Botry-Zen mulls options as effort fails

It started in business eight years ago aiming to help the wine industry fight the fungal scourge botrytis, but today NZAX-listed Botry-Zen could announce that the long struggle to improve the health of its own books has defeated directors.

The Dunedin biotech company said yesterday that it was considering its options for continued operation and planning discussions with its bank, after the failure of its latest capital-raising effort.

It has two effective products in the market but has recorded operating losses since it listed in 2001, raising $5 million.

The company expected to make a further announcement today.

Chairman Stephen Higgs said a share purchase plan, which closed on Tuesday, had failed to raise the required $1.5m.

This month the company, which has a market capitalisation of $3.2m, said it had a commitment from an existing shareholder and long-time supporter to subscribe for $500,000 through a convertible note issue, providing a total of $2m was raised from all sources.

- © Fairfax NZ News