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Wednesday 3rd September 2008 |
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The announcement that Claus Hartge, a Hamburg-based businessman, will subscribe for the shares at 2 cents apiece comes a day after Bank of New Zealand agreed a new
overdraft facility and the company raised other funds selling shares.
The company had run low on funds after glitches caused it to miss production targets and led to it defaulting on the terms of its previous overdraft. Existing shareholders declined to support a capital raising plan last month.
The new capital will help Botry-Zen to restart output of its ARMOUR-Zen product. Its BOTRY-Zen product, which suffered the glitches, has been produced with better results though bit is too soon to say problems won't recur, the company said.
The stock fell 5% to 1.9 cents today and has plunged about 50% this year.
The company, whose shares trade on the NZX, was set up in 2001 to develop and commercialise biological control agents. It owns an exclusive licence to technology developed with the Horticulture Food Research Institute of New Zealand, Winegrape Tech and Zenith Technology Corp.
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