Small medical products company Blis Technologies has struck a deal with a Swedish company, including a share issue, to give it funds for future growth.
Blis said the long-term strategic partnership with Probi AB would focus on developing, producing, and delivering clinically proven probiotics.
The Swedish firm will be licensed to manufacture and distribute two Blis products, and collaborate on future products.
The Dunedin-based company will issue new shares worth nearly $9.2 million to Probi, giving the Swedish firm a 13 percent cornerstone stake. The price is a 5 percent discount to Blis' average price over the past three weeks.
NZX-listed Blis makes a range of probiotic-based products for dental hygiene, vitamin C and throat infections, and said the two companies would collaborate on research and development of new products.
"This is an exciting opportunity for our company and a significant endorsement of Blis. Probi provides extensive international industry experience and relationships, which will drive collaboration opportunities and revenue growth," Blis chairperson Tony Offen said.
Earlier this year, Blis nearly halved its operating earnings forecast to a little more than $1m, as a sales boost caused by Covid-19 faded.
Probi chief executive Tom Rönnlund said the deal was compelling given Blis' products and position in the market.
"Through this partnership, we will broaden our portfolio and strengthen our position as leaders in the use of clinically documented bacterial strains. Beyond immediate commercial opportunities, this strategic partnership also includes research collaboration to leverage off each other's strengths."