Page 5 Advertisements Column 1

Auckland Star, Volume LXX, Issue 127, 1 June 1939, Page 5

A copy of the Prespertte referred toln tfits .advertisement hos Been fifed wW, We Retfstrar of Companies at Wellington, far registration an We 25th day of Mey. 193« A copy of this advertisement has been filed with the Registrar of Companies ot Wellington on the 30th day of May. 193* Issue at Par £200,000 5i% First Mortgage Debenture Stock THE WHAKATANE PAPER MILLS LTD. (Incorporated in New South Wales.). Already, £68,000 of this attractive issue has been subscribed for in cash and allotted to existing Shareholders of the Company, £15,000 is being held in reserve for later issue, leaving a balance of £117,000 available for the investing public. Now Offered for Public Subscription at Par £117.000 5i% Debenture Stock

The Company was incorporated on the 4th day of August, 1925, under the provisions of the Companies Act of New South Wales. Authorised Capital - £2,504,444 Subscribed Capital - £2,092,162 Paid-up Capital - - £2,045,208 OBJECT OF ISSUE. —The object of this Issue of Debenture Stork is partly to consolidate the Company's secured liabilities and partly to provide additional iunds for working capital. TERMS OF ISSUE — (a) The Debenture Stork now offered for subscription will he issued in denominations of Five Pound* or multiples thereof, and will he payable as follows:— £-/10/- per each £5 of Debenture Stork on application and the _ balance within 14 days of allotment. Allotment moneys not paid within the period fixed will be charged interest at the rate of £(i per cent, per annum. Failure to pay any instalment at the dnte when it becomes due will render all previous instalments liable to forfeiture subject to 'M days notice by registered post. (b) INTEREST at the rate of £5} per centum per annum will accrue from the date the Debentures are paid for in full, and will be paid half-yearly on the last day of the months of March and September in each year. (c) DEBENTURE CERTIFICATES wilt be issued for fully paid stock. (d) DEBENTURE-HOLDERS may, at any time prior t« the 30th day of September, 1940, exchange their Debenture Stock for 7 per cent. Cumulative Participating Preference Shares of a like amount at par. (e) THE DEBENTURE STOCK is repayable on the 30th day of September, 1943, provided, however, the Company may redeem the Stock at par at any earlier time after the 30th day of September. 1041, subject to 3 months' notice. <f) HALF-YEARLY INTEREST PAYMENTS as well as repayments of this Debenture Issue will be in Australian Currency. New Zealand Investors should note this advantage. To facilitate the investment of New Zealand funds in this essential Doninion enterprise, the Company is, however, prepared to accept New Zealand currency for a limited amount of the Debenture Issue at par. (g) If no allotment is made, the deposit will be returned in full. In case the amount of Debenture Stock allotted is less than that applied for, the balance will be applied "in reduction of the amount payable on allotment. (b) TRUST DEED.—A copy of the Trust Deed dated the 10th day of June. 1938, together with the Company's Memorandum and Articles of Association may be inspected at the office of the Company and/or its Solicitors and Bankers at any time during office hours. The Trustees for the Debenture-Holders are Messrs. AV. Percival Minell and Ronald V. Frazer, Chartered Accountants (Aust.), Sydney. WHAKATANE WORKS.—The Company's Pulp and Paper Mills at Whakatane have taken two years to erect and equip, and over £500,000 has been expended thereon. These Swedish works comprise one of the largest industrial units in the Dominion and are the last word in equipment and efficiency. They were planned by one of America's foremost Pulp and Paper Mill Engineers in collaboration with the Engineering Staff of the well-known Swedish firm of Pulp and Paper Machinery Manufacturers, the Karlstad Mekaniska Verkstad, by whom the plant was installed. The Mill Superintendent, Mr. E. Frastad, an expert from Sweden, has been brought to New Zealand by the Company, and other key men have been secured from Swedish, Canadian and American Mills. (1) POWER. Electrical Power is generated by two Steam Turbines of 3300 h.p. each. Steam is generated by two massive boilers, the steam being superheated to a final temperature of 750 degrees Fahrenheit. (2) WATER SUPPLY. There is an unrivalled supply of pure water. Pumped from a nearby river into two half-million-gallon reservoirs, it is passed through a filtration plant, and is thus available for the requirements of the Mill. (3) TRANSPORTATION. The Company has rail and water access to its works at Whakatane. The Works are most modern in every respect, and capable of extensive production at economic cost. READY MARKET FOR OUTPUT.