PROCERA BREAD

Evening Post, Issue 28, 1 August 1936, Page 12

PROCERA BREAD

DISPOSAL OF RIGHTS

The secretary of Proc'era Bread Process (N.Z.), Ltd. (Mr. P. E. Pattrick) has advised shareholders that a cable has just been received advising that protracted negotiations in connection with the disposal of the international rights of the''company's process have now been .completed on. "very satisfactory terms." . Full details with regard' to the agreement have yet to be received, but, from cables which have come to hand, it is gathered that a new company of £3000 capital is being formed to market the international rights: "We receive 1500 fully-paid shares of £1 each in this company and £2000 cash. The remaining 1500 shares are being purchased by the English company for £5000 sterling. A large and important financial group in Great Britain is purchasing 10,000 shares in tht*' English company—Procera Products, Ltd.— for £10,000 sterling; 5000 of these shares belong to the New Zealand company, so that, with the £2000 mentioned above, we shall receive altogether in cash £7000 sterling. We .still hold 10,000 shares in the English company in one block, and, in addition, have aproximately a further 3000 shares in the English company which we expect to sell in due time. As New Zealand shareholders also hold individually the 15,000 shares in the English company, recently distributed by us as a dividend, you will see that the New Zealand company and its shareholders are entitled to a further substantial share of the proceeds of any sale of our rights in other countries."

Mr. C. W. Salmon reports that he is well satisfied with the development of the English business. The Australian business continues to make excellent progress. Arrangements had been made to send-Mr. J. H. Tucker, Australian sales manager, to England and the United States to investigate the international market, but the agreement regarding the international rights has been completed since he sailed. It is anticipated, however, that the knowledge he will gain overseas will be of considerable advantage to the company on his return.

It is hoped that the share certificates in the English company will be distributed to New Zealfcid shareholders in about three months' time. The negotiations have caused Mr. C. W. Salmon, as well as the other directors, considerable concern and work, states the circular to shareholders, arid it is therefore a source of gratification to them now to report such a satisfactory consummation.