Paynter Timber Announces Plans for E-Commerce
Paynter Timber Announces Plans for E-Commerce Transformation
Paynter Timber Group Limited (PTGL) today announced plans to restructure the company to increase value to its shareholders.
PTGL proposes to divest itself of its timber assets and plans to invest in the growing electronic commerce sector in New Zealand. It has entered a conditional agreement to purchase from Mr Mark Fulton all of the shares in E-Force Limited. It is also proposed that PTGL will be renamed E-Force Limited.
E-Force has been created as a consumer-focused information portal. E-Force will act as an infomediary and is a new concept in New Zealand e-commerce. By inviting users to register as members, E-Force will create a substantial online community. Members will receive opportunities to purchase products and services they have expressed an interest in. E-Force will also seek to provide its members with special offers on products and services as a result of its combined purchasing power.
It is proposed that E-Force members will be able to participate in the success of the company through the issue of share warrants, and therefore benefit from being both a user and a shareholder.
All elements of the proposal are subject to PTGL shareholder approval that will be sought at an EGM early in the New Year. If approval is gained at the EGM, a prospectus and investment statement detailing the E-Force share offer will be issued.
“The e-commerce sector will grow exponentially in New Zealand in the next twelve months,” says PTGL Director, Richmond Paynter. “E-Force will be perfectly positioned to provide its members with online marketplace clarity because of the nature of the membership relationship.”
“We believe that this is an opportune time for PTGL to create value for shareholders by entering the e-commerce sector,” says Mr Paynter.
E-Force expects to create an initial online community of 50,000 through membership and registrations of interest in the share warrant offer.
ELEMENTS FOR SHAREHOLDER APPROVAL
PTGL shareholders will be invited to approve details of the proposal at an EGM early in the New Year. The elements of the proposal are:
PTGL will divest itself of all its timber assets, except for a joint venture with Fletcher Challenge Forests. The Tuatapere Mill, owned by Lindsay & Dixon, a subsidiary of PTGL, will be sold to Mr DHD MacLachlan, a director of PTGL.
acquisition of E-Force on the following terms:
PTGL proposes to purchase all of the shares in E-Force Limited from E-Force owner Mr Mark Fulton. The share cost will be $250,000.
The issue of 2 million share options to Mr Fulton giving the right to subscribe to one ordinary share for each option issued at a price of 25 cents each.
The employment of Mr Fulton on a three-year contract as Chief Executive.
The issue of one million PTGL shares to Mr Fulton.
PTGL will change its name to E-Force Limited.
The issue of 25 million share warrants at five cents each that will entitle the warrant holders to purchase one company share per warrant after the required qualification. The final price of these warrants has yet to be finalised.
The cash issue of one share for every six shares held at the price of 25 cents per share.
The issue of six million options of which two million will be issued to Mr Fulton at 25 cents per share and the balance available to employees of E-Force Limited.
Further information about E-Force can be obtained online at www.eforce.co.nz from Friday 17 December. Registrations of interest regarding the issue of E-Force share warrants can also be made online.
For more information contact:
Bert Aldridge or Rachel Catanach
Ph 64 4 4999-111