A YORK-based business is positioning itself to develop and supply appetite suppressing compounds to a global market using £3.3 million raised via a reverse takeover.

OptiBiotix, based in the Innovation Centre at York Science Park, is set to list on AIM after agreeing the sale of the business to listed investor Ducat Ventures.

The move is aimed at giving the combined group a market capitalisation of £5.7 million.

Formed in March 2012, OptiBiotix has been working with Reading University and Holland based food research agency Nizo, to develop compounds which modify the human microbiome to prevent and manage human disease.

Its aim is to discover and develop microbial strains which can be used as food ingredients or supplements for the prevention and management of human metabolic diseases, such as obesity, cholesterol and lipid distribution and diabetes.

Founded by Stephen O'Hara with David Evans, the business was initially funded by £270,000 investment from Finance Yorkshire.

Mr O'Hara, chief executive of OptiBiotix said: "We have proved the concept for microbiomes reducing cholesterol and altering how the body harvests energy. This takeover and listing gives us the funding to develop these products to take to market.

"It's a lengthy process but we have got three products we are working on.

"The first product we are looking at its a cholesterol reducing product, the second is a weight management formulation and the third is creating new sugars which have high levels of sweetness but no calories."

Adam Reynolds, executive chairman of Ducat, said: "We see a massive opportunity to address the market with this pipeline of products being developed.

"In addition, the development of novel non-digestible sugars is expected to have a huge impact on the healthy eating market place where major commercial partners are looking to find healthier sugar substitutes."

Ducat has agreed to pay £2 million for the company to be satisfied by the issue of 25 million new ordinary shares at a price of 8p each.

Peterhouse Corporate Finance, the firm's broker, has conditionally raised £3.3 million before expenses for Ducat. The net proceeds of this will be used to develop the intellectual property of OptiBiotix and commercialise its products.

If Ducat's shareholders agree to the reverse takeover, its name will be changed to OptiBiotix Health plc on August 4.