SeaDragon raises $3m from Comvita

Cornerstone investor Comvita has agreed to advance $3 million to SeaDragon via a convertible loan to help the company through the staged exit of a currently difficult Omega-2 market and the build-up of its Omega-3 business.

Last September, Comvita subscribed for $3 million in new shares of SeaDragon, giving it a 13.1 per cent share of the company, which is New Zealand's largest refiner and blender of high-quality fish oils.

Comvita also has options that would potentially allow it to get to between 25.2 per cent and 30.6 per cent of SeaDragon. The additional issuance of the interest-bearing convertible loan would, if approved by shareholders at the AGM in August, increase Comvita's shareholding to between 30.6 per cent and 36.9 per cent, subject to option intakes from shareholders.

"Comvita has long believed New Zealand fish oils can command a premium in the international market," said Comvita chief executive Scott Coulter. "We are committed to a long-term strategy working through SeaDragon and key players in the New Zealand fishing industry to develop a high quality source-to-shelf supply chain that will create sustainable value for the industry and our customers in global markets."

SeaDragon chairman Colin Groves said the company had transformed its business over the past 12 months.