Speirs Group raises $5.9m

NZPA | Tuesday, 9 Feb 2010

Fresh food and Omega-3 company Speirs Group says it has raised more than $5.9 million in equity and medium term debt.

The fundraising was in line with the company's programme to reposition itself within the fresh and functional foods industries, Speirs Group chairman Nelson Speirs said today.

The new funds included $2.82 million in 9 percent fully imputed convertible redeemable preference shares, $1.7m in four year term debt, and $1.38m in equity in partly owned subsidiary Speirs Nutritionals      Partners.

The $1.38m of equity to new investors in Speirs Nutritionals was an 18.7 percent partnership interest. Along with that Speirs Nutritionals had issued $2m by value of additional partnership interests to Speirs Group by way of repayment of $2m loan financing.

Speirs Group now held a 59.6 percent partnership interest in Speirs Nutritionals, which has proprietary technology that masks the smell and taste of omega-3 fish oil, and stabilises the oil.

The process allows large doses of the oils, in the form of an emulsion, to be incorporated into a range of food products.

Speirs Group shares last traded at a year low 25c on February 1. The highest price in the past year was 46c in August.