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Home / Business

Fungus-fighting company takes aim at wine scourge

26 Jul, 2001 08:59 AM2 mins to read

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By DANIEL RIORDAN

South Island entrepreneur Howard Paterson has started another biotechnology company - this one aimed at one of the wine industry's scourges, the fungus botrytis cinerea.

Botry-Zen wants to raise $5 million from private investors, and will register a prospectus within weeks.

The company's shares will trade on the Stock Exchange's secondary board.

As foreshadowed in the Business Herald last month, the company is based on a natural organism, also called Botry-Zen, that combats plants diseases caused by botrytis, also known as grape rot.

The company's initial focus will be grapes, but it also will use the product to combat botrytis in berry fruits, tomatoes, cut flowers, lettuces, cabbages and kiwifruit.

The patented technology was developed at HortResearch, the crown research institute at Ruakura, over several years, initially for use with kiwifruit.

The Wine Institute, the Grapegrowers Association, the Government's Foundation for Research Science and Technology and several wine companies helped finance the development.

Dunedin biotechnology company Zenith Technology and Howard Paterson were brought in late last year to commercialise the product.

Trials have been successful and Botry-Zen hopes to have its product registered under the Pesticides Act this year.

It will then begin commercial manufacture, distribution and sale from a new factory in Dunedin.

Zenith co-founder Dr Max Shepherd, a former Otago University biology professor, says the company will also seek similar registration in Australia and look to other international markets.

The company's ownership is split among Dr Shepherd, his Zenith co-founder, Dr Cheung-Tak Hung, and Mr Paterson.

Dr Shepherd said the $5 million offer represented about 40 per cent of the current shares.

Other companies associated with Mr Paterson are A2 Corporation, which uses technology to identify milk-lacking proteins thought to be associated with diabetes and heart disease, and Blis Technologies, based on a treatment for streptococcal throat.

A2 trades on the Stock Exchange's secondary board.

Blis will move to the main board on Monday.

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