Page 7 Advertisements Column 2

Waikato Times, Volume 124, Issue 20819, 1 June 1939, Page 7

A copy of the Prospectus referred to in this advertisement has been filed with the Registrar of Companies at Wellington, for registration on the 25th day of May, A copy of this advertisement has been filed with the Registrar of Companies at Wellington on the 30th day of May, 1939. Issue at Par £200,000 5£% First Mortgage Debenture Stock THE WHAKATANE PAPER MILLS LTD (Incorporated in New South Wales.)' Already, £68,000 of this attractive issue has been subscribed for in cash and allotted to existing Shareholders of the Company, £15,000 is being held in reserve for later issue, leaving a balance of £117,000 available for the investing public. Now Offered for Public Subscription at Par £117.000 Sit Debenture Stock REPAYABLE IN AUSTRALIA 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 Paid-up Capital - - £2,045,208 Chairman: THEO J Managing Director: BOARD OF DIRECTORS. MARKS, Messrs. Robertson and Marks, Architects, Sydney. I. A. HORROCKS, Whakatane. DIRECTORS: OBJECT OF ISSUE. —The object of this 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.— fa) The Debenture Stock now offered for subscription will be issued in denominations 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 within the period fixed will be charged interest at the rate 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 30 days notice by registered post. (b) INTEREST at the rate of £s h per centum per annum will accrue from the date the Debentures are paid for in full, and will be paid half-yearly on the last day 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 prior to the 30th day of September, 1940, exchange their Debenture Stock for 7 per cent. Cumulative Participating Preference Shares of a like amount at par. (e) THE DEBENTURE STOCK is repayable on the 30th day of September, 1943, provided, however, the Company may redeem the Stock at par at any earlier time after the 30th day of September, 1941, subject to 3 months’ notice. (f) HALF-YEARLY INTEREST PAYMENTS as well as repayments of this Debenture Issue will be in Australian Currency. New Zealand Investors I should note this advantage. V 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 Trust 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 (Aust.), Sydney. E. T. GOULD, Retired, late General Manager British Traders’ Insurance Co., Ltd., Sydney. H. H. CORBIN, B.Sc., Ag. Edin., B.Sc., Lond., B.Sc., Adel., Auckland S. J. FORTESCUE, Accountant. Otorohanga. C. A. COPELAND, Manufacturer. Sydney. G. S. CRIMP, Public Accountant, Wellington. C. E. KERR, Grazier, Timaru. RAYNES W. S. DICKSON, Solicitor, Melbourne. C. O. GIBBS. Sawmiller, Auckland. T. R. ANDERSON, Farmer. Stratford. J. G. INGRAM, Managing Director J. G. Ingram and Co., Ltd., Nelson. MESSRS. CAMPBELL. CAMPBELL AND CAMPBELL, of Sydney. J. W. WRIGHT. Chartered 1 'Accountant, Sydney. Registered Office: IMBERS, 27 Q.N. BANK CHAMB New Zealand Office: Whakatane, New Zealand. Hunter Street, Sydney. Organizing Broker* PHILIP PRING AND CO., Member of Sydney Stock Exchange. ASSET BACKING.—It will be noted that if the assets of the Company i taken at valuation, the asset backing of this Debenture Issue Is £7/10/- to taken at valuation, the asset backing of this Debenture Issue Is £7/IQ/» to £L If, on the other hand, the assets are valued on minimum basis—at cost (excluding capital appreciation of the Plantations due to growth) —the backing is £4 to £l. I The charge is a first charge on all 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 £55,80(1 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 Whakatane. 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 inter-alia a first charge on the freehpld of the Mill site, plant and machinery at Whakatane. AUDITORS’ REPORT—22nd February, 1939. WHAKATANE 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. They were planned by one of America’s foremost Pulp and Paper Mill Engineers in collaboration with the Engineering 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 h.