Health and skincare firms head into NZX
Two companies involved in health, wellness, and skincare products businesses are headed on to the stock exchange through the backdoor.
Me Today and Good Brand Company will list on the local market through what is known as a reverse listing.
They are being bought by a listed shell company, China Scrap Metal (CSM), for a total of $5.5 million.
The two businesses are controlled by entrepreneurs Grant Baker, Stephen Sinclair, and Michael Kerr, who were involved in the start-up of vodka maker 42 Below, and Ecoya's acquisition of Trilogy. They also have a significant stake in the car sales and finance company, Turners.
"This will give us a really good opportunity to grow the brand and give the brands a profile and obtain early stage capital to expand what we've got," Sinclair said.
He said they already had sales arrangements with the listed pharmacy owning company, Green Cross Health, which had been generating sales.
Sinclair said the company would look to expand sales into Australia and Asia in time.
A backdoor listing on the local exchange was the best and logical place for them to get backing for what was a New Zealand brand and products, he said.
Shareholders in CSM will have a chance to buy shares in the enlarged company, which along with an issue to other new investors is expected to raise another $1m-$1.5m.
The deal is expected to be completed by April next year, after various approvals. The enlarged company will be worth more than $5.5m, and have about $4m available for expansion.
CSM will be renamed Me Today and the three backers of the deal will hold 60.8 percent of the shares.
This article was originally published on RNZ and re-published with permission.
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