N.Z. REFRIGERATING CO.

Evening Post, Volume XCVIII, Issue 33, 8 August 1919, Page 2

N.Z. REFRIGERATING CO.

The explanation of the rapid rise in the shares of the New Zealand Refrigerating Company, as referred to in the Evening Post yesterday, is now explained by the, following; circular to shaa-e----liolders: — ''The directors feel that the time has arrived/when the -whole question of the company's present capital should be reviewed. The expanding business of the company renders it desirable that a substantial increase in the share capital should be effected. The most careful consideration has been given to the whole position, and the directors now beg to submit the following; scheme for the approval of shareholders : — ■ ;_ ' ■..

! "(I) It is. recommended that the Ivvminal capital of the company be inleased from £300,000 to £1,000,000, by the creation of 700,000 new shares of the denomination of £1 each.

"(2) It is proposed to issue 600,000 of these new shares, at par, to shareholders who are on the register on Wednesday, the 27th day of August, 1919. Each shareholder will be entitled to take up these new shares in the proportion of two shares to each share of his present holding. "(3) It is proposed to make a call of 10s each on the 600,000 new shares, and that a. distribution of £300,000 be made by appropriating that amount from the reserve funds, which will be applied in payment oE the call. "(4). It is further proposed that no portion of the uncalled 10s on.the new shares can be called up until the expiry of at least twelve months from the date of allotment. Should it be necessary.or desirable at any time thereafter that a call should be made, then not more than 2s 6d per share can be called at a time; the intervals between. calls shall be riot less than three months.

"(5) It is further proposed that the new shares shall participate in the final dividend to be declared for the year ending 31st October, 1919. ' "If the above proposals are given effect to, the capital of the company will thereafter stand as follows : —Nominal capital, £1,000,000;' of which subscribed 900,000 shares of £1 each, £900,000; less uncalled 600,000 shares at 10s each, £300,000; total paid up, £600,000. "The directors are confident' that it will be to the benefit of every individual shareholder to take up the full number of shares to which he is entitled. The rearrangement of the capital in accordance with the1 above scheme will substantially strengthen the, whole position of the company, and is strongly recommended by the board as in the best interests of shareholders."