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. Pumped from a nearbj 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 10,000 tons of board products, to the value of over £300,000 are imported annually into New Zealand. AUSTRALIA AS A MARKET.—Australia imports 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 toreign board of from £2/15/- to £O/10/8 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 are 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 of 20,000 tons of Paper Board 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 Queensland National Bank Chambers, 27 Hunter Street, SYDNEY. Dear Sir, THE WHAKATANE TAPER MILLS LIMITED. We have to report that as the Mills of the Company were in course of construction on 30th June. 1938, 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 t 0 30th June, 1938 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 part of the period since 30th June, 1938. Particulars of each class of shares of the Company as at 30th June, 19J6, 1937 and 1938 were as SUMMARY OF IMPORTANT FEATURES OF ISSUE—(I) Investment at par in a sound 51 per cent First Mortgage Debenture Stock, repayable in Australian Currency. (2) Security of Capital with sound asset backing and the advantage of capital appreciation ihrough rights of conversion into Preference Shares. (3) An assurance of regularity of income, payable half-yearly in Australian currency. (4) Participation in a Great National Industry with large potential development. (5) A Free Market for the stock. Application will he made as soon as practicable to the Australasian Stock Exchanges for official quotation of the Debenture Stock. STATUTORY INFORMATION. —The following further Statutory Information is supplied : 1. There are no founders, or management, or deferred shares in the capital of tho Company. 2. The following shares have been issued by the Company during the two years preceding the date hereof, namely, 29.915 ordinary shares of One Pound each issued as fully paid to certain holders of the Company's A and B bonds in surrender for such bonds. The following debentures and debenture stock have been issued within the two years preceding the dale hereof for a consideration otherwise than ia cash, namely : • Five Debentures of varying amounts, totalling in the aggregate £55,8011 (sterling), have been issued in payment of balances owing on plant, machinery and pulp acquired by the Company. £00,390 worth of debenture stock of the present issue has been issued by tho Company as security for an aggregate amount of £23.491/10/- (Aust.) owing by the Company for the purchase of additional plant and machinery, and cash advances. The Five Debentures and the amounts, totalling £23,491/10/-, are to be paid off out of the proceeds of the present issue. 3. The names and addresses of the persons bolding the above-mentioned Debenture* and Debenture Stock and the amounts respectively owing to them (and which are to be discharged out of the proceeds of the present issue) are as under:— follows: Subscribed Capital—--1,488,970 Ordinary Shares of £1 each fully paid ; 428,159 Ordinary Shares 30th JUNE 1936. j t paid 2,004,444 Shares £1,720,292 18 0 500,000 Shares 26,000 7% Cumulative Prof- £ s. erence Shares of £1 each, fully paid .. 26,000 0 102,128 7% Cumulative Preference Shares of £1 each. Amount paid thereon 28,164 1 4. (a) A. B Karlstad Mekaniska Verkstad of Sweden (b) Elof Hnnsson of Gotcburg-Swod-ui (cl John Thompson Wafer Tube Boilers Limited of England (d) Beiliss & Morconi Limited of England (e) Asea Electric Limited of Sweden The above parlies are previously referred ft, as “The London Group of Dehenlurc-Holders.” •OO Stg. 371,872 ulative Pr ference Shares of £1 each, unallotted (f) Asea Electric Limited of Sweden 2.500 Aust. (g) Boving & Company of Tendon . 10.001 ft „ £54,104 1 3 30th i Subscribed Capital—--1,650,253 Ordinary Shares of £1 each fully paid .. .. .. 1,650,253 0 273,476 Ordinary Shares £ 1 2,004,444 Shares £1,811,955 4 6 £23.401 ft „ 26,000 7% Cumulative Preference Shares of £1 paid .. 