SeaDragon releases more capital for new refinery

SeaDragon releases more capital for new refinery

Australasia’s largest refiner and blender of high-quality, internationally-certified concentrated fish derived health supplements SeaDragon (NZX: SEA) has sold another tranche of its stake in Snakk Media releasing a further $585,000 to invest in its new Nelson refinery.

SeaDragon’s sale of 6.5 million shares in Snakk at 9c a share follows on the August sale of 10 million shares in Snakk at the same price. SeaDragon, which inherited the Snakk Media shares when it joined the NZX by means of a reverse takeover of Claridge Capital in late 2012, now holds 8.5 million shares or 3.23% of SnakkMedia.

SeaDragon Chief Executive, Ross Keeley, said: “We are pleased with the sale of the shares and will continue to sell our shareholding, though being mindful of not to sell in a way that lowers Snakk’s shares below fair value.

“SeaDragon has long signalled that our investment in Snakk Media has never been core to our business and we believe the capital is better invested in our planned refined fish oil plant.

“We are making good progress towards the commissioning of the new state-of-the-art plant that will position the company for long-term growth.

“The plant, to be built on the outskirts of Richmond, 20km from Port Nelson and in the centre of New Zealand’s commercial fishing industry – will have capacity to produce in excess of 5,000 tonnes of refined fish oil, and may generate annual sales worth as much as $50 million.

“A heads of agreement with the prospective landlord and a contract for the supply of the equipment are both close to completion and funding arrangements are being negotiated.

“The plant will produce oil high in Omega-3, primarily from hoki oil sourced from a clean Southern Ocean fishery. This fishery is certified by the Marine Stewardship Council as among the most sustainably managed in the world.

“Such oil offers SeaDragon’s customers the opportunity to differentiate their products from anchovy-based oils which represent 83% of world Omega-3 fish oil supply,” Mr Keeley said.

About SeaDragon
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.

ENDS

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