Certified Organics Seeks $6 Million For Growth
June 28, 2002
Certified Organics Seeks $6 Million For International Growth
Statement based on addresses given
today at Certified Organics Limited’s
annual meeting in Auckland
Certified Organics is seeking to raise up to $6 million through a private share placement to fund its expansion into Australia and other international markets.
It will also use the funds to further develop its pipeline of certified organic and natural products, and to acquire complementary products and scientific capabilities.
At today’s annual meeting in Auckland, shareholders approved directors placing up to 1 billion new shares, which will represent 29.5% of the company’s shares on issue.
Directors were authorised to place the shares at a discount of up to 30% of market price.
While directors have yet to identify interested parties, it will target long-term strategic investors with a strong interest in accessing the rapidly developing organics market or those with a socially responsible focus on sustainable agricultural development.
Managing Director, Dr Earl Stevens, told shareholders Certified Organics was a “market leading company committed to developing and marketing scientifically sound, eco-rational and sustainable products”.
“Our initial focus will be on underpinning the stability of the company by concentrating on New Zealand and Australia.
“A household version of our certified organic weed killer, Organic Interceptor™ is already on the market in New Zealand and will be launched in Australia shortly.
“A commercial product is in the final stages of achieving regulatory consents in New Zealand and Australia.
“At the same time, we are processing product registration in the European Union and North America.
“This will ensure that in 18 to 24 months, when we are firmly established in New Zealand and Australia, we are ready to enter these markets too.”
Dr Stevens told shareholders that the company’s pine extract would be the technology platform for a wide range of new products, including fungicides, pesticides and cleaners.
“The strategic alliance we have with BioDiscovery New Zealand has given Certified Organics the scientific capability to exploit in full the agricultural and industrial potential of our patented pine extract invention.
“Our processing methodologies are innovative, and also protected by commercial know-how and a strategy designed to retain our trade secrets.
“What we are doing is not easily reproducible.”
Chairman, Dr Ray Thomson, said the company was on course to meet its forecast revenue target for the year ending December 31, 2002, of $2 million, and hold the year’s operating deficit down to $1.6 million.