CVT
25/07/2013 15:32
MEETING
REL: 1532 HRS Comvita Limited
MEETING: CVT: Comvita 2013 Annual Shareholders Meeting - Presentation
CHAIRMAN'S REPORT
COMVITA LTD ANNUAL SHAREHOLDER MEETING
THURSDAY, 25 JULY 2013 AT 2.00pm
CHAIRMAN'S ADDRESS
You will have a formal Agenda of Business via the Notice of Meeting, we must
conclude today. We are lucky enough to have Ed Quilty here but as he needs
to leave early to catch a 3.30pm flight, we will turn the Agenda on its head
a little and ask Ed to speak for a few minutes now on Derma Sciences.
Derma you will recall, is the company in which CVT invested in as part of a
Licencing Agreement for our launch of medical honey dressings and patents.
Currently, Comvita has an equity stake in Nasdaq-listed Derma Sciences (DSCI)
valued today at approx. NZ $17 million, comprising:
- 864,880 ordinary shares @ US$14 per share
- 233,000 warrants valued @ approx. US$7 per warrant
On a fully diluted basis (for all warrants and options on issue), Comvita
holds 5.05% of issued equity. Brett Hewlett, our CEO, has a seat on the
Derma Board.
This equity in Derma Sciences was acquired contemporaneously with licencing
agreements completed with Derma Sciences (for a mixture of cash and shares)
in early 2006 and December 2009. Comvita's ownership of this stake in Derma
Sciences is independent of the Licencing Agreement.
Under the Licencing Agreement with Derma Sciences:
- Derma has exclusive worldwide rights to manufacture and sell the full range
of Medihoney woundcare and skincare products to the professional and medical
market worldwide.
- Comvita retains exclusive worldwide rights to sell the same products to the
Over the Counter (OTC) market.
- Derma manufacture the range of Medihoney products for Comvita to sell to
OTC customers.
- Comvita supply medical grade manuka honey to Derma.
- A joint Research & Development co-operation agreement between Derma and
Comvita.
The global licencing rights agreement has proven to be outstandingly
rewarding for both Derma and Comvita:
- From a standing start in 2006, Derma Sciences Medihoney sales are now at a
run rate of US$15 million pa and Comvita now receives a royalty stream of
approx. $400,000 per quarter and growing.
- Comvita has received its second capital milestone payment of US$1 million
in 2012-2013 based on Medihoney sales reaching sales targets defined upon
signing the Agreement.
- Sales by Derma Sciences are continuing to grow at approx. 40% pa.
Our working relationship at operational and Board level, with Derma Sciences
remains very strong - against this background, I am delighted to have Ed
Quilty, the CEO and Chair of Derma Sciences, address you for a few minutes.
The programme from here is that I will run through a few slides on our Result
and where we are, in our view, as a Company. Brett will then provide an
operational overview, then we will cover off the shareholder Resolutions.
Refer to attached presentation.
I'd now like to hand over to Brett Hewlett, CEO.
Ends
For more information:
Neil Craig
Chairman
Tel: +64 21 731 509
Brett Hewlett
Chief Executive
Tel: + 64 21 740 160
Julie Chadwick
Communications Manager
Tel: +64 21 510 693
About Comvita (www.comvita.co.nz)
Comvita (NZX:CVT) is an international natural health and beauty company
committed to the development of innovative products, backed by credible
scientific research. We are the global leader in Manuka (leptospermum) honey
and fresh-picked Olive Leaf Extract, which are at the core of the Comvita
product range. We have more than 35,000 beehives under contract and direct
control with more than 5000 producing specialist medical-grade Manuka honey.
Comvita's Fresh Olive Leaf Extract is grown, harvested, extracted and bottled
at the world's largest specialised olive leaf grove, with over 580,000 olive
trees.
Comvita sells into more than 18 countries through a network of wholesale and
third-party outlets and online. We have offices in New Zealand, Australia,
Hong Kong, Japan, Taiwan, South Korea and the United Kingdom.
End CA:00238976 For:CVT Type:MEETING Time:2013-07-25 15:32:16
