SEA
27/05/2016 11:50
GENERAL
PRICE SENSITIVE
REL: 1150 HRS SeaDragon Limited
GENERAL: SEA: SEA raises $3m from CVT; confirms exit from Omega-2 market
NZX / MEDIA RELEASE 27 May 2016
SeaDragon raises $3.0 m from Comvita; confirms exit from Omega-2 market
Comvita convertible loan to provide liquidity as SeaDragon to focus on
significant Omega-3 opportunities.
SeaDragon (NZX.SEA), New Zealand's largest refiner and blender of high
quality fish oils and fractions, announces its cornerstone investor Comvita
has agreed to advance $3 million via a convertible loan to assist the company
through its staged exit of a currently difficult Omega-2 market and gradual
build-up of the Omega-3 business.
SeaDragon Chairman Colin Groves said: "Over the last 12 months SeaDragon has
transformed its business. With the completion of our new Omega-3 refinery, we
have lifted the company's processing capacity from just over 200 tonnes to
5,000 tonnes per year.
"We now have the production capability in Omega-3 to look to firm up both
supplier and customer agreements to deliver on our strategic objectives. The
new refinery is performing well, we are steadily building Omega-3 raw
material supply relationships and we are encouraged by the response we have
received from potential customers.
"As we signalled in late April, volatility in Omega-2 markets has
overshadowed these achievements, with SeaDragon experiencing an extension in
the Omega-2 sales cycle, and a build-up in inventory. This has resulted in a
slower transition from that market and a run-down of cash reserves.
"Comvita's agreement to advance $3 million via a convertible loan allows
this transition from Omega-2 to Omega-3 to occur in a smoother way.
"SeaDragon's Board is delighted with today's agreement, it represents an
extension of last-year's strategic partnership, which saw Comvita subscribe
for $3 million of new shares and agree to partner with SeaDragon to add value
to the New Zealand fishing and aquaculture industries. Comvita's continuing
support is very valuable" Mr Groves concluded.
Comvita CEO Scott Coulter said: "Omega-3 fish oils are a core ingredient
platform for Comvita. We are committed to an on-going investment to establish
a unique New Zealand sourced range of high quality fish oils and are happy to
continue to partner SeaDragon to realise this opportunity"
The convertible loan will be subject to SeaDragon shareholder approval at the
annual meeting scheduled for in August 2016. SeaDragon will update the market
as soon as a date for this meeting has been set and additional information
will be provided to shareholders in advance of that meeting.
SeaDragon expects to release its preliminary unaudited results for the year
to 31st March 2016 on 30th May 2016.
For further information:
Investor Medi
Colin Groves Richard Inder
Chairman The Project
Tel: +64 21 928 003 +64 21 645 643
About SeaDragon www.seadragon.co.nz
SeaDragon (NZX:SEA) is New Zealand'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.
End CA:00283109 For:SEA Type:GENERAL Time:2016-05-27 11:50:27
