Shareholders in Blis Technologies will meet this month to consider the raising of $3 million through the issue of preference shares.
In a statement to the New Zealand Stock Exchange, chief executive Barry Richardson said it was anticipated the shares would have a face value of $1 and pay a gross annual dividend of 10%.
The issue was underwritten by Edinburgh Security, the investment vehicle of Otago businessmen Tony Offen and Eion Edgar.
Shareholders would also be asked to approve provision for the underwriters to increase their shareholding above the 20% threshold provided for by the Takeover's Code.
Existing shareholders were entitled to apply for one preference share for every 45 fully paid ordinary shares but they could apply for more above their pro rata entitlement.
Mr Richardson has also announced the forfeiture of five million ordinary shares, issued on April 15 at 7.2c.
The shares were described as fully paid but he said they were in fact partly-paid, to the value of 5c.
"The subscriber has failed to meet the calls on the shares and pursuant to the terms of the company's constitution, the shares have been forfeited by the subscriber and cancelled, with the company retaining the $25,000 paid.
The company is reserving its rights in respect of the unpaid amounts."
This left the number of fully paid shares on issue at 138,846,586.
The special meeting will be held on March 31.
