As of last Friday, 34 million or 69%, of the 57.5 million eligible supplier investment and rebate shares had been exchanged for a new class of ordinary shares and $19 million in cash had been raised from a rights issue of $1 shares.
With nine days left for shareholders to exchange shares and take up the rights issue, new capital raised was still short of the $50 million to $128 million range the meat co-operative has said could be raised.
Silver Fern Farms (SFF) chief executive Keith Cooper said constitutional changes agreed to by shareholders in July meant an individual or party could own up to 5% of shares in the company but that could be increased to 20% at the board's discretion.
Voting rights would be capped at 5% of shares, but shareholder-suppliers would retain control of the company as the constitution stated they would always own 60% of voting shares.
Mr Cooper said the option of lifting the 5% cap or seeking an outside investor was not being considered and was not plan B should the capital raising fail to generate enough new cash.
"There is nothing established to say that if we don't get `X' we are going to do `Y'," he said in an interview.
What the board decided to do, depended on the amount of new capital committed, he said, but the company has also stated it would still pursue its plans but do so within any financial limits.
The share exchange and cash offer was extended by three weeks on September 18 after 37% of shares were exchanged and $12 million in new capital raised. The new deadline is October 9.
SFF ordinary shares can be freely traded between farmers, or to outside investors, once they have been issued to shareholders, and will be listed on the unlimited market, but control is vested with supplier shareholders who hold 60% of voting shares.
The company has not publicised a specific target for new capital, but has said it hoped for about $80 million. Documentation for shareholders released ahead of the vote said it expected to raise between $50 million and $128 million.
The money would be used to retire debt, strengthen its balance sheet and fund its plate to pasture marketing and branding strategy.
SFF advisers, the Parker O'Connor Trust, valued SFF after liquidity discount at between $204 million and $228 million, with the SFF board assuming a value of $216 million, or the equivalent of $1.40 a share post rights and bonus share issue.
This would make a 5% stake worth $10.8 million and value 20% at more than $43 million.
Brokers and investment analysts have said outside investors in SFF would be discouraged by the lack of voting rights or control, but taking a stake would secure supplies of meat, particularly lamb, at a time when there was a world shortage.
