4 Nov 2012

Wools of NZ aims to raise $10m for marketing

10:30 am on 4 November 2012

Farmer-owned promotional company Wools of New Zealand has announced its intention to raise $10 million to help market strong wool overseas.

The company was set up with farmer levy money under the old Wool Board and became part of the Wool Partners International joint venture between PGG Wrightson and growers.

That was dismantled a year ago, and Wools of New Zealand is back under farmer ownership in the form of a trust.

Chairman Mark Shadbolt says putting together a prospectus and investment statement for all strong wool growers to consider has taken four months of hard work.

He says the prospectus was registered last week and about 16,000 copies will be mailed to growers, with another 1000 going to people within the industry such as farm accountants and bankers.

Although the objective is to raise $10 million, Mr Shadbolt says the offer will proceed with half that.

The first capital raised will pay for the prospectus, repay $1.7 million in debt and be used for market-driven activities such as new products or new ways of taking wool to the market.

Mr Shadbolt says growers can buy one $1 share for every two kilograms of strong wool production, with a minimum subscription of $5000.