Page 9 Advertisements Column 2

Otago Daily Times, Issue 23831, 10 June 1939, Page 9

ft espy of the Prosper** referred to tn ftfc advertisement hoi 6een filed with the ReoMror of ComponlM at Wemnoton, for registration en the Wfh day of Moy, WS* & copy of this advertisement has been filed with the Registrar of Companies ot Wellington on the 30th day of May, 1939. IP Q»W 'k& vvflO DDO (incorporated tn Now South WaJs».J. £15,000 is being held in reserve for later issue, leaving a balance " --—— ........ .. %|i c . ■■;■; Offered for Public Subscription at 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 Zapital - - £2,045,208 OBJECT OF ISSUE.—The object of thin Issue of Debenture Stock Is Partly to consolidate the Company's secured liabilities and partly to provide additional funds for working capital. TERMS OF ISSUE.— ■ ■ ' . (a) The Debenture Stock now offered for subscription will be issued in deuominations of Five Pounds or multiples thereof, and will be payable as follows.— , £2/10/- per-each £5 of Debenture Stock on application and the balance within 14 days of allotment. Allotment moneys not paid withm the period fixed will be'charged interest at of £6 per cent, per annum. Failure to pay any instalment at the date when it becomes due will render all previous instalments liable to forfeiture subject to <SO days notice by registered post. • . (b) INTEREST at the rate of £si per centum per annum will accrue from use date the Debentures are paid for in full, and will be paid half-yearly on the last (lay of the months of March and September in each year, (c) DEBENTURE CERTIFICATES will be issued for fully paid stock. (d) DEBENTURE-HOLDERS may, at any time prjor to the 30th day of beptember, 1940, exchange their Debenture Stock for 7 per cent. Cumulative Participating Preference Shares of a like amount at par. ■ . it) THE DEBENTURE STOCK js repayable on the 30th day of September, 1943, provided, however, the Company may redeem the Stock at par at any earlier le after the 30th day of September, 1941, subject to 3 months' notice. ILF-YEARLY INTEREST PAYMENTS as well as repayments of this inture Issue will be in Australian Currency. New Zealand Investors should note this advantage. • , ' ' , ' To facilitate the investment of New Zealand funds in this essential Dominion 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. <h) TRUST DEED.—A copy of the Truijjt 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. W. Percival Minell and Ronald V. Frazer. Chartered Accountants (Auat), Sydney. VVHAKATANE 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. '1 hey were planned by one of America's foremost Pulp and Paper Mill Engineers in collaboration with the EnEiueering 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 b.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. I umped 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 imposts annually approximately 10 000 tons 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 £6/16/8 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 arc enabling the Company to enjoy a virtual monopoly of the domestic market, and ensure a steady and increasing demand for its products. For the final six months of 1939 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 oi 20,000 tons of Paper Hoard and 12,000 tons of Ground Wood Pulp, most of the latter being required by the Company for its Paper Board Mill. ANTICIPATED SALES.—During the coming 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 SUPPLlES.—Appreciating the suitability of New Zealandcrown Tinus Inßignis for pulp and paper-making purposes and the comparative cheapness of this principal raw material, when established under large-scale operations, the Directors some 14 years ago embarked 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 t"e Company a permanent supply of low cost wood sufficient to support an output of at least 150,1*1" 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.bc., Ag. Min., BSc Loud, 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 pulp wood Is equal to the world's best pulp wood as a raw material. EARNING CAPACITY.