AQL Holdings Shareholders Approve Acquisition
AQL Holdings Shareholders Approve Acquisition Of Certified Organics Limited
At a special meeting held in Auckland today, AQL Holdings Limited (AQL) shareholders approved the company’s acquisition of Organic Interceptor Products Limited (OIP). AQL will Aas a result, AQL will change its direction to become a producer of organic products. Following settlement of the transaction all current AQL directors will resign and AQL will change its name to Certified Organics Limited.
AQL is acquiring the OIP shares for NZ$5,150,000 in exchange for the issue of 1,950 million shares to the vendors at 0.25 cents per share, and the payment of $275,000 in cash. A condition of settlement is that AQL has cash reserves of not less than $2 million. In addition to shareholders approving the acquisition of OIP, shareholders also approved the issuing of up to 400 million ordinary shares by private placement at an issue price of 1.1 cents. Funds raised from the issuing of these shares will allow AQL to satisfy the condition relating to cash reserves. It is anticipated sufficient shares will be issued within 14 days to allow final settlement of the acquisition of OIP to be completed.
At the special meeting shareholders also approved the issue of up to 40 million executive options. These options will vest over three years and entitle the holder to subscribe for shares at 2 cents per share.
The new company will produce a range of top quality products which meet international organic certification requirements for agriculture, home and industry. These certified organic products represent a safe alternative to chemical synthetic products.
OIP is the Thames-based developer and owner of what is believed to be the world’s first certified organic weed controller. The company was originally established by brothers Rodney and Stuart Innes to carry out the research and development needed to secure patents for weed control products.
OIP has already had significant overseas interest in its products. In addition to the weed controller they include an organic weed control mat; organic cleaners; and a developing range of human hygiene products, including organic shampoo, which have recently received Certified Organic status from AgriQuality CERTENZ.
The CEO-designate for Certified Organics is Dr Earl Stevens, a biochemist by training, who has spent the last 14 years in marketing, corporate development and general management.
“Now that we’ve got shareholder approval, we’re able to move forward immediately following settlement with our plans to increase grow the business, make key management appointments and begin to take advantage of the ever-increasing global demand for organic products,” he says.
“We’ve already had advanced discussions with three distributors in New Zealand, two in Australia, and others in South Africa and the Netherlands,” says Dr Stevens. “We are planning to introduce a new range of Certified Organic home and garden products in New Zealand within the next couple of months.”