Dunedin-based Blis Technologies received a $1 million boost yesterday when shareholder Edinburgh Equity Nominee Ltd exercised an option to purchase one million preference shares at $1 each.
Edinburgh, an investment company of Otago businessmen Tony Offen and Eion Edgar, first took a cornerstone 4.88% shareholding in Blis in mid-2008 for $500,000, which was followed by a rights issue by Blis totalling $2.5 million.
The total $3 million was targeted for working expenditure and capital and to secure more regulatory approvals. Blis develops and manufactures products and ingredients for the oral health care market in New Zealand, Asia, Europe and the United States.
In November, Blis posted a $11,000 loss before tax and finance costs for the six months to September, but that compared favourably with the $405,000 loss for the corresponding period a year earlier.
The improvement was largely because of trading revenue increasing from $158,000 to $663,000 during the reporting period.
Following yesterday's announcement, Edinburgh now owns 52% of Blis preference shares, or 2.85 million shares, which last traded at $2.80, but have not been traded recently. Edinburgh owns 5.05% of Blis' ordinary shares, making it the firm's largest holder of ordinary shares.
Craigs Investment Partners broker Peter McIntyre said the total $3 million raised was to keep Blis operational for three years in order to give it time to develop its market and increase its product presence.
