Annual Meeting and Director Nomination Closing Dates

11 October 2012

Wool Equities Limited (“Wool Equities”) will hold its 2012 Annual Meeting of Shareholders at 1.00pm on Thursday 29th November 2012 at the White Horse Inn, 147 Union Street, Milton, South Otago.

For the purposes of NZAX Listing Rule 3.2.2, Wool Equities advises that the closing date for director nominations is Friday 26th October 2012. All nominations must be received by 4pm on that date.

Nominations may only be made by a shareholder entitled to attend and vote at the Annual Meeting.

Contact details for making the nominations are:

Keith Cowan
Company Secretary
Wool Equities Limited
61 Finlays Road
RD5
Christchurch 7675
Ph: 03 347 9064
Fax: 03 347 9728

Wool Equities has entered into a working partnership with a weaving company to produce and market woven woollen products.
The initial focus will be on the production of blanketing and jacketing cloth for heavy outerware using yarns sourced from Wool Equities Limited subsidiary Bruce Woollen Mill Limited.
The weaving operation will be within a separate fully owned subsidiary of Wool Equities Ltd and will trade as Town & Country Textiles (NZ) Limited.

For more information, contact:

• Cliff Heath, Chairman, Wool Equities Ltd, Ph 06 322 9884 or 0274 474 336, tehekenga@farmside.co.nz
• Keith Cowan, General Manager, Wool Equities Ltd, Ph 03 347 9064 or 021 222 7081, keith.cowan@woolequities.co.nz

Wool Equities Limited welcomes the appointment of Micheal Mellon as its new director to its Board following the sudden death, of Director James (Jim) Pringle after a very short illness last month.

For more information, contact:

• Cliff Heath, Chairman, Wool Equities Ltd, Ph 06 322 9884 or 0274 474 336, tehekenga@farmside.co.nz
• Keith Cowan, General Manager, Wool Equities Ltd, Ph 03 347 9064 or 021 222 7081, keith.cowan@woolequities.co.nz

The Board of Wool Equities Ltd is very sad to announce the sudden death, on Friday, of Director James (Jim) Pringle after a very short illness.

Jim is a significant loss to the Board, as he brought with him significant experience in corporate Agri-business from his previous roles as Director and Chairman of both Ravensdown and PPCS (now Silver Fern Farms). Jim will be sadly missed.

This currently leaves the company operating outside of its constitution which requires the company to have a minimum of five Directors.

The company has started a search for a replacement Director and expects to comply with its constitution with the appointment of a new independent director within the next month.

For more information, contact:

• Cliff Heath, Chairman, Wool Equities Ltd, Ph 06 322 9884 or 0274 474 336, tehekenga@farmside.co.nz
• Keith Cowan, General Manager, Wool Equities Ltd, Ph 03 347 9064 or 021 222 7081, keith.cowan@woolequities.co.nz

Wool Equities Limited has today entered into a joint venture with a property investment company and they have today purchased the historic woollen mill in Milton, South Otago, currently operated by Bruce Woollen Mill Limited and other tenants.

For more information, contact:

• Cliff Heath, Chairman, Wool Equities Ltd, Ph 06 322 9884 or 0274 474 336, tehekenga@farmside.co.nz
• Keith Cowan, General Manager, Wool Equities Ltd, Ph 03 347 9064 or 021 222 7081, keith.cowan@woolequities.co.nz

Wool Equities today became a 77% owner in the newly registered company Bruce Woollen Mill Limited. The company has purchased the bulk of the operating assets of QualitYarns Ltd a wool spinning company based in Milton, South Otago.

Bruce Woollen Mill Limited will cement itself as the cornerstone spinning company for specialist yarns for the innovative New Zealand wool based textiles sector, hand knitters, machine knitters and fabric weavers. The new company will continue to operate out of the existing Milton mill which has been the site for the production of yarn and wool based textiles since it was formed by a group of farmers in 1897.

