Wool Partners Co-operative (WPC) chairman Jeff Grant confirmed yesterday that the share take-up was still short of the $65 million threshold, but requests for an extension from trusts and corporate farm owners and indications from other farmers that they were supportive, had encouraged the board to consider shifting the deadline.
Mr Grant said the prospectus was active up to February 18, so a new deadline would have to be before that date.
The original prospectus was to have closed on October 30 but was extended until today for similar reasons, to allow trusts and corporate farm owners to get approval from their respective boards.
Growers are being asked to buy $1 shares for every kilogram of wool they produce, with the subscription payable over five years.
He would not say what the shortfall was but added that indications of pending support gave the promoters confidence they would reach the $65 million target.
"On the numbers we have ... and what we saw in a poll at the weekend ... we have seen an increasing number of growers saying a co-operative is a good idea."
WPC is looking for funding to create a co-operative to implement an integrated supply chain for strong wool, using the strength from handling 50% or more of the country's strong wool clip to sell New Zealand-branded wool in the market.
It has been greeted by a vocal and at times vicious response from the wool industry. Both Agriculture Minister David Carter and Mr Grant have been accused of conflicts of interest and critics have said WPC has not provided sufficient financial information in its prospectus.
On this last point, they may have a point as the dearth of information about the performance of Wool Partners International, which will morph into WPC, has left a vacuum which has largely been filled by speculation.
WPC may claim that it has met its prospectus requirements, but given the wool industry's inept performance over the last 20 years and a history of an insatiable appetite for cash, a greater level of financial disclosure would have been logical.
WPC plans to spend $17.7 million buying WPI assets including exporter Bloch and Behrens, shares in Wools of New Zealand and settling a Wools of New Zealand payment to WRONZ.
The prospectus said that should WPC meet its threshold, settlement would occur on December 31.
Mr Grant said these details would be worked through when the board considered the extension today.
He was disappointed by the tone of some of the debate, saying that while it was healthy to have discussion, opposition was being led by parties which had a vested interest.
"I find it interesting that this is the only public float in New Zealand business where the opposition is coming from people who don't qualify to invest.
"It would be understandable if there was huge opposition from farmers telling us not to do it, but it is not coming from them."
WPC has run three polls and Mr Grant said support was growing. The latest, taken at the weekend, revealed three out of five growers said farmers should form a co-operative.