Friday, July 8, 2022

Wools of NZ capital raiser too close to call

Wools of New Zealand directors were sweating on their capital raising this afternoon, desperate to reach the $5 million level allowing the business to go forward.

“We’re very close but can’t call it yet, we mightn’t know till Monday,’’ chairman Mark Shadbolt said.

“It’s very evident that cockies have left it till the last moment, and we’ve had a surge of support in the last 48 hours and more so in the last 24 hours. We're encouraged by that.’’

Directors were working the phones, contacting sheep farmers thought to support the concept but who may not have subscribed.

The issue of shares for WoolsNZ was due to close on Friday, but the capital raise can be extended until February 25, at the latest.

“That is on the table but we’re determined to get over the minimum and determined to start,’’ Shadbolt said.

“We know farmers are flat out at the moment and that there are cash flow issues. People have said to us that if it was February they could do something.’’

WoolsNZ needs $2.4m to cover issue expenses and repay the debt used to buy the WoolsNZ marketing and technology assets. It had hoped to raise up to $10m in the capital raising.

Shadbolt said he was not thinking about not getting to the $5m minimum. “We won’t back off till we get over the line.’’

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