—Although the Mill has been in operation only since March of this year, the Company has substantial orders for its products. Statistics show that over 16,000 tons of board products, to the value of over £300,000 are imported annually into New Zealand. AUSTRALIA AS A MARKET.—Australia imports annually approximately 10,000 tone of Paper Board (over £200,000) most of which is foreign, and the Company is favoured as an exporter to the Commonwealth by preferential tariffs, giving an advantage over foreign board of from £2/15/- to £G/ltS/S per ton. Already the Company has accepted orders for this market. COMPANY FAVOURED BY NEW ZEALAND IMPORT RESTRICTIONS.— The New Zealand Government Exchange Control and Import Selection Regulations are enabling the Company to enjoy a virtual monopoly of the.domestic market, and ensure a steady and increasing demand for its products. For the finnl six months of 1S)S!» overseas importations of board have been cut by nearly 4000 tons, with a consequently increased demand for the Company's products. CAPACITY OF WORKS. —The plant has an annual manufacturing capacity of 20,000 tons of Paper Hoard and 112,000 tons of Ground Wood Pulp, most of the latter being required by the Company for its Paper Board Mill. ANTICIPATED SALES.—During the coining twelve months the Company anticipates making and selling 12,000 tons of Board, and thereafter it should be able to supply the whole of the Dominion's requirements. EXCELLENT WOOD SUPPLIES. —Appreciating the suitability of New Zealandgrown Pinus Insignie for pulp and paper-making purposes and the comparative cheapness of this principal ra-w material, when established under large-scale operations, the Directors some 14 years ago emtiarked on a long-range programme of development work involving the acquisition of some 63,000 acres of virgin country (freehold) and the establishment thereon of 50.000 acres of pulpwood forest at a capital cost approximating £300,000. This work was completed by 1935 and the plantations in their now advanced stage are considerd to be worth over £1,000,000. Within a few years these plantations will afford the Company a permanent supply of low cost wood sufficient to support an output of at least 150,000 tons of pulp per annum. VALUER'S REPORT ON PLANTATION.—The Prospectus reproduces copy ot a valuation report prepared in 1939 by Professor H. Hugh Corbin, B.Sc, Ag. Edin., B.Sc. 1/ond., B.Sc. Adel. The report states that the total valuation of Pulpwood and Land is £1,104,100, and draws attention to the fact that insignis or radiata pine palp wood i> equal to the world's best pulp wood as a raw material. EARNING CAPACITY.—The Directors consider that the existing plant shou <1 earn a nett profit of at least £5 a ton on its Paper Board output. Thus, even *n the initial sales estimated for the first year of the Company's operation—l "2,000 tons—there should be a total margin of over £60,000, or over five timos the sura required to meet the annual Debenture Interest, £11,000. GOODWILL. —No valuation for goodwill appears in the Balance-Sheet. SECURITY FOR ISSUE. —The Debenture Stock constitutes a fixed charge on the freehold lands comprising the Mill Site at Whakatane, together with all buildings, plant and machinery thereon, and also the Company's valuable pulp wood forest at Pukahunui, of which 35,000 acres is owned by the Company exclusively. Also its shareholding in the subsidiary Company, Timberlanda Woodpulp Extended (owuer o| the 21,000-acre Matahina Plantation). COPIES OF THE PROSPECTUS.—Copies of the Pros •cttom-any trench of tbm Beion Bank of Australia Ltd