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SeaDragon raises $2m; new refinery underway

SeaDragon raises $2m; new refinery underway

SeaDragon (NZX: SEA) has given the green light to its new refinery southwest of Nelson after raising $2m in new capital with the placement of shares to Eligible Investors. SeaDragon’s 25.3% shareholder BioScience Managers has committed to subscribe for shares sufficient to maintain its current proportional share in the company.

Following completion of a successful book-build yesterday evening, SeaDragon will issue 125,000,000 new shares at 1.6 cents a share. Settlement will occur on Friday 29 November 2013, with allotment taking place shortly thereafter.

SeaDragon’s Board has meanwhile resolved to undertake a Share Purchase Plan (SPP) offering all New Zealand resident SeaDragon shareholders who hold shares as at the nominated SPP record date, the opportunity to acquire up to $15,000 of shares at the same price as the share placement. Further details of the SPP will be announced shortly.

SeaDragon Chairman Dr Doug Wilson said: “The proceeds of the share placement combined with the $1.8 million raised from recent sales of SeaDragon’s shares in Snakk Media give us the resources to proceed with the construction of our new refinery near Richmond southwest of Port Nelson. Agreements to proceed will be executed in the next few days. 

“The SeaDragon Board also resolved to offer an SPP to give our loyal shareholders an opportunity to acquire shares in the company at the same price as the share placement and to further strengthen the company’s capital position.

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“The success of this share placement opens an exciting new chapter in SeaDragon’s development. Worldwide demand for Omega-3 rich fish oil is growing rapidly supported by a compelling body of scientific literature on the human health benefits of Omega-3 rich diets.

“SeaDragon’s new refined fish oil plant will allow the company to take advantage of this opportunity and ensure we can meet demand well into the future,” Dr Wilson said.

SeaDragon Chief Executive Ross Keeley said: “SeaDragon is in a unique position to develop a high-value niche within the fast growing international market for Omega-3 rich fish oils.

“We are situated at the heart of the New Zealand fishing industry in Nelson, giving us access to abundant sources of Hoki fished from the world’s cleanest oceans as well as salmon farmed in the Marlborough Sounds. Oil from both species is rare and can attract a premium over the anchovy oils that dominate the Omega-3 fish oil market.

“We also benefit from New Zealand’s reputation for integrity, food product purity and safety. These factors, united with the capability provided by the new factory and SeaDragon’s manufacturing expertise, represent a winning combination,” Mr Keeley said.   

SeaDragon will release its results for the six months to 30 September 2013 on or before 28 November 2013.

ENDS

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