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

 

Christchurch: New Lyttelton Cruise Ship Berth To Be Built

A new $56 million cruise ship berth will be built in Lyttelton with the plans released by the Lyttelton Port Company today. More>>

ALSO:

Constructions Builds: Consents Top $2 Billion For The First Time

Building consents reached a record $2 billion in March 2017, boosted by new homes and several big non-residential projects, Stats NZ said today. This was up 37 percent compared with March 2016. More>>

Other Stats:

Health: Work Underway To Address Antimicrobial Resistance

As part of a global response the Ministries of Health and Primary Industries have today jointly published ‘Antimicrobial Resistance: New Zealand’s current situation and identified areas for action’ to respond to the changing pattern of antimicrobial resistance in New Zealand. More>>

ALSO:

Employment: Vodafone Announces Family Violence Policy To Support Team

From today, any of Vodafone’s 3,000 workers affected by family violence will be eligible for a range of practical support, including up to 10 additional days of paid leave per year. More>>

Burning Up Over Saturn: Cassini's Grand Finale

With propellant running low, NASA scientists are concerned that the probe might accidentally crash into one of Saturn’s nearby moons, which could contaminate it with Earthling bacteria stuck to the spacecraft. Instead, the spacecraft will be safely "disposed" in Saturn's atmosphere. More>>

ALSO:

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news