Failed Dunedin biotechnology company Botry-zen will be de-listed from the NZX today, with nothing left for shareholders.But receiver Matt Taylor, WHK principal, said he was still talking to parties about selling the company as a going concern. "Negot
Failed Dunedin biotechnology company Botry-zen will be de-listed from the NZX today, with nothing left for shareholders.
But receiver Matt Taylor, WHK principal, said he was still talking to parties about selling the company as a going concern. "Negotiations are underway with more than one party. We're still in there and still trading."
He said the company directors had resigned and believing there would be no return for unsecured creditors, had applied to the NZX for Botry-zen to be de-listed.
"It's not exactly what I'd want them to do in the middle of a receivership."
But Mr Taylor said he would not stand in their way.
In February, WHK lodged a report that did not outline the specific amount available to creditors, as that depended on realising the company's assets. As it was a going concern, this was not disclosed.
"It might have affected what people would offer but we are unlikely to see any return to unsecured creditors."
Secured creditors included Bank of New Zealand ($1.2m), Melic Innovators ($1.1m) - both by way of a GSA, preferential creditors (staff) were owed $47,766 and trade creditors $279, 280.
The company (NZX:BOZ), which went into receivership in December 2009, had no funds available for shareholders after its assets were realised and creditors were repaid, NZX advised.
“Therefore there is no detriment in the shares ceasing quotation or BOZ being de-listed,” the announcement said.
Botry-zen asked BNZ to appoint receivers in December after it failed to raise the required $1.5 million capital under its share purchase plan.
Earlier that month, hopes were raised when a substantial shareholder agreed to subscribe a minimum of $500,000 to a new convertible notes issue, but this was conditional on shareholders subscribing a minimum of $750,000 to the share purchase plan.
It was also conditional on Botry-zen raising a total of $2 million via the share purchase plan and the convertible note issue.
At the time, general manager Stephen Lorimer told NBR it was not an ideal time to be going to the market, but the company did not have a choice.
In January, Mr Taylor said it was working with several parties and the product had a lot of customer support.
Its Botry-zen and Armour-zen products, residue and chemical-free fungicides, were developed specifically to control botrytis cinera fungal infection in grapes (“bunch rot” or “grey mould”) – estimated to cost the New Zealand industry $30 million a year.
In New Zealand, the company sold directly to wineries representing 10,000ha from the 30,000ha of productive vines in the country and had 13 more wineries in the evaluation stage, representing 4830ha.
The company achieved US Environmental Protection Agency approval and has state registration in California.
It hoped to repeat that in Oregon and Washington. Detailed discussions had also been under way with several interested parties in Europe.
