Sharechat Logo

Promisia plans to raise $1.3 mln in rights issue at 40% discount

Thursday 17th November 2016

Text too small?

Promisia Integrative, which makes a dietary supplement for sore joints, plans to raise $1.3 million in a rights issue at a 40 percent discount for working capital.

Under the offer, the Wellington-based company’s shareholders can apply for one new share for every 10 existing shares as at 5pm on Nov. 25 at 3 cents a share. The stock last traded at 5 cents and has soared 233 percent this year.

Promisia's Arthrem dietary supplement is based on an extract from the plant Artemisia annua. More working capital will allow the company to grow a larger crop, ramp up extraction, and maintain higher levels of raw materials and finished stock, it said.

The rights issue includes an oversubscription facility, it said.

This month Promisia said sales in the first 10 months of the year were $2.2 million and October sales topped $300,000, mainly from New Zealand. At the current monthly rate of sales, the company "achieves breakeven or close to breakeven trading", it said.

Promisia is also developing a canine version of its product which it hopes to launch in the second quarter of 2017.

The proprietary extract made from the medicine herb Artemisia annua was originally tested as a malaria treatment in Papua New Guinea. It is grown for Promisia on a farm in Tanzania.

The shell of what is now Promisia first listed in 1983 as Genestock New Zealand, before becoming first Parapine Timber, then Counterpoint Equities and Savoy Equities, before hiring a brand specialist and rebranding as Promisia in December 2013. At its most recent price, the company has a market value of $23.9 million.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement
AOF - Q1 Improved Trading Performance & FY24 Guidance Maintained