Shareholders in Dunedin-based Blis Technologies yesterday endorsed a share placement to raise up to $3 million to underpin its business development strategy.
Following the annual shareholders' meeting in Dunedin yesterday, Blis chief executive Dr Barry Richardson said the placement at 1c per share could raise up to $3 million, with subscriptions for $2.2 million already held by the company.
The placements included existing major shareholder Edinburgh Equity Nominees Ltd and new trade investors Asian Pacific Partners Ltd, NZPR Group and associated interests, he said.
In a separate independent placement later this year, shareholders can apply for up to $15,000 of 1c shares, totalling up to 150 million shares.
''These initiatives, which together are expected to raise $3.5 million to $4.5 million, will support the commercialisation of its products in New Zealand and international markets,'' Dr Richardson said in a statement.
He said ''strategic alliances'' had been formed with both Asian Pacific and NZPR Group, the former collaborating to identify retail products for Asia and the Middle East, and the latter looking to distribute Blis products in China, having played a ''critical role'' in earlier obtaining Chinese regulatory approval.
Dr Richardson said NZPR Group had also assisted with the appointment of Sinopharm, China's largest distributor of pharmaceutical and healthcare products, which would market oral health products containing Blis products.
For the full trading year to March, Blis reported a $1.85 million loss, its 12th consecutive annual loss which took accumulated losses to an estimated $29.3 million.
Mr Richardson said yesterday that for the first four months of the present financial year, Blis achieved its target revenue of $560,000, from increased ingredient sales in Europe and Japan, but said an operating loss was still anticipated for the 2014 financial year.
