GISBORNE SHEEP-FARMERS’ FROZEN MEAT AND MERCANTILE COMPANY.

Otago Witness, Issue 3511, 28 June 1921, Page 21

GISBORNE SHEEP-FARMERS’ FROZEN MEAT AND MERCANTILE COMPANY.

7£ PER < 'ENT. MORTG AGE DEBENTURES. A prospectus appears in our adv. rtisingcolumns concerning the issue of ?i per cent, mortgage debentures (free of debenture tax), secured by first mortgage on (he freehold and leasehold lauds, buildings and plant of the Gisborne Shre[ farmer’s Froze n M< at and Mercantile U<>.. J.td. The dchenitires are for ten years to bearer and will be issued in sums of £SO. £IOO, £SOO and £IO,O. The company lias recently acquired tiio property, business ami assets of the Tokomam Sheep Farmers’ .Freezing Co., tho Gisborne Farmers' ('o-nperafive Co., and the freezing works at Hick's Bay, til.* security behind (he issue being valued at £615,263, or ever £2 that investors are invited to subscribe for. It may be pointed out that tho debenture issue is secured by a definite mortgage. This iia-> not been the case with the bonds and naked debentures offered in other in.-utm Jn this t -p t the Gisborne sheep farmers an offering a, better investment than anything Unit Ins yet been placed before the public. Mortgage debentures are those which in addition to acknowledging the debt, give to the hold. rs a specific mortgage of the Company’s propel ty or some part thereof enforceable by sale or foreclosure like an onlinaary mort-. gage. When the charge is fixed, it afif * the title of tho property, and the company can only deal with the property affect< d subject to the charge—that is. in the case of a fixed charge, any asset which is not mentioned in the charge is free to be disposed of by the company at will, but in regard lo the property specifically mentioned it can only be dealt, with by tuo company subject to the charge created bv the debentures. The company was f< rined in 1902, and although its chief aim has been to safeguard producers’ interests rather th in make profit*, its average rate of dividend lias been per cent. It has distributed £174j795 among shareholders, rebates amounting to £100,527, and the* sum of £123.352 of reserves is now to be distributed as share capital. The company's main business is concerned with the killing and freezing of meat, and it operates on clients' account only. Front the point of view of killing and storage capacity its plant is one of the largest in New Zealand. The Kaiti (<iisborne) works will store 422,000 freight carcases, the Tokomaru Bay Works 135.000 and the Hick’s Bay Works 60,000. The full prospectus, copies of which may bo obtained from tiie company's broker or branches of the Bank of New Zealand, particulars are given as required by the Companies’ Act. 1908. of the classes of shares, of the company shares issued ether than for cash, the position of tho company after aequisition of other concerns, and the material contracts and agreements entered into by the company. The minimum subsc-i Iptinu on which thy directors may proceed to allotment is £30.000. and this amount i« already assured by an arrangement with the New Zealand Shipping Company, Ltd., whereby that, company will apply for debentures to the extent of £30,000 (which will be issued as fully paid up) in lieu of debentures of a like amount now held over the assets of the Tokomaru Aheepfanners' Fr. ezing t’onipany. Limited, which last- mem ion.-fl debentures aro being surrendered. The fact that the Shipping Company is prepared to invest £30,000 in these debentures instead of payment in cash for their Tokomaru debenture* may be regarded as an indirath u of lie value of the investment now cfFered.