Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


SeaDragon raises more than expected in sale to investors

SeaDragon raises more than expected in placement to investors

By Tina Morrison

Jan 29 (BusinessDesk) – SeaDragon, which manufactures fish oils for health supplements, raised two thirds more money than expected from a sale of shares to its investors, allowing it to pay down debt and fund a new refined fish oil plant.

SeaDragon raised $4.1 million from the share sale to existing investors, exceeding its $2.5 million target, the Auckland-based company said in a statement. The funds, combined with $2.5 million from the sale of a stake in Snakk Media and $2 million from a share placement, will be used for working capital, debt payment and funding the new plant, the company said.

“The SeaDragon board has resolved to accept all applications for the share purchase plan as it will allow SeaDragon to put in place a capital structure that will see us through our next phase of development,” chairman Doug Wilson said.

SeaDragon is investing in a new factory to allow it to diversify from its current production of squalene and shark liver oil products and ramp up production of higher value Omega-3 fish oils from hoki, tuna and salmon, enabling it to grow its share of the US$30 billion market for fortified foods and drinks.

The company has an agreement with Orange Building Group, owner of its existing Nelson site, to fund and construct the purpose-built refinery in Stoke, which it expects to be completed in the fourth quarter of this year. SeaDragon expects to spend about $4 million fitting out the building.

SeaDragon expects to continue manufacturing its shark liver oil products on its current site and merge the two sites over the longer term, it said.

Shares in SeaDragon were sold to investors at a discounted price of 1.6 cents apiece. The stock gained 4.6 percent to an eight-week high of 2.3 cents.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news