—The Directors consider that the existing plant should earn a nett profit of at least £5 a ton on its Paper Board output. Thus, even on the initial sales estimated for the first year of the Company s opera tion—l2,ooo tons—there should be a total margin of over £60,000, or oyer five times the sum required to meet the annual Debenture Interest, £II,OOO. GOODWILL.—No valuation for goodwill appears In the Balance-Sheet. SECURITY. FOR ISSUE.—The Debenture Stock constitutes n fixed charge on the freehold lands comprising tht Mill Site at Whakatane, together with all buildings, plant and mnchinerv thereon, and also the Company's valuable pulp wood forest at Pukahunui, of which 35,000 acres is owned by the Compnny exclusively. Also its shareholding in the subsidiary Company, Timberlands Woodpulp Extended Limited (owner of the 21,000-acre Matahina Plantation). COPIES OF THE PROSPECTUS.-Copies of the Prosp or from any branch el tltt Union Bank of Australia Ltd., REPAYABLE IN AUSTRALIA BOARO OF DIRECTORS. Chalrmani THEO J. MARKS, Messrs. Robertson and Marks, Architect!, Sydney. Managing Director: H. A. HORROCKS, Whakatane. DIRECTORS! B. T. OOULD, Retired, late General Manager British Traders' Insurance Co., Ltd* . Sydney. H. H. CORBIN, B.Sc, Ag.Edln., B.Sc, Lond., B.Sc, Adel., Auckland g. J. FOBTESCUB, Accountant, Otorohanga. C. A COPELAND, Manufacturer, Sydney. O. S. ORIMP, Public Accountant, Wellington. C. E. KERR, Grazier. Timaru. RAINES W. S. DICKSON, Solicitor, Melbourne C. O. GIBBS, Sawmiller, Auckland. T. R. ANDERSON, Farmer, Stratford. J. O. INGRAM. Managing Director S. G. Ingram and Co.. Ltd., Nelson. The Charge is a first charge on nil the Company's specified assets, except the freehold lands, plant and machinery at Whakatane, which are a prior security for the London Group of Debenture-Holders, hereinafter referred to, amounting .to :top,W6 sterling (equivalent to £70,000 in Australian currency). As, however, £70,000 of the Debenture Stock now offered is being reserved for the purpose of redeeming the Debentures issued to the London Group, the Debenture Stock now offered will then also constitute a first charge on the freeholds of the Mill Site, plant and machinery at Whakatane. , u -- Save as above, the Company is not at liberty to create any mortgage or charge ranking in priority to or pari passu with the Debenture-Holders security. ALLOTMENT TO NON-SHAREHOLDERS.—No allotments will be made to nonShareholders of the Company until the minimum number of Debentures applied for totals not less than £150,000, to the specific intent that upon such allotment to non-Shareholders, repayment of the prior first mortgage debentures issued to the London Group is assured and the allottees secure intcr-alia a first charge on tuo freehold of the Mill site, plant and machinery at Whakatane. AUDITORS' REPORT— The Managing Director, 22nd February, 1059. Whakatane Paper Mills Ltd., Queensland National Bank Chambers, 27 Hunter Street, SYDNEY. THE WHAKATANE PAPER MILLS LIMITED. We have to report that as the Mills of the Company were in course of construction on 30th June, 1038. no trading operations were carried out during the three years to that date.' We further report that no Net Profits were earned nor Dividends paid during the three years to 30th June, 1038. The whole of the general expenses of the Company for that period were charged against Establishment Account and the receipts by way of Interest applied in reduction of such general expenses. No accounts have been made up In respect of any pnrt of the period since 30th June, 1038. Particulars of each clas» of shares of the Company as at 80th June, 1038, 1937 and IWS were a» follows: : 30th JUNE, 193 a Subscribed Capital— .„ . 1,488,970 Ordinary Shares £ «. d. 20,000 7% Cumulative Pref- £ s. a. of £1 each fully erence Shares of £1 t paid 1.485.970 0 0 each, fully paid .. 