And he says proof the Wools of NZ commercial model works was seen last month in successes at Europe’s biggest flooring show Domotex in Hannover, Germany. The success included more partners and contracts.
Shadbolt expects plenty of movement on the share offer in the final 7-10 days before the close on February 25. “We are basing that on the last effort to close on December 14; it all happened in the last week.
“Our objective is still the $10m. We are not far from the $5m and all the directors hold the view we will get there. But it would be ideal to move closer to the $10 million. The assumptions in the prospectus have all been based on $10 million and 20 million kilos of wool production.
“We are well ahead on the wool production… we are sitting at an average of 21,000kg per grower and our assumptions were for 10,000kg per grower. I think it is an indication of the size of the grower that’s committing.”
Shadbolt says the offer, open to all strong wool growers, is “an important step towards unifying the industry”.
“We are asking growers to focus on the opportunity. It will only be growers who invest and commit who will own Wools of New Zealand brands. We’ve made some significant progress in the last 12 months; we want growers to own it and benefit from the effort.”
He has just returned from Domotex where Wools of NZ had 29 ranges of their exclusive brand Laneve on show with nine manufacturing partners.
“Last year we had four ranges with three partners, so we have taken a massive step forward in product development, design and the opportunity for Wools of New Zealand to capture the benefit in royalties at point of sale,” he says.
He says some trial contracts with European customers during the past 12 months have been renewed with larger volumes of wool.
Another new contract will move ahead subject
to Wools of NZ being
capitalised.