The Board Bruce Woollen Mill Ltd will be
Independent Chairman Gordon Riach - of the Wool Company Taihape
Marnie Kelly - of Touch Yarns, Alexandra
John Stevens - of Shalimar Knitwear, Christchurch
Clifford Heath from Wool Equities Ltd, and
Keith Cowan also from Wool Equities Ltd, who is also the Company Secretary

Mr. Lui Gundersen formerly of Feltex and Godfrey Hirst has been appointed to manage the Milton mill and commences employment on the 26th of April 2012.

The balance of the shares will be held by11 industry participants who will be customers of mill.

The company has a strong forward order book and intends to start yarn production on Tuesday the 1st of May 2012.

Wool Equities Limited as part of a consortium completed the purchase of the plant of Qualityarns Limited in Milton today.

The new company is to be known as Bruce Woollen Mill Ltd and Wool Equities Limited will have a shareholding of 67% in this company.

The other members of the consortium were previously customers of Qualityarns Limited and are committed to keep the mill going to supply high quality wool based yarns to their respective businesses thus ensuring on going orders for the new company.

Wool Equities Limited sees this investment as the first step in the revival of the non carpet wool textiles sector in New Zealand and further as the catalyst to unite wool based manufacturing business.
 

The Directors of Wool Equities Ltd wish to advise the results of their Annual Meeting held today.

There were three nominations received at the closing date of Friday 21st October 2011 for the three vacant positions. The three nominations were Jim Pringle and Hugh Taylor who offered themselves for re-election, and Kevin Arscott who offered himself for election. All three nominations were duly elected.

For more information, contact:

• Cliff Heath, Chairman, Wool Equities Ltd, Ph 06 322 9884 or 0274 474 336, tehekenga@farmside.co.nz

• Keith Cowan, General Manager, Wool Equities Ltd, Ph 03 347 9064 or
021 222 7081, keith.cowan@woolequities.co.nz
 

The Directors of Wool Equities Ltd wish to advise the results of their Special Meeting held today.

The Resolution that the Constitution of the Company be altered was passed.

The Resolution that the Company approve the issue of up to 154,726,790 Wool Investment Preference Shares at an issue price of $0.50 per share as a non-renounceable rights issue was passed.

The Resolution that the ordinary shares in the Company be consolidated immediately after the record date for the offer of Wool Investment Preference Shares and prior to the issue of the Wool Investment Preference Shares was passed.

For more information, contact:

• Cliff Heath, Chairman, Wool Equities Ltd, Ph 06 322 9884 or 0274 474 336, tehekenga@farmside.co.nz

• Keith Cowan, General Manager, Wool Equities Ltd, Ph 03 347 9064 or
021 222 7081, keith.cowan@woolequities.co.nz
 

The Future of the New Zealand Wool Industry is in your hands

At Wool Equities, we recognize that your income from wool is often the cream on the top and that it is only in this past year that wool has become profitable for you. We are concerned that continued profitability is at risk due to the proposed sale of approximately 64% of New Zealand’s largest independent wool scouring and exporting company, New Zealand Wool Services International Ltd (NZWSI), to Cavalier Wool Holdings Ltd.

As a very profitable wool trading company, NZWSI assists in underpinning the international price of your wool. They achieve this through their very successful selling and processing of over 30% of the New Zealand wool clip.

The Commerce Commission has given permission for Cavalier Wool Holdings Ltd to purchase NZWSI – creating a wool scouring monopoly, and dismantling NZWSI. We believe this monopoly and closure of NZWSI could cause a reduction of up to $2/kg for all wool sold. This belief has been supported in the Commerce Commission’s June 2011 final decision which concludes that “higher post-acquisition scouring prices would not be simply absorbed or passed on. Instead, increased prices would be likely to translate into lower margins for growers.”

