company Dia-B Tech has said the company will dispute a significant amount of money owed to Minter Ellison for its role in a failed takeover bid and a A$12.5m capital raising.

A prospectus filed with the ASX in May showed that Minter Ellison was to be paid a minimum of A$150,000 to advise on the capital raising, which was to be used to fund the acquisition of unlisted company Pallane Medical. The prospectus showed that Pallane Medical was also advised by Minter Ellison.

Winteray had agreed to underwrite the capital raising but pulled out, meaning the raising failed. Dia-B Tech director Peter Stafford said recently that the money owed to Minters was more than the amount filed with the ASX and that the firm should seek compensation from Winteray. “There's a big amount of debt owing to Minters... it's higher than what was stated in the prospectus,” Stafford said. “A lot of it revolves around the deal with Winteray and the company does not believe that it should have to pay. We will be suggesting that Minter Ellison pursue Winteray, as we are going to.”

A newspaper report said that Pallane Medical was also considering legal action against Minter Ellison over the aborted deal, with chairman Peter King saying it had cost him both money and time.

A spokesperson for Winteray told ALB that the company had not yet received demands from Minters, but refused to comment on any pending action between Dia-B Tech and itself.

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