CropLogic put into voluntary administration

A hemp-growing trial failed in the US in one of the challenges faced by CropLogic. Photo / file

New Zealand agri-tech company CropLogic has appointed voluntary administrators after it failed to recapitalise the business.

Chairman Steve Wakefield told the Australian Securities Exchange on July 23 the board had appointed Craig Melhuish and Christine Johnston of Nexia New Zealand as voluntary administrators of CropLogic and Craig Bolwell of Bolwell Corporate Advisory as liquidator of CropLogic Australia Pty.

"The board of CLI is disappointed that despite its best efforts, a recapitalisation of the company could not be concluded, and due to the company's lack of solvency, this was the only appropriate course of action."

Wakefield said the directors would continue to work with the company's administrators to help them achieve the best outcome for all stakeholders.

Chief executive James Cooper-Jones resigned last month.

In February CropLogic said it was reviewing its operations and financial situation because of the company's trial hemp farm crop failure, as well as market conditions out of its control, including the drop in the CBD hemp price, increasing wage pressure and the impacts of the Covid-19 pandemic on capital markets and global travel.

During this process two of the company's US subsidiaries, ProAg CropLogic and LogicalCropping were dissolved.

CropLogic was founded in 2010 and stemmed from intellectual property from the New Zealand Institute for Plant and Food research.

Companies office records show its biggest shareholder is Gibraltar-based Adamo Investments, with a 46.4 per cent stake.

Most other investors are Australian, although Innovative Software, a company owned by Christchurch-based Wakefield, has a 1.4 per cent share and Powerhouse Ventures owns 1.25 per cent.

It listed on the ASX in 2017. It last traded at A3.1c.