As a representative of over 9,500 New Zealand’s wool growers (almost 80% of New Zealand’s sheep farmers), Wool Equities is working hard to ensure this does not happen through the formation of the NZ Wool Investment Co. (Wool Co) but we need your help.

We are holding a series of meetings to discuss a proposal to protect your wool cheques for the future. We urge you to please join us to understand how you can assist in the consolidation of the wool industry and ensure that wool scouring assets remain in farmer ownership before it is too late.

I look forward to meeting with you.

Cliff Heath
Chairman Wool Equities Ltd and NZ Wool Investment Co Ltd (Wool Co)

The Future of the New Zealand Wool Industry is in your hands

(PDF 773Kb)

Supreme Court ends Saxmere litigation

In a judgment released today, in proceedings between Saxmere Company Limited and the Wool Board’s statutory successor, the Supreme Court brought the long running case to an end.  The Court declined an application from Saxmere for leave to appeal a second Court of Appeal judgment upholding the lawfulness of the Board’s merino sector funding decisions.

The judgment now ends any claim against the validity of the Wool Board’s funding decisions for merino wool marketing programmes dating back to 1998.

 End of the road

Wool Board Disestablishment Company Limited (DisCo) chairman Bruce Munro has welcomed the decision.  “The Supreme Court has once and for all ended this long-running case.  The factual findings against Saxmere were so overwhelmingly in favour of the Wool Board that the Court agreed there was no point in granting leave for a further appeal.

“DisCo has always believed that the Wool Board’s funding decisions in the merino sector were reasonable, lawful and fair.  That has been recognised by the Court of Appeal in two hearings, and the Supreme Court has now twice declined Saxmere leave to appeal the merits of various Wool Board decisions.  Saxmere has no option but to live with the Court’s decision.  This is the end of a long and tortuous road.”

Mr Munro said it has been very frustrating that this case had been extended through accusations of apparent bias of one of three Court of Appeal Judges who first heard the Saxmere appeal in 2007, and a further application for leave to appeal the merits of the Court of Appeal decisions.  “The judgment confirms there was no real bias.  The facts of the case were against Saxmere from the outset”, he said.

Further distribution of Wool Board cash assets

Mr Munro said he was concerned that a further distribution of the Wool Board’s remaining cash assets had been held up so long but that DisCo was now in a position to progress this.  “Around $7 million has effectively been frozen until DisCo resolved all claims against the former Board’s assets.  We can now get on with the task we were mandated by legislation to undertake – get these assets into the hands of qualifying wool growers.”

Mr Munro said there were a few administrative matters resulting from the protracted legal proceedings that now needed to be resolved, including costs awarded by the Courts in DisCo’s favour and with the Crown arising from the events of the first hearing, but he anticipated these would be resolved relatively quickly. 

Christchurch, New Zealand

Wool Equities Limited at its Annual General Meeting today has made the following announcements:

Considerable Progress for Shareholders

Wool Equities Limited rugs and broadloom carpets are now on sale in 85 USA retail stores.

The Wool Connextions “Woolonline” electronic auction system in which Wool Equities Limited has a cornerstone shareholding is capturing significant volume, and is providing savings back to wool growers.

Several investment opportunities, have been evaluated by Wool Equities Limited and dismissed, some are pending, and others are already delivering results and providing Wool Equities Limited and their partners with positive cashflow.

Wool Equities continue to look for new opportunities which are based upon entering into working relationships or partnerships with existing enterprises, be they in New Zealand or off-shore.

Capital Requirements

To realise all the opportunities identified to their fullest extent, Wool Equities Limited will require more capital. The board sees the options for obtaining more funding are:

1. Disco

   The body of funds retained in the Wool Board Disestablishment Company is potentially accessible to Wool Equities Limited on completion of litigation. This outcome currently sits in limbo awaiting confirmation of a request or otherwise from Saxmere to seek leave to appeal to the Supreme Court in regard to the judgment issued by the Court of Appeal on the 17th of November. That limbo period ends on Wednesday 15th December 2010.

