KEY POINTS:
Botry-Zen Ltd has an uncertain future after its shareholders scuppered a planned capital raising.
The maker of products to control fungal infections in grapes and other produce was trying to raise $1.8 million through a private placement of convertible notes and stapled options but shareholders only approved three of the four resolutions needed for the plan at a meeting yesterday.
The failure of resolution four, which sought approval under the major transaction provisions of the NZSX listing rules, to pass meant the plan could not proceed.
The company's position has been further complicated by productions difficulties, which it disclosed to the market recently.
The company needs $1.3 million of capital to stay within its existing credit facilities with Bank of New Zealand.
"In these circumstances, unless the board is able to secure new capital the future ability of the company to trade must be considered uncertain," chairman Max Shepherd said.
"The company has advised Bank of New Zealand of the outcome of the special meeting and is in discussions with the bank regarding the company's future.
A possible outcome is that the directors conduct a sale of the business.
- NZPA
