Avrio Ventures LP is poised to become the largest shareholder of Advitech Inc., a health-sciences company that is positioning itself to become a manufacturer, developer and marketer of skin-care products.

Advitech currently produces Dermylex for the treatment of mild-to-moderate psoriasis. Advitech has drawn up a research program to develop new applications related to wound healing.

Under a series of proposed transactions, Advitech will use its shares to purchase Botaneco Specialty Ingredients Inc. from Avrio _ a Canadian venture capital focused on industrial bioproducts, nutraceutical ingredients and food technology companies _ and SemBioSys Genetics Inc.

Concurrently, Avrio and AgeChem Venture Fund LP will together invest a total of $2.5 million to purchase equity in Advitech.

After the sale and concurrent financing, Avrio will own nearly 42 per cent of Advitech and have the right to nominate two directors to a seven-person board. AgeChem will own nearly 22 per cent of Advitech, and also get two board seats.

According to figures from the companies, Botaneco had $611,577 in revenue for the year ended Dec. 31, 2008 and $337,300 for the six months ended June 30. Over the 18-month period, it recorded losses totalling $7.57 million.

If Botaneco and Advitech had been combined over the same period, the business would have had $1.67 million revenue in 2008 and $652,589 in the first half of 2009. The total loss over the 18-month period would have been $8.7 million.