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Oceania Natural raises funds for HK office

NZN 19/07/2016 Sophie Boot

Oceania Natural, the food supplements maker which listed on the NXT at the end of March, has money from investors in a joint venture to establish a Hong Kong-based subsidiary.

The company, which produces food supplements derived from manuka honey and noni fruit juice, has raised about $NZ3.5 million from qualified Chinese and New Zealand investors.

The investors collectively hold 49 per cent of the subsidiary, ONL Asia, while Oceania Natural will hold the majority stake.

"Many of these investors maintain exclusive distribution networks: for example, one investor has access to more than 2,000 pharmacies in China," Oceania Natural said.

"Investor subscription and shareholders' agreements have been entered into, to secure this funding."

Oceania Natural also plans to establish its Chinese operational headquarters in Wuxi City, dependent on government approval.

The office will be located in the city's central business district and will showcase Oceania Natural's product range, as well as allowing the company to grow its distribution network into new provinces in China, the company said.

The company is still in discussion with a potential South Korean distribution partner and with New Zealand honey suppliers, it said.

The shares last traded at $2.45 and have nearly quadrupled from the 64 cents per share price they listed at earlier this year.

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