Certified Organics Completes Share Placement
29 October 2004
Certified Organics Completes Share Placement And Appoints New Chairman
Statement made by David Warrick, Managing Director, Certified Organics Limited
Certified Organics has completed the placement of 8.85 million shares to a small number of New Zealand resident private shareholders, raising $885,000 before costs.
The placement, approved by shareholders at the annual meeting held in August, was fully subscribed.
The new capital will be used to fund the continued development of the business’s intellectual property and its overseas sales growth. Attached to the issue of shares are options to acquire shares which may generate a further $750,000 over the next two years.
The Company has decided to defer a decision on whether to proceed with an approved 1 for 7 rights until the New Year. A decision then will be dependent on the Company’s need for funds at that time.
The Board is encouraged by the level of support for the share placement that it found in the market.
Dr Wayne Cartwright has been appointed to the Board as a non-executive director and Chairman.
Dr Cartwright is Professor of Strategic Management at Auckland University. He is Chairman of Enigma Publishing, which develops advanced decision support systems for health care and a director of two other public companies. Previous directorships include Direct Capital Partners, Nobilo Vintners, Forestry Corporation of New Zealand and Auckland UniServices. Wayne consults widely in the fields of business strategy, corporate governance, and international development. He holds degrees in agricultural science and economics with marketing.
Dr Cartwright succeeds Dr Earl Stevens, who, after three years with the Company, as Managing Director and subsequently as Chairman, is leaving the Company to concentrate fully on the development of the Bio-Strategy science and technology investment group, of which he is the founder and Managing Director.