That prospectus, to source funds to buy out Wool Partners International, should be released next month, but both Alliance Group and Silver Fern Farms, which sell more than 50,000 bales of wool between them, have confirmed they will both consider putting money in the co-operative, provided the prospectus and business plan add up.
"We've got an open mind because we are anxious for farmers to have an alternative positive income stream to support the meat side of their business," Alliance chairman Owen Poole said.
Silver Fern Farms chief executive Keith Cooper said while a farmer-owned wool co-operative was consistent with the company's philosophy, the decision needed to be based on sound business principles.
"It is not a simple yes-no. We have got to exercise good due diligence."
Wool Grower Holdings chairman Jeff Grant said while there were restrictions on what information he could release, he confirmed the final prospectus would differ from that originally proposed.
The plan is still to buy PGG Wrightson's stake in WPI, but it will now involve the purchase of strategic assets in the wool exporter, rather than all its assets.
Details of the final shape of the deal were still being worked through, but Mr Grant said PGG Wrightson backed WGH plans for WPI to be a 100% farmer-owned co-operative.
Mr Poole said in principle he also supported the move, as steps had to be taken to grow the contribution of wool to farmers' income.
Asked if Alliance would consider investing if the business case stacked up, Mr Poole replied "absolutely".
Mr Cooper said SFF would only invest in WGH if the prospectus and investment assessment added up.
He said it would not be a case of meat co-operative shareholders investing twice should the companies buy shares in WGH, as they were two separate wool clips - the farmer's own clip and the clip owned by meat companies.
Earlier this year, the Otago Daily Times reported that growers would be invited to invest up to $1 for every kilogram of greasy wool supplied in a year, with payments of 20c a kg a year spread over five years.
There could be a maximum cap in the number of shares held, as 80% of livestock was owned by between 25% and 30% of growers, but those details have not been released.
WGH was advanced a $10 million loan from PGG Wrightson which it had used to buy half the shares in WPI, and this may have to be repaid, along with interest.