Comvita is concerned media reports on the result of the recent court case with Waikato University's commercial arm WaikatoLink have given the wrong impression.
Comvita CEO Brett Hewlett is concerned people may infer a larger liability for Comvita than is actually the case.
"It is important our shareholders and other key stakeholders understand the facts," says Brett.


Comvita is clearing the air over the judgment in its complaint with University of Waikato's WaikatoLink.

The Tauranga High Court judgment on June 4 arose out of a dispute that Comvita has been trying to resolve with WaikatoLink for the past two and a half years.
In 2006 the parties signed a comprehensive intellectual property licence and research agreement, covering the application of medical honey in the field of woundcare and skincare.
The value of the agreement was set at $3.5 million paid over three years in instalments, plus an additional $500,000 if certain milestones could be met.
Brett says Comvita relied very heavily upon representations made by WaikatoLink about the stage of progress the research team at the University of Waikato had made in isolating and classifying the active compound behind UMF Manuka honey.
They turned out to be either false or misleading, says Brett. As a result, Comvita sought relief from their obligations to pay WaikatoLink according to the terms of the agreement. Comvita had already paid WaikatoLink $1.5 million in shares and cash and withheld paying the remaining $2 million.
Attempts to resolve the issue through mediation were unsuccessful, says Hewlett, so in April this year, Comvita and WaikatoLink appeared in the High Court of New Zealand.
The result is that Comvita have only to pay a total of $2.5 million to WaikatoLink instead of the original $3.5 million.
Justice Rhys Harrison in his judgment dated June 4 found that WaikatoLink's conduct was misleading, deceptive or false in three material respects. The court granted Comvita $1 million as compensation for its loss or damage.
During the March 2008 financial year, Comvita set aside $2 million to pay the balance of the $3.5 million.
Unless the judgment's appealed, Comvita will now release half of that provision, which will increase Comvita's net earnings before tax by approximately $1 million in the current financial year.
Comvita no longer has a working relationship with WaikatoLink or the University of Waikato, and has instead forged a close working relationship with the University of Auckland, where Comvita's research on honey and other products continues, says Brett.