- New Zealand Coastal Seafood (NZS) has posted heavier losses in its annual report, resulting from its ongoing expansion since first listing last year
- The company posted an annual comprehensive loss of $6.8 million, compared to a loss of just $188,397 in 2019
- NZCS first listed in mid-July last year, following a reverse takeover through xTV Networks, which resulted more than $4.3 million in non-cash expenses, hampering its bottom line substantially
- However, due to the company’s post-takeover expansion strategy, annual revenue increased 10 per cent to $1.5 million
- New Zealand Coastal Seafood closed 1.85 per cent in the green for 5.5 cents per share
New Zealand Coastal Seafood (NZS) has posted heavier losses in its annual report, resulting from its ongoing expansion since first listing last year.
The company posted an annual comprehensive loss of $6.8 million, compared to a loss of just $188,397 in 2019, with much of the outgoing cash a consequence of its recent acquisition strategy.
After only listing in mid-2019, following a reverse takeover through xTV Networks, the company pursued a series of expansion efforts. However, the reverse takeover incurred a more than $4.3 million in non-cash expenses, dragging the company’s bottom line down substantially.
Ignoring these related expenses, the company still generate a loss of $2.17 million, largely due to its other expansion efforts throughout the year.
As part of the post-RTO expansion plan, the company shifted its focus to the emerging nutraceutical market, while also expanding production of its flagship dried ling maw range.
Toward this end, the company recently acquired Kiwi Dreams International, a New Zealand-based developer of nutraceutical products and ingredients.
The company also expanded its distribution network, signing a supply agreement for its green lip mussel powders and oils with German supplement retailer Dr. Behr, as well as a further purchase agreement with New Zealand-based wholesaler SuperMilkBaba valued at $4.4 million.
Due to the company’s expansion efforts, revenue did not reflect the company’s losses and rose just over 10 per cent to $1.5 million, compared to 2019’s same figures.
Looking forward, the company’s stock performance has seen substantial growth following the end of the financial year, moving up more than 400 per cent since mid-July.
On the back of the strong share price performance, NZCS raised $1.8 million from existing shareholders to bolster funding for the ongoing growth strategy.
New Zealand Coastal Seafood closed 1.85 per cent in the green for 5.5 cents per share.