26,000 0 0 428,159 Ordinary Shares 102,128 7% Cumulative Preof £1 each. ference Shares of £1 Amount paid each. Amount paid thereon 231,322 18 6 thereon .. .... ..28,164 I 8 87,315 Ordinary Shares 371,872 1% Cumulative Preof £1 each unallotted. 2,004,444 Shares ~ .. £1,720,292 18 6 600,000 Shares £54,104 1 3 Subscribed Capital—--1,630,253 Ordinary Shares of £1 each fully paid 873,470 Ordinary Shares of £l each. Amount paid thereon .. .. .. 80,71.1 Ordinary Shares of £1 each, unallotted. 30th JUNE, 1937. 1,650.253 0 0 101,702 i « 2,004,444 Shares .. 26,000 7% Cumulative Preference Shares of £1 each, fully paid .. 26,000 0 0 123.300 7% Cumulative Preference Shares of £1 each. Amount paid thereon 54,693 15 « 350,700 7% Cumulative Preference Shares of £1 each, unallotted. £1.811,955 4 « 500,000 Shares .. £80,003 15 4 Subscribed Capital—--1,829,404 Ordinary Shares of £1 each, fully paid 107,931 Ordinary Shares of £1 each. Amount paid thereon 67,109 Ordinary Shares of £1 each, unallotted. 30tb JUNE, 1938. 1,829,404 0 0 2,004,444 Shares .. .. £1,889,528 18 2 500,000 Share 108,762 7% Cumulative Preference Shares of £1 each, fully paid •• ..108,762 0 0 39,737 7% Cumulative Preference Shares of £1 each. Amount paid thereon 19.107 « * 351,501 7% Cumulative Preference Shares of £1 each, unallotted. £127,869 6 2 PREFERENCE DIVIDEND in arrear to 30th June. 1938. did not exceed £20,000. Yours faithfully, .„„ ROBERTSON, CRANE A GIBBONS, Chartered Accountants (Aust.), Auditors to the Company. BROKERAGE.—A brokerage of 2i per cent, will be paid on the nominal amount of ahy Debentures allotted pursuant to applications bearing the stamp of any member of the Stock Exchanges of Australia and New Zealand. •.'■'■• ■'.,■'' ■>•,'■ . ' '':■''■' , Retaken. :-<■■,.•■_ '"{'4 ITNION BANK OF AUSTRALIA, MKntTlD,^.; MESSRS. CAMPBELL, CAMPBELL AND CAMFSBLL, of Sydney < :.'.:' ; :..' J.,W. WEIGHT, Chartered Aeeou'ntMrt, Sydney. . Registered Officer _ ■. ..■ <•. <J,N. BANK CHAMBERS, 27 Hunter Street, Sydney. . ' *:"■ .■'■:''. .fV«ir,'.Zealand Officer ', ■'.'■■' ■ New. Zealand,- • ■■>■■ .;■:■. : Ornuttxinx BrofeereJ ■<. • ,'-, ;V i"'v- f -' PHILIP PRINO AND CO., Member of fiydney Stocl; ■Xchange., ASSET BACKING.-It will be noted thai If the Msefefcf the Compaq M* (excluding capital app—— log ta £4 to £1; repayable in Australian: Currency. t ■ •-' :„.„;„ \. ■^ TlHil | (2) Security of Capital with sound asset, backing and the advantage of capital nnnStion' through rights of conversion!into Preference Shares.;;'. .;, . (3) An P a2l of regularity iof income, payable, half-yearly in Australian. (4) partidpatlon in a Great National industry with large potential development &&S& SaoYaS' soon changes for official quotation of the Debenture Stock. : . \ ■/-.:•. STATUTORY INFORMATION—The following further Statutory Information la Lfire are no founders, or management, or deferred shares in the capital of the 2.Se°following shares have been Issued by the Company during the ceding the date hereof, namely. 29,915 ordinary shares olOne Pound each issued as fully paid to certain holders of the Company's A and B surrender for such bonds. The following debentures anddebenturc stock have been iwmed wM>* Inl thetWp years preceding the date hereof for a consideration otherwise than In CaS Five m DebenTures of varying amounts, totalling in the aggregate £55,806 (sterling), have been issued in payment of balances owing on plant, machin- . cry arid pulp acquired by the Company. . £60,390 worth of debenture stock of the present issue has been Issued by the Company as security for an aggregate amount of £23,491/10/- (Aust.) owing by the Company for the purchase of plant and machinery, and The Five Debentures and the amounts, totalling £23,491/10/-, are to be paid off out of the proceeds of the present issue. «v ,■ ■ , lV v „.„..