SeaDragon continues with leadership changes on cusp of commercial production

Monday 29th June 2015

Leadership changes continue at SeaDragon, the Omega 3 fish oils company, with a number of new directors being appointed to add production and supply chain management experience ahead of its move into commercial production.

Independent director Tim Preston and executive director Ross Keeley won’t stand for re-election at the company’s annual meeting on Aug. 24 and independent director Sean Joyce has resigned, effective from today.

The board will be reduced to five with director Jeremy Curnock Cook, who represents 22 percent shareholder BioScience Managers, also stepping down at the AGM. He remains an alternative director to Matthew McNamara, the other BioScience director on the board.

Two new directors to be appointed are Stuart Macintosh, a director of 42.3 percent shareholder Mersea Holdings, a 42.3 percent, and Richard Alderton, appointed interim chief executive last week. The other directors include new chairman Colin Groves and independent director Patrick Geals.

The board has also named Keeley as honorary president. He’s stepping down as chief executive from the end of July after 11 years leading the company.

BioScience Managers last week agreed to advance the company up to $2.5 million via a convertible loan as a precursor to further capital raising. The funds are needed for the company's new Omega-3 fish oil refinery in Nelson, due to be commissioned later this year, which has gone over budget, stretching SeaDragon's balance sheet. The loan converts to equity on the closing of a proposed rights offer, subject to shareholder approval.

SeaDragon reported a $2.8 million loss for the year ended March 31, compared to a profit of $431,000 in 2014, following investment in new sales, marketing, and staff ahead of the refinery start-up.

The company also said it had secured further squalene raw materials that should ensure squalene sales for the 2016 financial year are ahead of 2015.

The company’s shares are currently trading at 1.5 cents and have tumbled 32 percent this year.

BusinessDesk.co.nz

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