Commitments for water shares in Waimea Irrigators Limited’s offer that closed yesterday have exceeded 90 percent, giving the organisation’s leaders confidence they will reach their goal. Undecided landowners are now being urged to apply for water shares while the share price remains at the low initial offer for a further week until 12 April.
Waimea Irrigators Limited (WIL) opened an offer to purchase water shares on 8 February to raise $16.5 million toward its total $38.6 million portion of the Waimea Community Dam. The original closing date was 22 March but the offer was extended by two weeks, expiring 5 April.
WIL Chair Murray King says the organisation fully expects to meet its subscription target of 3,000 shares.
“We are nearly there and we are very confident that applications arriving over the next week will put us over the line,” Mr King says.
The WIL Board agreed to extend the share offer one more week to allow for postal applications sent close to yesterday’s deadline to arrive and be counted and to give undecided landowners their last opportunity at the initial price.
“I suspect some landowners have been taking a wait-and-see approach on this part of the Dam project. Experience from other recent schemes like Opuha and Central Plains tells us that once the initial goal is reached, subscribers start pouring in.
“We want to communicate clearly to those who remain undecided: we expect to reach our goal and now is the time to join us. You’ve got one more week to get in at the initial prospectus price for shares.”
Following the close of this initial offer, WIL intends to increase the purchase price for water shares by approximately 15 percent and then another 2 percent each year thereafter.
Mr King says he’s been speaking to many of his fellow irrigators in recent days.
“Everyone’s been really collaborative and open. There’s a positive spirit amongst us. We aren’t celebrating quite yet, but we are making plans.”
Waimea Irrigators Limited is the issuer and offeror of the financial products found in the Product Disclosure Statement for the Offer of Water Shares in Waimea Irrigators Limited, dated 2 February 2018. This document is available for download on www.waimeairrigators.co.nz. Further copies of the document can be obtained by writing to Waimea Irrigators Limited, PO Box 3171, Richmond 7050 or by email to email@example.com.