AN ASSURED RETURN OF 6½ PER CENT FREE OF INCOME TAX.

Press, Volume LVI, Issue 16883, 10 July 1920, Page 10

AN ASSURED RETURN OF 6½ PER CENT FREE OF INCOME TAX.

Everyone knows about Glaxo, and this famous product now presents a unique opportunity for New Zeaianders to participate in its phenomenal success. In order to further extend and develop the business, and to provide for future growth, the Glaxo Manufacturing Company (N.Z.), Ltd., is issuing £100,000, twenty-five-year 6i- -per ceut. debenture stock. This is now offered* to the public in sums of £10 and upwards. The terms on which this stock is issued are liberal, securing to investors an. assured Teturn from a flourishing and rapidly-growing business. The debentures are free of income tax up to tho present assessment under the Land and Income Tax (annual) Act, 1919, and a mortgage over freehold and leasehold properties and fixed assets, amounting to £135,000, fully secures the debentures. The objects of the company are to acquire as-.a going concern the manufacturing department of Glaxo and milk powder products in New Zealand, established by Joseph Nathan and Company, Ltd. That -well-known firm has entered into an agreement with the company to purchase the rt wholo of the output of Glaxo and. first-grade full cream milk powder manufactured at factories operated bv the company. Under this contract Joseph Nathan and Company, Limited, are to pay a. sum equivalent to not less than £7 per ton in excess of the cost price of the manufactured article, and in estimating the cost price, all the expenses of the company are to be taken into consideration, bub not interest on capital. It is proposed to increase tho capacity of the factories to an output of about COOO tons, but even if the present output of 4500 tons were not increased, the company wou'd still derive on the sale of its output under its agreement with Joseph Nathan and Company, Limited, a profit, on the basis of £7 per ton, of £31,0C0. As the interest on the total issue of debenture. stock is only £6500, it is obvious that apart from the tangible assets of the company the holders of the debenture stock will have a firstdass and safe investment, with an ample margin for a satisfactory dividend. -This is an opportunity for safe investment that should not be missed, and intending shareholders should obtain copies of the prospectus and forms of application from the offices of the company in Palmerstoi* North, from Joseph Nathan and Company, Limited, Wellington, or from any branch of the Union Bank of Australia, Limited, or from the local brokers, C. G. and J. H. Aitkcn and Co., Christchurch; Frank Graham and Son, Christchurch: and R. Hill Fisher and Son, Christchurch. 3