• 3. The names and addresses of the persons holding the above-mentioned Debentures and Debenture Stock and the amounts respectively owing (and whicn are to be discharged out of the proceeds of the present issue) are as under:— 4. (a) A. B. Karlstad Mekaniska Verkstad of Sweden .. .. (b) Elof Harisson of Goteburg-Sweden .. ••••„••, ■• (c) John Thompson Water Tube Boilers Limited of England . (d) Belliss & Morcom Limited of England •• (e) Asea Electric Limited of Sweden ;. •,. The above parties are previously referred to a« . "The London Group of Debenture-Holders." (f) Asea Electric Limited of Sweden ...... ... (g) Boving & Company of London .. .. .. .. (h) Kjellbers & Hedberg of Aktiebolag, Sweden .. (i) Messrs. T. J. Marks & H. A. Horroeks of Sydney 25,000 Stg. 10,800 „ 2,739 „ 7,267 „ 10,000 ~, £551806 „ £23,4911 5. No amount has been paid or Is payable for goodwill. No amount has been paid within the two years preceding the date hereof, or Is payable as commission, for subscribing or agreeing to subscribe, or procuring or agreeing to procure subscriptions for any shares in. or Debentures of the Company. The Company reserves the right to pay brokerage up to 5 per cent, on, the nominal amount of any debentures allotted where applications in respect thereof have been received from any person authorised to receive applications i>n behalf of the Company. 6. No amount has been paid within the two years preceding the date hereof, or is intended to be paid to any promoter. 7. There are no material contracts. • V 8. The auditors of the Company are Messrs. Robertson, Crane & Gibbons, Chartered Accountants (Aus.), 117 Pitt Street, Sydney, and tot New Zealand records, J. H. Buddie, Esq., Public Accountant, Rotorua, New Zealand. 9. No part of the proceeds of the issue is to be applied directly or indirectly in the purchase of any business. > The list of applications will be closed on 28th June, 1939. .: FILM OF COMPANY'S OPERATIONS.—A film depicting the Company's Logging and Pulp and Paper-Making operations is being screened in Auckland, Wellington, Christrhurcb and Dunedln. Admission tickets are procurable from any member of the Stock Exchange. , V WE, the undersigned, DO HEREBY, CERTIFY that the above advertisement has been duly approved by Resolution of the Board of Directors of the Company (such Board of Directors being the managing tody thereof) on the 26th day of May, 1939. Signed by the Chairman and (Signed) two other Directora in the THEODORE J. MARKS „*„.„ i presence of: ' °y his authorised agent; G. 8. CRIMP. Chairman. (Signed) (Signed) CO; GIBBS. OI - W a B. BROWN, . J 4 „ „ nrD .Directors. NZ Secretary. (Signed) G. 8. CRIMP,. ; «./,. aecrewry. » Dated this 26th day of May, 1939. BALANCE SHEET OF COMPANY BALANCE SHEET OF UUMrwi. , : . . , tno „ (n , th . nccntu and liabilities of the Company and,its subsidiaries as shown by the Books at Mareh 81st, 1939. Hereunder is a summarised statement of the assets ana namiiues 01 me vwuri»"'_""' , RPKistcrcd Office. . . ,».,,,, ~...,_ j d b the company's aud tors, may be inspected at the Company s Kegisroreo wince. LIABILITIES. Capital—Paid Up • Debenture Stock— Trior London Issue, redeemable ex new Issue •• New Issue •• Reserve for Taxation and Forfeited Shares Reserve n Unclaimed Dividends Sundry Creditors—- . Secured • Unsecured 2045208 Plantation and Forest Properties at Valuation .. •'.'. ~ .V ... 1,080,072 •• V'™ o -*" pulp and Paper MUI-comprlslng Mill Site. Buildings and Plant- : - -^ £ l?'°2s Railway— cost '.'. V. '.'. '.'. 1". .[ tl',W , 07 ' 107 127 203 Logging Plant, Machinery and Equipment (Including £8,870 development 'B9 cost, less depreciation .. ~ .. .'. •• ... •• •« 3°Bo . Stocks of Raw Materials—at cost .. .. .. ._.,-. .... ... _<: "i- 888 £27 10* Commonwealth Loans and Investments. Sundry Debtors and Caan • _ w'rß3 Balances .. .. .• ••, •• •• •• •• •• '■• -Jn'i?? ' 40,787 Establishment and Bond Conversion Account ..: .»• «• .. ... Di»,BT7 £2,228,792 . ' ■ £3,228,792 A. is usual In a business of above nature, the Company has entered Into contract, for the supply of future requirement, of Pulp. Machine Farnlßhlngs, etc. These continuing liabilities are not included in the above statement.