Edison values SeaDragon at 2.1 cents per share
Edison values SeaDragon at 2.1 cents per share; Omega-3 factory a ‘game-changer’
London-based Edison Investment Research has valued New Zealand’s largest refiner and blender of high-quality internationally-certified concentrated fish oils and fractions SeaDragon at $0.021 per share, a 91% premium to the company’s last traded share price.
In its research note, ‘Fish oil factory on approach’, Edison says its valuation assumes SeaDragon raises the $9 million it is now seeking with its current 3-for-5 rights offer. Also, the note assumes a steady ramp up in production for the company’s new Omega-3 fish oil refinery and its existing Omega-2 operations.
The report notes the new Omega-3 refinery will be a ‘game changer’ for the company because the addressable market is approximately 50 times larger than the Omega-2 market and the plant will allow the company to produce more value-added products.