SeaDragon directors sell shares after accidentally breaching Takeovers Code

Tuesday 26th January 2016

SeaDragon director Stuart Macintosh and former chief executive Ross Keeley sold 7.8 million shares, or 0.2 percent of the company's stock, after they inadvertently breached the Takeovers Code when they acquired stock in last year's rights issue.

Macintosh and Keeley told the Nelson-based company they had been required by the Takeovers Panel to sell the shares acquired in last year's rights issue, which breached the Takeovers Code, SeaDragon said in a statement. Keeley, who left the company last year in an overhaul of SeaDragon's board and management, had also sold shares to invest in his other business interests.

"Both Mr Keeley and Mr Macintosh have confirmed their on-going commitment to SeaDragon and they have advised that they will both retain ownership interests in SeaDragon following these share sales," the company said.

Macintosh owns about 14 percent of SeaDragon via SDMO Trustee, while Keeley's interests have been whittled down to about 2.1 percent through his Merinova entity.

Last year the fish oil products processor raised $10 million through a rights issue and bookbuild to give it enough funds to pay for a new Omega-3 refinery and upgrade its existing Omega-2 facility, attracting honey-based health products maker Comvita as a cornerstone shareholder in the process.

The shares last traded at 1.4 cents, valuing the company at $44 million.

SeaDragon made the announcement after receiving a number of inquiries about the share transactions, and said it wasn't involved in them.

BusinessDesk.co.nz

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