Thursday 13th September 2007
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Securities legislation required that the offer meet its minimum subscription level within four months of the offer opening date. (The AGRI Fund offer opened on 9 May).
As a result, the AGRI Fund Board of Directors resolved on 10 September to withdraw the prospectus and return applicants' money, with interest.
AGRI Fund chairman, Peter Jackson, says it is disappointing to close the offer having fallen just short of the minimum level.
"We were pleased with the institutional support we were able to further gain in the past month, and believe we could have secured that interest if we were able to extend the offer."
However, Jackson says recent changes in the economic and financial environment had impacted on AGRI Fund's ability to attract investors to the Fund in sufficient time.
"Recent activity in the financial markets, including the failure of several finance companies and instability in international and domestic share markets contributed to today's result."
Jackson says demand for New Zealand's dairy products and agricultural commodities will continue to increase in the medium to long term.
"Investors that are able to access the agricultural sector in the next three to five years will be rewarded," he says.
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