2. PGP or Primary Growth Partnerships

   Your company has made three specific applications to PGP, all of which have been rejected.
   It is clear there is no appetite within Government for projects that will inject growth of financial returns for wool and wool based products to New Zealand. They perhaps only see growth in terms of volume rather than value, primarily to be achieved by new science.

3. A Shareholder Rights Issue

   The Board will work through the parameters over the next two months and we expect to present shareholders with a very clear plan for expansion of the business in the New Year, and the funding that is required to achieve that expansion.

Shareholder Cap

To ensure the control of Wool Equities Limited is retained by the original loyal wool grower shareholders, the 5% limit on the number of shares held by any single shareholder has been re-introduced and accepted at this years Annual General Meeting.

Director Appointments

Peter McPartlin was elected by shareholders to the Board of Directors having been seconded to the Board during the year. Cliff Heath was re-elected to the Board of Directors unopposed.

For further information:
Keith Cowan, Wool Equities Limited, Ph +64 3 347 9064

Wool Equities Ltd is pleased to advise its wool grower shareholders that it has launched its first range of premium New Zealand wool rugs into 35 retail stores throughout USA, plus from early December, two new broadloom carpet ranges in 85 USA retail stores.

The product now on sale, includes a USA designed set of Nepalese manufactured rugs, and two ranges of Australian made broadloom carpet.

These products have been designed and manufactured on contract for Wool Equities Ltd using wool and yarn from New Zealand. The rugs are launched as a joint venture with Romney NZ Limited called Romney Rugs NZ Limited while the broadloom products have been made with the assistance of Christchurch Yarns Limited.

The broadloom carpet will be sold in 85 specialty “designer only access” stores. Wool Equities Ltd is grateful for the entry and support they have received from Wool Marketing Enterprises in gaining quick access to these outlets through their Just Shorn brand.

The “on the ground in USA” logistics set up by Wool Equities Limited includes warehousing, invoicing, distribution, merchandising and sales. These same logistical services can also be made available for utilization by manufacturers of other New Zealand wool products. Some New Zealand manufacturers have already entered discussions with Wool Equities Limited to take advantage of this USA market penetration.

Over the past 12 months, the directors of Wool Equities Ltd have met with and visited a large number of local wool processing companies. They believe it is vital the wool processing capability currently within New Zealand is retained. They seek further proposals for evaluation and are currently working with a number of companies to see how best to assist them be more successful.

Wool Equities Limited point of sale rug brochure can be downloaded from www.woolequities.co.nz

For further information:
Keith Cowan, Wool Equities Limited, Ph +64 3 347 9064 Mob +64 21 222 7081

Christchurch, New Zealand
October 28, 2010

Wool Equities Limited has today announced a new formal alliance with two other partners in the wool industry which is designed to modernise the manner in which both processed and unprocessed wool is sold in New Zealand.

For over 100 years the “open cry” auction system has been used for the sale of greasy wool, but in recent years this system has been increasingly expensive to wool growers, slow to execute, and has provided inconsistent results for wool sellers.

This move by Wool Equities Limited takes a leadership position in supporting the Minister of Agriculture’s Wool Taskforce Key Recommendation 4 - "PLAY THE GAME HARDER. The sector needs to be as efficient as possible and drive supply chain optimization"

Wool Equities has partnered with Wool Connextions Limited and Wool Online Limited to support a new sales system that completely bypasses the antiquated open cry auctions, and which uses 21st Century technology to improve wool logistics efficiencies and improve wool returns to growers.

Wool Online is a new internet-based wool sales system which has been designed and developed by Wool Online Limited, a private joint venture company formed by Wool Connextions Limited, a Canterbury-based Wool Facilitator and Appraiser, and Golden Micro Solutions Limited, a Marlborough-based software development company.

