1 Mar 2013

Hundreds apply for Wools of NZ shares

1:40 pm on 1 March 2013

More than 700 sheep farmers have applied for shares in the company that aims to boost strong wool returns with a grower owned supply and marketing operation.

Wools of New Zealand (WONZ) was seeking to raise up to $10 million from farmers but closed its capital raising this week with applications for shares totalling about $6 million.

Though well short of the target, it was above the $5 million minimum investment needed to carry on.

Chairman Mark Shadbolt said it is significant that about 14.5 million kilograms of wool a year has been committed, more than double the amount expected.

Mr Shadbolt says WONZ is allocating shares to farmers who applied this week and the first priority is to cover loan commitments and the cost of the capital raising.

The company will also start the search for a chief executive.