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.