HAPPY VALLEY NUTRITION LIMITED Happy Valley Nutrition Limited (`Happy Valley' or `the Company') to provide the following update with respect to the development of its nutritional grade milk processing facility (`the Facility') in Otorohanga, New Zealand. Over recent months, the Company has maintained and advanced several project-critical areas including funding partnerships, supply agreements and regulatory approvals. In view of those developments, Happy Valley remains fully committed to establishing a milk processing facility for nutritional products based on premium New Zealand ingredients.
Funding discussions with multiple industry and cornerstone investors both domestically and abroad have continued over recent months, following the Company's last investment update. Management has also noted an uptick in momentum and investor interest since the full reopening of New Zealand's borders on 1 May for visa exempt parties and on 1 August 2022 for all parties. The reopening has acted as a catalyst for increased interest from potential funding partners, including financiers and industry participants.
The growing level of interest is also underpinned by ongoing supply chain issues that are still contributing to a shortage of infant formula and dairy products to major-market economies in North America and Europe in particular. With borders fully open, Chairman Kevin Bush will travel to Europe in October for meetings with several financiers and key industry participants. Discussions are ongoing with international offtake customers with respect to presale arrangements for nutritional products to be manufactured at the Facility.
New Zealand farmers have been identified as suppliers of choice for the Facility. Based on negotiations to-date, the Company is aiming to establish pre-sale arrangements for 100% of the Facility's capacity prior to construction. Happy Valley is currently in ongoing discussions with existing groups that have secured first capacity from the Facility along with new potential offtake partners to secure the balance of its initial capacity.
As project development momentum ramps up, Happy Valley continues to maintain compliant with all regulatory requirements and existing consents remaining valid. All relevant land acquisitions have been completed and the project-site remains construction ready. Requisite OIO approvals in accordance with the New Overseas Investment Act (pertaining to foreign investment in New Zealand) remain in place.
Happy Valley also remains fully engaged with community stakeholders and local farming groups, while construction plans for the Facility have been based on a Net Zero Water and Net Zero Carbon design framework.