26,000 for goodwill No 123.300 7% Cumulative Preference Shares of £1 each Amount paid thereon 54.093 15 350,700 7% Cumulative Pre•ibin foi 30th Subscribed Capital—--1.829.404 Ordinary Shares of £1 each, fully paid 1,829,404 0 107,931 Ordinary Shares of £ 1 500.000 Shares JUNE, 1938. the right to pay brokerage hires allotted where applie person authorised to reoeiv 6. No amount has been paid intended to be paid to any 7. There are no material con 8. The auditors of the Comoar Th. beliaM of the nt has lieen paid * commission for procure subscripompany reservi** a mount of any dehen*en received from any ompany. the date hereof, or ia nfan (A us it paid 2,004,444 Shares £1,8.89.528 18 2 108,762 7% Cumulative Preference Shares of £1 each, fully paid .. ..108,762 [*uh!u eh.as of ; His of the hertson. Crane & Gibbons. Chartered ey. and for New Zealand records, •riia. New Zealand, applied directly or indirectly in th« 39,737 7% Cumula Preof £1 t paid 7% Cumulative Preference Shares of £1 each, unallotted. 19,107 6 2 £127,869 6 2 be able to supply the whole of the Dominion’s requirements. EXCELLENT WOOD SUPPLlES.—Appreciating the suitability of New Zealandgrown Pinus Insignia 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 33,000 acres of virgin country (freehold) and the establishment thereon of 50,000 acres of pulpwood forest at , ~U) OAO r l' l-i ic- n<Arl? txt nc, hr UlMit anrl th : exceed £20,000. PREFERENCE DIVIDEND in arrear to 30th June. 1938. Yours faithfully. ROBERTSON. CRANE & GIBBONS, Accountants (Aust.), The list nf application, will he c|„b..,l on I'Sih .luno. lilitit FILM OF rOMPWVS OPFKATIONS.-A film .lepi.iinr th. « l*.rSins: mill Pulp and I'npcr-Mnkina ii|*T.Hion« ia home >< n-.-n.d in Auckland. 'Vcllingfnn, ( hristchurch end Dunedin. Admission tickets are procurable from any member of the Stork Exchange. WE. th. und.r.iencd, l»n HEIIEHY PEItTIFY that Ih. «hov. mtv.r'imnMil ha. h..n duly approval hy Itcscduti.m nf ih. Heard nr Dim-lom nf Ih. Cnninany |«,,c h Board of Directors being In. managing body thereof) on lb. L'Oth day of U.y 1!)3». (Signed > THEODORE J MARKS by his authorised agent. G. S. CRIMP. Signed by the Chaim two other Directors presence of: the Company. 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 the Company a permanent supply of low cost wood sufficient to support an output of at least 150,000 tons of pulp per annum. VALUER’S REPORT ON PLANTATION.—The Prospectus reproduces copy of a valuation report prepared in 1939 by Professor H. Hugh Corbin, B.Sc., Ag. Edin., B.Sc. Lond.. 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 operation—l2,ooo tons—there should be a total margin of over £60,000, or over five times the sum required to meet the annual Debenture Interest, £II,OOO. GOODYVII-Xt. —No valuation for goodwill appears in the Balance-Sheet. SECURITY FOR ISSUE.—The Debenture Stock constitutes a fixed charge on the freehold lands comprising the Mill Site at Whakatane, together with all buildings, plant and machinery thereon, and also the Company’s valuable pulp wood forest at Pukahunui, of which 35.000 acres is owned by the Company exclusively. Also its shareholding in the subsidiary Company, Timberlands Woodpulp Extended Limited (owner of the 21,000-acre Matnhina Plantation). BROKERAGE.—A brokerage of 21 per cent, will be paid on the nominal amount of any Debentures allotted pursuant to applications bearing the stamp of any member of the Stock Exchanges of Australia and New Zealand. (Signed) Chair (Signed) C. O. GIBBS Director*. S. CRIMP, Dated this 2Gth day of May, 1930. (Signed) BALANCE SHEET OF COMPANY. Hereunder is a summarised statement of the assets and liabilities of the (.'ompany and its subsidiaries as shown by the Books at March 31at, 1939. The detailed Balance-Sheet, duly signed by the Company’s auditors, may be inspected at the Company’s Registered Office. ASSETS. LIABILITIES. Capital—Paid Up Reserve for Taxation and Forfeited Shares Reserve Unclaimed Dividends Sundry Creditors— Secured .. .. .. .. .. .. Unsecured .. .• «:« .. .. •• 2,045.208 1,000.972 Stocks of Raw Materials—at cost .. Commonwealth Loans and Investments. Sundry Debtors and Cash Balances .. .. .. .. .. Establishment and Bond Conversion Account .. .. M ’*