Wednesday, July 6, 2022

Wools of NZ extends deadline

Wools of New Zealand chairman Mark Shadbolt was surprised the minimum $5 million was not raised in the initial period of the capital raising, but says the result highlights limited farmer cash flows and the level of apathy and frustration in the industry.

The capital raising has been extended out to February 25 next year, from the initial closing date of December 14.

Applications for shares are still being received, Shadbolt said.

The amount raised so far has not been revealed, but had to be very close to the $5m figure to justify the extension, and the directors are still targeting a $10m figure, he said.

“We are getting many clear messages of support and growers are indicating they will subscribe once the lamb cheques are received.’’

WoolsNZ directors were also talking with corporate sheep farmers. These were businesses where boards met just once a month and the six-week period to December 14 had been a bit tight.

A February 25 closing date will also coincide with the expected closure of the takeover offer for New Zealand Wool Services International (WSI) by Lempriere Australia. WoolsNZ is hoping sheep farmer shareholders in WSI will transfer the funds to it.

The capital raising will take a break over Christmas/New Year, but the directors will build up momentum again from mid-January, Shadbolt said.

WoolsNZ was operating business as usual and would be presenting at trade shows in January.

Shadbolt acknowledged the need for an extension mirrored the experience of the much bigger Wool Partners Co-op capital raising two years, with which he was also involved.

“We’ve tried to get across that there is no similarity between the two models,’’ he said. “WoolsNZ is a sales and marketing company set up to work with growers and the industry, and we’re getting a lot of co-operation.’’

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