Good Response To Waipara Hills Wine Estate Offer
Good Response To Waipara Hills Wine Estate Ltd’s Offer
The directors of Waipara Hills Wine Estate Ltd advise that the response to the public offer of shares has very encouraging but insufficient to fill the issue by the closing date of Friday 10 August 2001.
The directors have, therefore, extended the closing date by a further 21 days to 5.00 p.m. on Friday 31 August 2001.
Commenting on the progress of the issue, the company’s chairman Syd Bradley said “We are very gratified with the response to date. Over 280 investors have applied for in excess of 2,000,000 shares and, this week, we have had strong indications of support from all over the country.
“By way of example I can say that since the 2nd of July just on 1,200 copies of the Prospectus and Investment Statement have been down loaded off our website and 300 of those were this week.
“So as a consequence of these increasing levels of support nationwide the directors have decided to extend the closing date of the public issue”.
Mr Bradley also said that the average investment of approximately 7,100 shares was what the company wanted because shareholders with that size of investment will make use of the benefits available via the Waipara Hills Shareholders Wine Club. “However we would also like to see more larger “retail” investors on our register as well”.
Waipara Hills Wine Estate Ltd’s public issue is for 3,000,000 shares of $1.00 each payable as to 60 cents on application and the balance of 40 cents on or about 31 March 2002. The minimum application is for 2,500 shares ($1,500 payable on application and $1,000 on or before 31 March 2002).
Waipara Hills Wine Estate Ltd has been established for the purpose of producing premium quality award winning wine at a time when New Zealand wine is currently enjoying unprecedented demand internationally and when the domestic market is also experiencing growth.
The capital raising is to enable the company to achieve its goal of quickly reaching significant critical mass rising from an initial grape harvest of 88 tonnes (6369 cases) for vintage 2001 with substantial grape harvests forecast to occur from 2003 (300 tonnes) rising to 500 tonnes by 2006 (in excess of 34,000 cases).
It is intended that the $3,000,000 being raised will be applied towards the purchase of certain assets from the Langdale Wine Company Ltd which includes a vineyard and restaurant, plant, grape contracts and the Langdale brand, ($811,047) $230,833 of capital expenditure, an investment in joint venture wine making assets of $306,000, the provision of working capital ($1,242,620) and issue expenses.