Listed Dunedin biotechnology company Botry-Zen will hold its special meeting on Friday, where its proposed $1.8 million capital raising will be discussed.
After announcing last week its production targets and cashflow could be impaired by a manufacturing problem, a company spokesman said yesterday that discussions were still under way with the Bank of New Zealand and subscribers to the capital raising.
Botry-Zen had raised almost $10 million during the past seven years for its research and development of its Botry-Zen and Armour-Zen grape fungus-fighting products, but its original 10c shares have been trading about 3c.
"The company advises that the proposed capital raising, by way of convertible note and options, must be considered to be uncertain at this time," a company spokesman said.
It had proposed up to $1.8 million convertible notes at an issue price of $1 per note and had received commitments to invest $1.3 million, but requiring shareholder approval.
A disclosure notice to the sharemarket yesterday saw Dunedin-based company Lynwalsh Holdings Ltd sell its 12.18% stake in Botry-Zen.
