Wellington, July 31 NZPA - Biotechnology company Blis Technologies has signed an Irish marketing and distribution agreement, and raised $500,000 of additional capital through a share subscription agreement.

Dunedin-based Blis develops and manufactures harmless bacteria called probiotics that provide health benefits.

At the company's annual meeting today, shareholders were told Blis had signed the agreement with Irish retail pharmacy distributor The Whelehan Group.

It was expected that Blis would have all its New Zealand retail products sold into Irish pharmacies in a phased roll-out.

Blis chief executive Barry Richardson said the agreement had the provision to expand distribution to Britain in future.

Blis also said it had entered a $500,000 share subscription agreement with commercial investment company Dunedin-based Edinburgh Securities, which was not a Blis shareholder.

The placement of a little more than 7m ordinary shares at an issue price of 7.125c would represent 4.88 percent of the shares on issue in Blis Technologies following the placement.

Under the agreement, the shares would be allotted on a partly paid basis with $100,000 payable on allotment and $400,000 payable no later than March 31, next year, Blis said.

Edinburgh was granted the right, without obligation, to increase its holding in Blis to 19.99 percent, subject to necessary shareholder or regulatory approvals.

Dr Richardson said Blis expected to use the $500,000 to expand its product range and pursue the commercialisation of Blis' product platform in this country and selected international markets.

B ut the company also noted that increasing regulatory approval requirements were making it more difficult to commercialise products in some regions, including New Zealand.

Dr Richardson said that from a regulatory perspective, Blis had freedom to operate in the US nutraceutical market.

That market offered the greatest potential return on effort and would be Blis' focus in the next year.

For the year to the end of March, Blis reported a loss of $617,000, an improvement on a $964,000 loss the previous year, while revenue rose 28 percent to $878,000.

Blis shares were up 0.5c to 8c in mid-afternoon trade today, having ranged between 10c and 4.2c in the past year.

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