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Botry-Zen calls in receivers

Wednesday 23rd December 2009

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Botry-Zen has called in the receivers after it failed to raise sufficient new capital to fund its expansion into offshore markets.

The company was required to raise a minimum of $1.5 million under its Share Purchase Plan offering and other funding opportunities.

Botry-Zen hasn’t disclosed how much was raised in the offer, however following a board meeting today it has requested its bankers, Bank of New Zealand, to appoint receivers.

The company said earlier this month that it needed to raise a minimum of $1.5 mill to enable the company to continue to operate and to seriously pursue international opportunities particularly in the United States.

The capital was also to be used to fund the purchase of four new fermenters for the Dunedin factory, to grow production to allow the initial anticipated international demand to be met.

“As international sales of significance will realistically take some time to grow, trading losses are expected to continue for a time, so capital is required for this purpose also,” the directors said.

The Dunedin-based firm was formed in April 2001 to research, develop and commercialise biological control agents for use in the agriculture and horticulture industries.

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