Wools of New Zealand has extended the deadline for its share
offer to wool growers to February 25.
While the offer, which closed last Friday, had attracted
''positive support'', it remained short of the $5 million
minimum level required, chairman Mark Shadbolt said.
Strong-wool growers had been asked to subscribe for shares at
a ratio of one share for every 2kg of their annual
strong-wool production, with a minimum subscription of 5000
shares at $1 per share.
The company's objective was to raise $10 million, although
the offer would proceed with a minimum of $5 million.
Many growers had expressed concerns relating to the
pre-Christmas workload not allowing enough time to make a
considered decision, and financial pressure because of the
low returns from both wool and lamb as well as current
The extension would ensure growers were given as much time as
possible to consider the offer, while the directors were
''committed and determined to start'', he said.
''The financial pressure that many growers find themselves
under highlights the need for growers to do something for
themselves, invest outside the farm gate and influence the
long-term viability of the sheep industry,'' he said.
Additional considerations included discussions with corporate
wool groups that required more time, the New Zealand Wool
Services International share offer that would fall due at
about the same time as the closing of the Wools of New
Zealand prospectus allowing a possible transfer of funds, and
growers indicating they would subscribe once their lamb
cheques were received.
Mr Shadbolt said support for the prospectus had been
''overwhelmingly positive'' and the directors remained
confident that growers would recognise the value in the
commercial proposition and ''not let ownership of Wools of
New Zealand slip from growers' hands''.
Rabobank's latest agribusiness review showed New Zealand fine
and coarse crossbred and mid-micron prices traded within a
narrow range through November.
Coarse crossbred prices improved 3c/kg over the month, while
fine crossbred and mid-micron prices moved slightly lower.
New Zealand wool exports increased by 22.5% month-on-month in
October to 10,400 tonnes but were slightly lower than October