The new system has proven itself very robust over the last 18 months of live testing. With sales of over 90,000 bales transacted already, and consistent pre-auction valuing of wool by Wool Connections Limited, the system has gained the confidence and full support of all major wool exporters and all 32 WoolFirst merchants in New Zealand.

Wool Online is very simple for wool merchants and exporters alike to use. Now that most New Zealanders are conversant with selling and buying on internet auction sites, the concepts of electronic trading are no longer foreign. With the potential to trade wool 5 days a week, the time required to sell clips can be dramatically reduced. Wool Online is capable of selling not only greasy wool, but also slipe and processed wool.

Wool Equities Limited role in the new alliance is to encourage the rapid acceleration of the uptake in use of this revolutionary e-Commerce auction/tender system. Wool Equities’ 7,800 wool grower shareholders will all be encouraged to participate by selling their wool clip through the new system.

Wool growers have told us the costs they have to pay to sell their wool through the open cry auction system vary considerably from $40/bale to $80/bale.

In comparison, when growers request that their local WoolFirst merchant to sell their wool clip through the Wool Online auction system, costs will be around $30/bale.

Projected savings to New Zealand wool growers based on typical auction selling costs on latest auction volumes of 550,000 bales will be a minimum of $16.5 million. And all of these savings are made without increasing the purchase price of wool, and without the requirement for growers to be locked into a pre-determined sales contract.

For further information:
Keith Cowan, Wool Equities Limited, Ph +64 3 347 9064

Annual Report 2010

The Company announced today that:

• Wool Advancement Group representatives Messrs J T Pringle, C P A Stewart and H G E Taylor joined the Board of Directors with effect from 8 September 2009.
• Mr Clifford Heath has been appointed as Chairman of the Board.

For further information contact:
Cliff Heath
Chairman
Wool Equities Limited
Phone 027 447 4336

The Company announced today that:

• Messrs D B Henry, A P Kelly, A R Polson, A J Pearce, and J H von Roy have resigned as Directors of Wool Equities Ltd, with effect 7 September 2009.
• James West, Group General Manager, has elected to take a redundancy package with effect 30 September 2009.
• A further announcement will be made in relation to Director appointments.

For further information contact:
James West
Group General Manager
Wool Equities Limited
Phone 03-325 3535 or 027 296 4402

At a Special Meeting of the Company held on 30 June 2009, shareholders approved:

1. The sale of Keratec Ltd to Keraplast Technologies, Inc.
2. An offer by the Company to buy back two Wool Equities shares for every three shares held by any shareholder, with the ability for shareholders to oversubscribe (that is, to offer all their shares for sale).
3. That if the Company has more than $1.9 million cash on hand following completion of the buyback, the business model will change from a biotech focus to a wool development focus.
4. Directors to appoint a liquidator if the Company has less than $1.9 million cash on hand following completion of the buyback.

The sale of Keratec to Keraplast Technologies, Inc. was completed on 30 June 2009 and the buyback offer has closed with effect 5:00pm on 2 September 2009.
As a result of the buyback offer, the Company will acquire 8,238,996 shares at 17.4 cents per share. The total number of shares on issue will reduce from 23,927,952 to 15,688,956. The number of shareholders reduces from 9,250 to 7,944. It is anticipated that the cash will be paid to shareholders who participated in the buyback on or before 15 September 2009. After this payment has been completed, the Company forecasts to have $2.5 million cash on hand. As the forecast cash exceeds the $1.9 million cash threshold, the Company’s business model will change to a wool development focus under a new Board. A further announcement will be made regarding the Board transition.

For further information contact:
James West
Group General Manager
Wool Equities Limited
Phone 027 296 4402

Annual results 2008/2009

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Prior Notice of Acquisition of Securities

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Keratec Sale Completion and WEL Board Appointments

(PDF 57Kb)

Wool Equities enters into Conditional Sale and Purchase Agreement for the Sale of Keratec

(PDF 60Kb)