Botry-Zen owes $2.2m

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Biotechnology company Botry-Zen owes a total of $2.2 million to secured and unsecured creditors, says its receiver WHK.

The Dunedin-based NZAX listed business called in the receivers on Wednesday after failing to raise a minimum $1.5 million in a share purchase plan. The NZX has suspended its shares.

Peter Heenan, joint receiver with Matthew Taylor, said $1 million of the total money owed was to the BNZ, and $180,000 to unsecured creditors.

The future of eight staff would depend on a review of the business over the next 14 days, but for now they would remain, Mr Heenan said. He was ``hopeful'' of being able to sell the business.

Botry-Zen had recorded operating losses since listing in 2001. It started in business to help the wine industry fight the fungus infection botrytis.

Earlier this month the company, which had a market capitalisation of $3.2 million, 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 $2 million was raised from all shareholders.

- © Fairfax NZ News