30 August 2013
BLIS Technologies Strategy Endorsed
BLIS Technologies (“BLT” or the “Company”) shareholders ratified the capital raising initiatives supporting its business
development strategy at the Annual Shareholders Meeting in Dunedin today.
The shareholders endorsed the placement of 300m shares to parties that will include the existing major shareholder
Edinburgh Equity Nominees Limited and new trade investors Asian Pacific Partners Limited (“APPL”) and NZPR Group and
associated interests (“NZPR”). The placement at 1 cent per share will raise up to $3 million, with subscriptions for
$2.2m already held by the Company. Independent of the placement, shareholders will have the right to apply for up to
$15,000 of shares at no more than 1 cent per share pursuant to a Share Purchase Plan to be conducted later this year for
up to 150 million shares. These initiatives which together are expected to raise $3.5-$4.5 million will support the
commercialisation of its products in New Zealand and international markets.
The Company emphasised to shareholders the significance of strategic alliances with APPL and NZPR, now strengthened
through equity participation. BLIS is collaborating with APPL to identify and develop specific applications for finished
retail products and nutritional formulations in Asia and the Middle East. NZPR played a critical role in obtaining
approval for BLIS K12TM as a food ingredient in China. NZPR is now building the infrastructure in China to distribute
BLIS products and recently reached a major milestone with the appointment of Sinopharm to market oral health products
containing BLIS’s probiotics.
Shareholders were advised that in the first four months of the 2014 financial year the Company met its budgeted trading
contribution on revenues of $560K (48% of total sales revenue for 2013 FY). This reflected increased ingredient sales in
Japan and Europe and a significant increase in New Zealand retail and web based sales. As outlined in the Appraisal
Report supporting the capital raising, an operating loss was still anticipated in the 2014 financial year.
Shareholders were advised that other than a delay to the commissioning of the nutritional formulations plant, business
development in the current year was in line with expectations. The plant is expected to be commissioned in September
with approvals then sought for export of product. The Company will in conjunction with third parties produce and market
milk based formulations mainly for Asian markets. These nutritional formulations will include beverages with BLIS K12TM
and BLIS M18TM ingredients providing functional foods with BLIS trademarks.
Other developments supported by BLIS included the introduction by our New Zealand distributors of a new blister pack
format for BLIS K12TM lozenges to New Zealand pharmacies and the release of companion animal health care product
containing BLIS K12TM in Japan.
Although the Company has yet to achieve profitable operations shareholders were advised that upon completion of the
capital raising initiatives it will have the capital base necessary to support its strategy of pursuing global
ingredient sales in conjunction with its primary distributor Novus Nutrition Brands and the parallel implementation of
consumer oral product strategies with its trade partners including Asia Pacific Partners Ltd, NZPR Group and others.
These strategies will continue to be supported by investment in the underlying science of its proprietary probiotic
strains and regulatory approval processes and are expected to deliver profitable operations in the foreseeable future.