Wools achieves its threshold figure

Wools of New Zealand has achieved the minimum threshold of $5 million in its share offer, allowing it to proceed with a strong wool grower-owned sales and marketing company.

The milestone was met a week before the offer closes next Monday, having earlier been extended from an initial deadline of December 14.

Strong wool growers were 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 objective was to raise $10 million, although it would proceed with $5 million.

The company was now positioned to pursue its commercial, market pull strategy, putting Wools of New Zealand's brands and market connections to work and further developing its technical and marketing capability for the benefit of its grower shareholders, chairman Mark Shadbolt said.

Achieving the minimum investment represented an opportunity for strong wool growers who had invested and committed to own the Wools of New Zealand brands and assets and be involved in a commercial strategy aimed at long-term profitability.

It was reached through the continued support of growers who recognised the need to invest beyond the farm gate.

That included investors in Wools of New Zealand who had converted some of their loans to the Wools of New Zealand Trust into shares in Wools of New Zealand.

Mr Shadbolt, a Banks Peninsula farmer, anticipated a late rush of applications from farmers. There was still time for growers to commit to the opportunity seriously, he said.