Agricultural biotechnology play FuturaGene joined AIM in May 2004 at 38p via a reversal into shell OverNet Data – a placing at the time raised £1.9m, and subsequent placings have pulled in another £4.3m. Chaired by original angel investor Mark Pritchard, the company has worldwide patents on genes capable of improving yields for crops facing ‘abiotic stresses’ – extreme environmental conditions like cold, drought, and high salt concentrations. Its portfolio of genes enhance the function of genes already present in plants through ‘over-expression’ of those genes – FuturaGene already has laboratory prototypes of rice and tomato plants with resistance to salt, drought and cold. Pritchard’s strategy is to license out the intellectual property through royalty agreements to major seed producers for product development – ‘we’re in advanced negotiations in terms of licensing out our valuable IP’. Maiden full year figures to December revealed losses of £1.06m (£140,000), although current cash reserves top £5m, and the burn rate is between £800,000 to £1m per year. Since the year-end, FuturaGene has signed a joint venture with China Agricultural University that will allow the group to commercialise several new genes, as well as develop and test prototype crops at the university, and acquired rights to a portfolio of patents on a plant protein that could treat obesity, heart disease and diabetes. Seasoned investors with a liking for risk might back FuturaGene, although the £48.3m valuation looks too high for a group still some way from revenues let alone profits. Avoid for now.