CVT
29/01/2016 15:17
GENERAL
NOT PRICE SENSITIVE
REL: 1517 HRS Comvita Limited
GENERAL: CVT: Strong Uptake in Share Scheme for Honey Suppliers
Comvita Limited (NZX: CVT) announced in February 2015 that it was commencing
a share scheme to reward its largest and most loyal honey suppliers who
committed to long term supply agreements. In May 2015 Comvita announced that
it was introducing a separate, but similar scheme to recognise and reward the
former suppliers of New Zealand Honey Producers Co-Operative Limited who
transitioned their honey supply to Comvita on an exclusive basis.
In accordance with the rules of the respective Schemes, today Comvita has
transferred 346,957 shares from Comvita Treasury Stock to the Trustee of the
Schemes at a value of $8.55 per share. Approximately 76,000 of these shares
will be released to the 62 beekeeper members for the first year of supply in
accordance with the terms of the respective Schemes. The balance will be
released from the Trustee to the beekeepers when they fulfil their contract
supply obligations over the next two years.
Comvita CEO Scott Coulter said, "Both Schemes were well received by the
beekeeping supply community and the uptake from those suppliers invited to
participate in the Schemes has been strong. As such, the total number of
suppliers and total volume of honey to be supplied under the Schemes has
surpassed our targets."
The Schemes will progressively reward those beekeepers who identified the
value in establishing a long term supply partnership with Comvita, in the
form of shares. Through this innovative approach, these honey suppliers are
able to participate in the value-add that Comvita can bring to raw honey and
the resulting profitability of Comvita through dividend flow and capital
appreciation of Comvita shares.
The success of the two Schemes has demonstrated that a growing number of New
Zealand beekeepers are seeking longer term surety on price and customer
demand when selling their crop. They see the benefits to themselves, the
industry and customers when supply commitments are formalised under long term
contracts. The Schemes will serve as a strong foundation for the supply model
and collaborative approach that Comvita will continue to operate into the
future.
Ends
For further information:
Scott Coulter, Comvita Chief Executive, Ph. 021 386 988
Neil Craig, Comvita Chairman, Ph. 021 731 509
About Comvita (www.comvita.co.nz)
Comvita (NZX:CVT) is a global natural health company committed to the
development of innovative products, backed by ongoing investment in
scientific research. We are the world leaders in Manuka (leptospermum) honey
and fresh-picked Olive Leaf Extract, which are at the core of the Comvita
product range.
We have approximately 50% of honey supply under direct ownership or control,
with the balance of supply from long term contractual and partnership
arrangements. Comvita pioneered the development and use of medical grade
Manuka honey and was the first to receive FDA approval (2007). We partner
with US wound care company Derma Sciences, Inc. (NASDAQ:DSCI), the global
licensee for Medihoney specialist wound care products, which are used in
hospitals and medical centres around the world. Comvita's freshly picked
Olive Leaf Extract is grown, harvested, extracted and bottled at the world's
largest specialised olive leaf grove, with over one million olive trees.
Comvita sells into more than 18 countries through a network of our own
branded retail locations, online (seven country specific e-commerce websites)
and third-party outlets. We have over 500 staff located in New Zealand,
Australia, Hong Kong, Japan, South Korea, the United Kingdom and the USA.
End CA:00277010 For:CVT Type:GENERAL Time:2016-01-29 15:17:04
