SeaDragon signs new working capital facility; new factory
27 August 2014
SeaDragon signs new working capital facilities; new factory progresses
New Zealand’s largest refiner and blender of high-quality fish oils, SeaDragon, has agreed on a new $3 million working capital facility.
The facility is to be used to fund raw materials secured under the supply agreement for its existing plant announced in March. Under that agreement, SeaDragon has contracted to buy raw material more than sufficient to cover squalene production budgeted for the 2015 financial year and beyond.
SeaDragon Chief Executive Ross Keeley said: “This facility highlights SeaDragon’s strong position. It recognises the strong demand for our products. It also recognises the security provided by the two squalene sales contracts announced in May and June.
Mr Keeley said SeaDragon had meanwhile received notification that the Resource Consent for the manufacture and processing of fish oil at the new refining facility in Nelson had been approved. Clearing of the site had now commenced and construction would begin after the receipt of the building consent.
“SeaDragon is in good shape. Our new processing facility, which will allow the company to expand its production of Omega-3 fish oils, will open a new frontier of growth for the company," Mr Keeley said.
"We remain on track to commission the plant next year. Meanwhile, the new working capital facility combined with a secure supply of raw material provides a solid underpinning for the existing business. We are looking to the remainder of the financial year with considerable optimism.”
SeaDragon (NZX:SEA) is Australasia’s largest refiner and blender of high-quality, internationally certified concentrated fish oils and fractions, including Omega-3 oils. Our oils are sourced from fish caught in the clean and pure waters around New Zealand, in the Southern Ocean, and elsewhere. We have more than 20 years’ experience processing fish oils and we are recognised for the quality and purity of our products. We supply health supplement manufacturers around the world to meet the burgeoning demand for pure, high-quality fish oils, which are scientifically proven to deliver significant human health benefits such as lowering the risk of heart disease, improving brain function and joint health. The majority of our supply is exported.