Microsoft Word - SEA - CVT Cover note to Announcement V2 - 27 May 2016.docx

27 May 2016

COMVITA INCREASES INTEREST IN SEADRAGON BY WAY OF CONVERTIBLE LOAN

The enclosed announcement was made to the market by SeaDragon (NZX: SEA) today.

By way of background, as part of the capital raising in September 2015, Comvita (NZX: CVT) purchased 13.1% of SEA at a price of $0.008 per share. In addition to the options issued as part of the capital raise at $0.015 per share, CVT was granted further options at $0.008 per share which would potentially allow it to get to between 25.2% and 30.6% of SEA subject to other option uptake from existing shareholders. Both of these options were approved by special shareholder resolution in [December 2015]

The additional issuance of an interest bearing convertible loan by SEA to CVT would, if consented by shareholders at the upcoming AGM, have the effect of increasing CVT's holding in SEA to 30.6-36.6% of the Company, again subject to the level of option uptake from existing shareholders.

Comvita CEO Scott Coulter says: CVT has long believed New Zealand fish oils can command a premium in the international market as the region is synonymous with clean, deep blue oceans and high quality, safe, product. Omega-3 from fish is an important building block in a healthy lifestyle and we are committed to a long term strategy working through SeaDragon and key players in the New Zealand fishing industry to develop a high quality source to shelf supply chain that will create sustainable value for the industry and our customers in global markets.

Neil Craig Mark Sadd

Chair Chief Financial Officer

SeaDragon Limited published this content on 27 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 May 2016 00:15:10 UTC.

Original documenthttp://www.seadragon.co.nz/link/161

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