Botry-Zen Ltd has put itself up for sale because it is in default with Bank of New Zealand after its shareholders said no to a plan to raise new capital.
The company has engaged PricewaterhouseCoopers as an independent adviser to prepare a report on its financial position and options. The report is expected in a short time frame and will be discussed with BNZ.
The maker of products to control fungal infections in grapes and other produce was trying to raise $1.8 million through a private placement of convertible notes and stapled options but shareholders did not approve all the necessary resolutions at a meeting.
As a consequence the company said it was currently operating in excess of its approved overdraft limit with BNZ and was therefore in default of its facility and security arrangements.
In the absence of a white knight -- and there were currently no talks with one -- a sale of the business was likely.
"The company has received some early expressions of interest and this provides some confidence for believing that a sale could be concluded within a reasonable timeframe."