

https://www.scoop.co.nz/stories/BU1012/S00366/independent-due-diligence-from-falkirk.htm

Independent Due Diligence from Falkirk

Friday, 10 December 2010, 3:04 pm
Press Release: Falkirk

Independent Due Diligence from Falkirk

As a direct result of numerous enquiries from its large client base Falkirk Scientific Foundation the private genetic and systems provider has activated a due diligence process on the Woolpartners Co-Operative prospective and investment statement.

The investigative team comprises a forensic accountant, legal counsel and a noted QC complemented by Falkirk directors.

Mr Ian Walsh Principal Director of Falkirk stated that the main areas of concern revolved around the conflict and contradiction from the ‘Road Show’ deliveries of Woolpartners Co-Operative Promoters, the Prospectus and recent media reports.

Growers reported that they were concerned to learn that;

WPI has made a loss over the last 2 years but the directors are saying that it has traded profitably.”

there is no balance sheet or independent valuations in the prospectus.

there is insufficient information to understand the correct currant trading and financial position of Bloch & Behrens inclusive of the $24 Million bank loan held by Bloch & Behrens.

Woolpartners were quoted by the promoters as holding 42% of the NZ Wool clip when in fact reliable industry sources claim that WPI hold only approximately 28%

Intimidation to solicit a positive response from growers has been reported with verified cases being notified to the appropriate authorities.

the internal due diligence assessment, as stated in the prospectus (page 21) could appear unprofessional and self serving due to the incestuous nature of directorships within the wool industry.

the price to buy NZ Woolhandlers is apparently around $14 million. This detail is not mentioned in the Prospectus or at the ‘Road Show’ meetings.

WPI has declined to pay the royalty which funds NZ’s involvement in the Campaign for Wool project.

Mr Walsh stated that the investigative brief would be far reaching to include a ratified dossier generated by Falkirk from 1995 forward to trace the business and marketing behaviours and practices that have influenced the Wool Industry to a negative position. An interim internal report vindicates a number of these concerns raised by growers which will be defined in detail at the end of the brief.

ENDS