SeaDragon sells Snakk Media stake
Australasia’s largest refiner and blender of high-quality, internationally-certified concentrated fish derived health
supplements, including omega-3 fish oils, SeaDragon (NZX: SEA) moved a step closer to the development of its new Nelson
based refinery with the sale of 10 million shares in Snakk Media.
The shares, which represented 40% of the 25 million shares SeaDragon held, released $900,000 to be invested in the new
refinery. SeaDragon inherited the shares when it joined the NZX by means of reverse takeover of Claridge Capital in late
2012.
SeaDragon Chief Executive, Ross Keeley, said: “We are pleased with the sale of the shares. We will look to sell the
remainder once an offer is made that adequately reflects Snakk Media’s value.
“Our investment in Snakk Media has never been core to our business and we believe the capital is better deployed
leveraging our internationally-recognised expertise in manufacturing high-quality ingredients for health supplement
markets.
“As we set out at our annual meeting in Auckland on Tuesday, SeaDragon faces burgeoning demand for its fish-derived
squalene and Omega-3 oils.
“New Zealand sourced fish oils occupy a hiqh-value niche. Health supplement manufacturers place a premium on our
products, recognising not only the quality of New Zealand sourced raw materials but also the rigour of SeaDragon’s
quality controls.
“In the year to March 31 2013 sales grew to $9 million. While this included two one off krill sales, the company is
confident of solid growth over the next years driven by exports and the major contribution of the new plant.
SeaDragon, in conjunction with a major Belgium company is completing detailed design for the Nelson factory, which will
allow SeaDragon to refine greater quantities of high quality Omega-3 oil. It is also arranging financing for the factory
and is targeting completion in the second half of 2014. The new plant will be complementary to the existing plant, also
in Nelson.
ENDS