Encos eyes $3.45m for US expansion

By RICHARD WOOD

Christchurch software firm Encos is aiming to raise up to $3.45 million to fund expansion in the United States.

The firm has invested $5 million since its inception in 1995 in developing a paper replacement system for meeting food-processing regulation requirements.

Chief executive Jason Lopas said this had become more important since the 2001 attacks on the US boosted concerns about bioterrorism and other biosecurity issues.

Encos software went on sale mid-2002 and Lopas said it was used in 80 per cent of the New Zealand meat-processing market. Deals had been done in Australia, he said, and the first US clients were ready to sign.

As a complete solution Encos had no competitor, Lopas said. Texas Agricultural and Machinery University had used the software for the past two years and the firm was in talks with Illinois University.

The firm uses consultants in the US for now, but it intends to open a permanent office in Chicago and has more capital-raising plans overseas for this year. Of its 15 staff, half are software developers and the rest are in business development. The firm has had grants from Technology NZ.

Its 140 investors are mostly from agricultural and food-processing sectors in New Zealand and abroad.

Lopas said founder Greg Evans was the largest shareholder, with about 30 per cent of the firm.

The public offering is for three million shares at $1.15 each.