Wellington, Sept 1 NZPA - Botry-Zen Ltd has agreed to sell shares to an investor at 2c a share and has a new loan facility with Bank of New Zealand.

Last month the maker of products to control fungal infections in grapes and other produce said it was examining its options after shareholders failed to approve an $1.8 million capital raising, causing it to breach banking arrangements.

Today the company said it had new $1.2m overdraft facility with Bank of New Zealand and a loan agreement with Melic Innovators Ltd, a company which previously operated Bush Road Ltd, a food processor in Mosgiel, for $500,000 over three years at the BNZ overdraft facility rates.

The company has also agreed to issue 25m shares, equal to 12 percent of its capital, to Melic at 2c a share.

Talks are ongoing with another party to buy 10m shares at 2c each.

The company has experienced production difficulties but said today that recent production results were better.

"But it may be premature to conclude that the recent difficulties will not recur," the company said.

PricewaterhouseCoopers has finished advising the company.

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