- Release Date: 14/10/13 17:59
- Summary: S/HOLDER: BLT: Share Purchase Plan 15 October 2013
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BLT 14/10/2013 15:59 S/HOLDER REL: 1559 HRS BLIS Technologies Limited S/HOLDER: BLT: Share Purchase Plan 15 October 2013 BLIS Technologies Limited Letter to Shareholders Share Purchase Plan 15 October 2013 BLIS Technologies Limited (BLIS and/or the Company) is pleased to present this Share Purchase Plan to shareholders following ratification at the Annual Shareholders Meeting (ASM) of capital raising initiatives in support of business development strategies. The requirement for further capital was signalled at the time of the 2012 Share Purchase Plan and Placement and reaffirmed in the 2013 Annual Report. Specifically Directors advised that new equity was required for the Company to offset an anticipated near term operating deficit and to meet its capital expenditure and working capital requirements. The Directors determined a placement followed by a Share Purchase Plan as the preferred capital raising process. Placement subscriptions were sought from private investors and industry participants conditional upon approval at the ASM. The Board commissioned an independent appraisal report from Simmons Corporate Finance on the capital raising proposal to ensure shareholders were informed in making their decision on whether or not to support the initiatives. Shareholders at the ASM endorsed the placement of up to 300 million shares at 1 cent per share to parties that included the existing major shareholder Edinburgh Equity Nominees Limited and new trade investors Asian Pacific Partners Limited (APPL) and NZPR Group and associated interests (NZPR). At the date of this letter, pursuant to the placement the company has received subscriptions for and issued more than 233 million shares. This Share Purchase Plan provides for the issue of up to a further 150 million shares at 1 cent per share. Shareholders each have the ability to apply for up to $15,000 of shares (being 1,500,000 shares). The terms and details of the Share Purchase Plan are set out in the attached documents. In aggregate these initiatives are expected to raise $3.5-$4.5 million in support of the commercialisation of BLIS products in New Zealand and international markets. Upon completion of the capital raising the Company will have the capital base necessary to support its business strategies. These strategies entail the pursuit of global ingredient sales in conjunction with its primary distributor Novus Nutrition Brands and the parallel implementation of consumer oral product strategies with its trade partners APPL, NZPR and others. These strategies will continue to be supported by investment in the underlying science of the Company's proprietary probiotic strains and regulatory approval processes. Other than a delay to the commissioning of the nutritional formulations plant, business development in the current year is in line with expectations. The plant has now been commissioned and approvals are being sought for export of product. The Company will in conjunction with third parties produce and market milk based formulations mainly for Asian markets. These nutritional formulations will include beverages with BLIS K12TM and BLIS M18TM ingredients providing functional foods with BLIS trademarks. Novus Nutrition Brands has made good progress initiating ingredient sales in Japan and Europe. Developments include the release in Japan of a companion animal health care product containing BLIS K12TM. New Zealand pharmacy and web based sales (http://www.blis.co.nz) are showing strong growth. The former boosted by our New Zealand distributor's introduction of a new blister pack format for BLIS K12TM lozenges. BLIS is collaborating with APPL to identify and develop specific applications for finished retail products and nutritional formulations. APPL are professional investors and value added partners with business connections and commercial partnership capabilities throughout Asia and the Middle East. NZPR Group Limited is a trade facilitator with extensive business connections in China that support a wide range of interests. NZPR played a critical role in obtaining approval for BLIS K12TM as a food ingredient in China. NZPR is now building the infrastructure in China to distribute BLIS products and recently reached a major milestone with the appointment of Sinopharm to market oral health products containing BLIS's probiotics. Sinopharm is the largest pharmaceutical company in China. Its operations include research and development, manufacture and a distribution and marketing network that extends throughout China and internationally. Although the Company has yet to achieve profitable operations successful implementation of the business strategies are expected to deliver profits in the foreseeable future. As outlined in the Simmons Corporate Finance appraisal report an operating loss is still anticipated in the 2014 financial year. In the first four months of the 2014 financial year the Company met its budgeted trading contribution on revenues of $560K (48% of total sales revenue for 2013 FY). Conclusion Your support of the Share Purchase Plan will enable the company to maintain its core competencies, foster its nutritional formulations business and leverage the execution of its branded ingredients strategy for advanced probiotics internationally. Yours faithfully BLIS Technologies Limited Peter Fennessy, Chairman The BLIS products BLIS has oral probiotic products in the market in New Zealand and has established ingredient sales in the United States, Europe and Asia. The Company's primary focus is on Streptococcus salivarius K12, an oral bacterium that produces bacteriocin-like inhibitory substances that provide protection against a range of oral conditions. S. salivarius is a natural inhabitant of the human mouth with K12 being a particular strain that produces bacteriocin-like substances (salivaricins) which act as natural antibiotics and inhibit the growth of undesirable bacteria. The K12 strain is active against Streptococcus pyogenes which causes conditions including strep throat. The company has also generated good clinical evidence (published) for the effectiveness of K12 against halitosis/bad breath. BLIS has also developed M18 (another strain of S. salivarius), for which there is evidence of activity against S. mutans, a pathogen implicated in caries (tooth decay). The company has developed significant expertise around the production of these probiotics that ensures that the organisms are stable and are active in the mouth of the user. This is an important area of trade secrets. End CA:00242333 For:BLT Type:S/HOLDER Time:2013-10-14 15:59:08
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- Ann: S/HOLDER: BLT: Share Purchase Plan 15 Octobe
Ann: S/HOLDER: BLT: Share Purchase Plan 15 Octobe
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