BioVittoria gets boost from FDA notification

Hamilton natural calorie-free sweetener company BioVittoria has reported slightly higher than expected revenue and some sales on the back of its Chinese-grown and manufactured product being officially notified as Generally Regarded As Safe (GRAS) by the United States Food and Drug Administration last month.

The company, whose public share offer failed to gain support and was withdrawn in December, is expecting increased investor confidence now it has beaten its 2009 revenue forecast with a month still to go.

It exceeded its March 2010 forecast by the end of February with revenue of US$4.5 million (NZ$6.45m), compared with a forecast of US$4.4m.

The company's increased confidence was a result of strong interest in PureLo, a non-sugar sweetener made from monk fruit (luo han guo) concentrate, from large North American food and beverage manufacturers following the GRAS notification.

There had already been some sales, BioVittoria managing director David Thorrold said.

"We expect further sales during March and are well positioned for the coming year, with a significant increase in interest following the FDA GRAS notification in February."

He said the result would reassure existing investors and give future ones greater confidence.

BioVittoria said in December that its $20m IPO had not met the minimum subscription level of $8m and the offer had been withdrawn.

Yesterday Mr Thorrold said the company would continue its new capital-raising programme, focusing on private investors in Europe, Asia and the US. It was likely that most of the new funding would come from overseas.

- © Fairfax NZ News