$4.1 million so far raised for wool capital plan

Wools of New Zealand has managed to secure a total of $4.1 million so far in its efforts to raise capital.

The company, which has extended the deadline for its share offer to wool growers to February 25, has a $5 million minimum level required.

As of Wednesday, $4.1 million had been raised from 552 growers, between them representing about 12 million kg of annual wool production.

The objectives of the directors remained to raise $10 million of capital and to have shareholders who annually produced 20 million kg of wool or more.

Given the number of growers who had indicated they were still to subscribe for shares, directors were confident those objectives would be met, 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.

He urged growers to seriously consider the opportunity and apply for shares as soon as possible because the directors had the discretion to close the subscription list at any point once reaching the minimum capital requirement.

Mr Shadbolt said growers who had already applied for shares had demonstrated their recognition that by owning Wools of New Zealand and investing beyond the farm gate, they would strengthen their long-term profitability.




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