Unlisted Facility Celebrates First Anniversary

News Release
December 13 2004

Unlisted Facility Celebrates First Anniversary

Unlisted, the internet-based security trading platform developed by M-co, the Marketplace Company Limited and its partners, celebrates its first anniversary today.

Unlisted began trading on 13 December 2003, and is owned by Efficient Market Services Ltd, a joint venture between M-co and a number of investors.

M-co is a Wellington-based company that has operated electronic trading and market information systems for the New Zealand electricity market since 1996.

Unlisted was created to satisfy the needs of small to medium-sized companies that want their securities transparently priced and simply traded. Some issuers have come from the old “grey” market which closed earlier this year, while others are new to such a trading facility.

Unlisted opened last year with three issuers and has since grown to 21 with 24 securities quoted and a trading volume now averaging around $130,000 a day.

Recently appointed Unlisted Manager, Bruce Cossill, said today “The company is extremely pleased with the success of Unlisted to date. The number of issuers and the growth in trading volumes and values reflect the strong demand for the service provided.

“Unlisted is a trading facility for companies whose shares would otherwise be traded privately or through the companies’ lawyers or accountants. Trading on Unlisted is done through registered broking firms, and provides a platform for those companies who wish to provide an easy and transparent trading facility for their shareholders.

“We see ourselves as a stepping stone for companies that may one day wish to move on to the NZAX or ultimately the NZX. For companies that have raised capital privately, the ability for investors to freely trade in the shares via Unlisted is an undoubted benefit, providing not only transaction cost savings to the companies but also enabling price discovery.

“We are seeing a broad mix of companies quoted on Unlisted now, including a tourism operator, some wineries, a co-operative and some finance industry firms. In the next couple of months we will undertake some platform enhancements to improve our information storage and communications capability, so it will be easier for our clients to keep their shareholders informed.

“Unlisted is a trading facility that is not a registered stock exchange under the Securities Markets Act. Unlisted issuers are bound by the standard Unlisted terms and conditions as well as by their individual company constitutions. Also all companies trading through Unlisted are subject to the applicable legislation such as the Companies Act 1993, the Fair Trading Act 1986, the Securities Act 1978 and the Commerce Act 1986 as well as common law.”

With 8 brokers currently registered to trade shares for their clients through Unlisted, a total market capitalisation around the NZ$1 billion mark, and discussions with further potential issuers underway, Mr Cossill said Unlisted was well-positioned for further growth.

ENDS

Issued on behalf of M-co, by Sorensen Group.

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