Botryzen step closer to securing future
December 17. 2009
For Immediate Release
Botryzen step closer to securing international future
company Botry-Zen is a step closer to cementing its
international growth aspirations after an existing
substantial shareholder of the company has agreed to
subscribe a minimum of $500,000 to a new Convertible Notes
The offer is conditional on shareholders subscribing a minimum of $750,000 to the Share Purchase plan currently on offer to them. This closes on December 22. It is also conditional on Botry-Zen raising a total of $2 million by way of the Share Purchase Plan and the Convertible Note issue.
Accordingly the company is offering the Convertible Notes via a private placement through John Paine, of Global Pacific Corporation. This issue is only available to Eligible Persons or habitual investors in terms of the Securities Act.
Botry-Zen general manager Stephen Lorimer said that the company has made strong progress in 2009, especially in the United States where it has gained state registration in California and is seeking similar registration in Oregon and Washington.
“Botry-Zen is also well recognised and highly regarded in Europe where several significant parties have expressed serious interest in partnering us. Detailed discussions are under way with several parties.
“It is the potential of these markets, plus our growth here in New Zealand, that is propelling the capital raising programme. We also need to fund our US market development and field trials as well as our European product evaluation and registration,” he said.
Dr Lorimer said that the world, especially Europe, is becoming very “green focused” which was ideal for companies like Botry-Zen who produce organic, residue-free and sustainable products.
“The wine glut also means that producers, even in New Zealand, are looking for a point of difference. Several top-end producers, especially premium wine exporters are using Botry-Zen for this very reason.
“To keep up with expected demand, we have to keep looking at the horizon and the exponential growth that could occur with overseas success. It’s tomorrow’s demand that we must be capable of handling,” he said.
Initially Botry-Zen needs to purchase four new fermenters at its Dunedin plant but ultimately the underlying desire is to move away from supplying international markets from its New Zealand factory and to move to an international model where returns are based on royalties and licence fees.
“The New Zealand manufacturing base will be used to seed offshore markets but long term other manufacturing options will be developed to serve these export markets.”
Dr Lorimer said that there is huge scope outside the wine industry in kiwifruit, strawberries black currants and boysenberries. “A recent trial in Holland has confirmed the value of providing an alternative to chemicals in controlling botrytis in berry fruit while back here in New Zealand trials in the high-value seed industry, especially carrots, yielded good results,” he said.