Botry Zen has raised virtually all the $1.8 million its shareholders refused to stump up with last year, with news Melic Innovators is investing a further $1 million in the Dunedin biotechnology company.
The company last September sought $1.8 million in fresh capital from shareholders but they rejected it, throwing Botry Zen into crisis.
Melic and German biotechnologyinvestor Claus and Margarita Hartge came to the rescue, buying $700,000 in ordinary shares, and at last Friday's annual meeting it was announced Melic would invest a further $1 million.
Melic, majority-owned by Michael and Patricia Mellon, of Christchurch, previously owned the Mosgiel food producers, Bush Road LtdBotry Zen general manager Stephen Lorimer said the fresh capital would allow the company to realise the potential of the New Zealand market and to market internationally its two grape fungi control products, Botry-Zen and Armour-Zen.
Mr Lorimer said production problems last year were behind the need for more finance, with the volume produced in the year to date exceeding the total volume produced in 2008.
That meant the company was in a position to meet demand, something it had not done in previous years, and Mr Lorimer said the issue of performance variability had also been addressed.
Product registration in the United States was almost complete and there were opportunities in Germany, with both the company's products being tested there.
Mr Lorimer said there were plans to increase production by adding another four fermenters to its Dunedin factory, allowing the company to harvest eight fermenters a week.
"This will see the factory capable of producing enough to satisfy the New Zealand market and provide for initial sales from emerging international markets."
While viticulture had been Botry Zen's initial focus, Mr Lorimer said he was looking at providing agents for use against fungal and bacterial diseases in kiwifruit, apples, black currents and flowers.
