Proposals for a new multimillion-dollar strong-wool buying and marketing co-operative - Wool Partners Co-operative - is seeking a third extension and amending its prospectus in its bid to gain $65 million funding from farmers.
The WPC proposal is arguably one of the biggest issues for the wool industry to consider in decades and forming the co-operative has sparked heated debate and criticism.
There have been two extensions to WPC's original prospectus closing date of October 30, which was pushed out to December 17, then December 31, because of a slow share take-up to get to the minimum $65 million threshold.
WPC chairman Jeff Grant, of Balfour in northern Southland, was contacted yesterday and said WPC was amending its prospectus; but he was unable to update the market yesterday on how much had so far been pledged by farmers.
He said he would give the market a dollar-value in an update in January, saying the third extension would close on February 16.
The funding, in $1 farmer-owned shares for each kilogram of wool produced, would allow WPC to create a co-operative which proposed to build an integrated strong-wool supply chain, with its leverage coming from handling at least 50% of New Zealand's strong wool clip, to be branded and sold in the market.
The day before the December 31 deadline, the New Zealand Council of Wool Exporters released an independent survey it had commissioned, by Horizon Research, which concluded more than 70% of woolgrowers would not be applying for WPC shares; based on an internet survey of 618 woolgrowers.
Mr Grant was aware of the release of the Horizon research, and just as the methodology of an earlier WPC survey research had been criticised, he queried Horizon's and the number of participants.
Mr Grant rejected the Horizon claim that 70% of growers would not be applying for shares, saying the market update in January ''would immediately dispel'' the figure of 70%.
Horizon's survey claimed woolgrowers said they did not feel well informed by WPC's prospectus, a large debt WPC will inherit from Wool Partners International, and also concerns about the directors and management.
While 20.2% said they had bought shares, 70.5% said they had not bought shares and had no intention of doing so.
''This indicates the float could fall well short of its stated minimum required subscription of $65 million from farmers producing 50% or more of the country's strong-wool clip,'' Horizon said.
WPC will inherit a $24 million bank loan from Wool Partners International, which is chaired by former Telecom chief executive Theresa Gattung, who has been fronting public roadshows and telephone conference calls to drum up grower support for WPC.
