Wools of New Zealand calls lawsuit frivolous & vexatious

A key objective of Wools of New Zealand is to build the company, evolving within five years to be a fully commercial grower-owned sales and marketing business.  Wools of New Zealand has spent considerable time meeting with all sectors of the industry in New Zealand  and internationally building strong collaborative relationships  and is now pursing commercial  opportunities  with supply chain participants for mutual benefit.

The Directors are pleased with the cooperation and progress made to date. Wools of New Zealand is, for example, very supportive of the New Zealand scouring industry  which underpins the quality and integrity of our fibre  which supports the Company’s branded, market-pull  strategy.

Despite the Company's efforts to build strong industry connections, the Company was disappointed to learn that, on 23 November, The Formary Limited (a Wellington-based company) filed legal proceedings against UK company Camira Fabrics Limited (First Defendant) and Wools of New Zealand Limited (Second Defendant).

The directors of Wools of New Zealand consider that the legal proceedings are frivolous and vexatious, an abuse of court process and entirely without any foundation in either fact or law.  Legal advice received by Wools of New Zealand supports the Directors' view. Camira Fabrics has confirmed to Wools of New Zealand that it also believes that the proceedings are entirely without foundation.

The directors do not intend to allow these proceedings, which seem to have been filed with a view to disrupting the Wools of New Zealand Prospectus, to distract them from their goal of organising strong wool growers beyond the farm gate. Wools of New Zealand urge’s growers to seriously evaluate the Wools of New Zealand investment offer and make a considered decision aimed at underpinning your  wool returns and ensuring the long term viability of the sheep industry.

The Prospectus closes on 14 December 2012. Only growers who commit and invest will own the assets of Wools of New Zealand including the brands.