WEL Canesis verifies Wool Interiors deal

18 Aug '06

2 min read

Wool Equities Limited (WEL) previously announced on 29 June 2006 that its subsidiary Canesis Network Limited (Canesis) had entered into a conditional heads of agreement to sell its Wool Interiors division to Wool Research Organisation of New Zealand Inc (Wool Research).

Wool Equities confirms that Canesis has entered into a binding agreement to sell the Wool Interiors business to Wool Research, with an expected completion date of 31 August 2006.

On completion under this sale (and under related agreements to be entered into between Wool Equities, Wool Research and Canesis):

Canesis will sell its Wool Interiors division to Wool Research for $1.7 million plus any working capital adjustments on completion date.

Canesis will repay a shareholder loan owed to Wool Research of $700,000.

Wool Equities will purchase from Canesis its shareholding in Keratec Limited in consideration for repayment of a shareholder loan to the value of $1.32 million.

Richard Bentley, Chairman of Wool Equities said on completion of the transaction Wool Equities will directly own 95.4% of Keratec and control all of the voting shares in Keratec. This enables Wool Equities to continue its focus on its investments in Keratec and Orico Limited.

Wool Equities (WEL) is an investment company specialising in the wool, sheep and primary industry sectors.

Canesis can add value to the business through scientific and technical expertise in the wool, textiles and other fibre industries.

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