NEDLANDS: New Zealand Coastal Seafoods Limited (NZS) has agreed to acquire 100% of the issued share capital of New Zealand based Nutraceutical Manufacturer and Developer, Kiwi Dreams International Limited (KDI) from the shareholders Tony Dowd, Grant Washington-Smith and Rinku Singh.
The consideration for the Acquisition will be satisfied by the issue of 16 million ordinary fully paid shares in NZCS to the shareholders of KDI which will be subject to voluntary escrow for a period of 12 months from issue
Based in New Zealand, KDI Ingredients is a developer of innovative nutraceutical products and services including ingredient supply, quality and validation, as well as formulation and development.
The Acquisition provides NZCS with immediate access to the lucrative value-added nutraceutical and pharma ingredient sector with NZCS having the benefit of KDI’s key suppliers, clients and technical intellectual property on settlement.
Under the Acquisition Agreement, KDI Managing Director, Tony Dowd will be contracted to NZCS for a minimum one day/week over a 12 month period for the purposes of developing potential high value products including; Mussel Powder and Oils, Marine Based Collagens (Ling Maw and Fish Skin), Seaweed Extracts (Fucoxanthin) and Oyster Powder.
Commenting on the acquisition, New Zealand Coastal Seafoods’ CEO, Andrew Peti, said: “The acquisition of KDI Ingredients is an important step in NZCS’s expansion strategy, as it will provide vertical integration with a nutraceutical ingredient developer and supplier. NZCS has recently recognised significant opportunities in the nutraceutical market, which it wishes to capitalise on.
“Through KDI Ingredients’ key suppliers and intellectual property, coupled with a well-defined product development schedule, NZCS aims to expand into the high growth global nutraceutical market.”
The Acquisition of KDI Ingredients follows the development of a NZCS Collagen Ling Maw nutraceutical product, and is in line with the Company’s strategy to potentially expand revenues streams, by adding greater depth to the existing product line. Through the development of Nutraceutical projects, NZCS has recognised significant opportunities in this high growth market, with the global Nutraceutical market estimated at $230.9 billion in 2018.