Wool Co has extended the closing date of its offer to December 9, saying it needs more farmers to commit.
The newly established company, a joint venture between Wool Equities Ltd and boutique investment bank Ocean Partners, is hoping to raise $40 million to buy New Zealand Wool Services International (WSI).
In a statement yesterday, chairman Cliff Heath said the past month had been a busy time for many wool growers with lambing and docking, and the company also underestimated the time it would take farmers to get authorisation from trustees and advisers.
There was also an "unfortunate situation" in the North Island where many farmers did not receive notice of meetings to discuss the proposal until after the event. Several further farmer meetings would now be held.
The original closing date of October 28, was set with a very short timeframe to allow Wool Co to negotiate with the receiver of Hubbard associated entities which, at present, controls a 64% shareholding in WSI. That shareholding is on the market.
"When we lowered the minimum investment to $9500 [last month] the effect was a double-edged sword; we would need more farmers committed but we would have a wider base of support for the initiative," Mr Heath said.
If the company was successful, it would demonstrate that its vision for a "farmer-owned vertical entity" was the right one.
If unsuccessful and farmers lost revenues through a scouring monopoly, farmers could not complain they did not have an opportunity to make a difference.
Describing it as "effectively a referendum by chequebook", where farmers had the opportunity to secure the future of the industry, Mr Heath said $9500 was a modest investment when considering the value of the assets the investment could protect.
Cheques would not be banked until February 1 at the earliest.