A wealthy South Island entrepreneur plans his own harvest from the wine industry, reports DANIEL RIORDAN.
South Island entrepreneur Howard Paterson is finalising plans to bring a third biotechnology firm to the market.
The company is based around a natural product that counteracts the grape-rot fungus botrytis cinerea, while avoiding the negative
aspects of chemical sprays used to control the fungus.
If successful, the product could have big benefits for the wine industry.
Mr Paterson, thought to be the South Island's richest person with an estimated wealth approaching $100 million, has already floated A2 Corporation and Blis Technologies.
A2's technology identifies milk-lacking proteins thought to be associated with diabetes and heart disease. Blis Technologies is developing a treatment for streptococcal throat infection based on the drug Salivaricin B.
Both companies trade on the unlisted secondary market and their share prices have performed handsomely for investors.
Investment group Southern Capital, which owns stakes in A2 and Blis, is also an investor in the new company, whose structure and name have yet to be finalised.
Southern executive chairman Graeme Wong declined to comment on the botrytis initiative, beyond confirming that a new float was being prepared.
It was probably several weeks away from being finalised.
Botrytis can be treated with chemicals but they typically reduce the quality of grapes and delay their harvest.
In some climates, botrytis causes the grapes to develop gray rot and spoil. In others, the fungus if controlled properly has the beneficial effect of producing sweet late harvest wines, although quantities are typically small.
Called pourriture noble (noble rot) in France and edelfaule in Germany, botrytis must have conditions of high humidity followed by drying, to develop properly.
Meanwhile, Blis said it had raised $6 million from institutions, placing 8.25 million shares at 73c a piece. The company said the issue was substantially oversubscribed.
The money will be used to develop Salivaricin B products and other bacteria-fighting substances from the stable of Salivaricin B pioneer Professor John Tagg, of the University of Otago.
The university is Blis' biggest shareholder with 20 per cent.
The company said it planned to list on the main board next month.
Kelvin Moffatt, a New Zealander working in Britain as general manager of healthcare products for Boots Healthcare International, has been named chief executive. He will take over from founding general manager David Parker.
