Exchange plea to allow Pure search for right path

The chairman of Pure NZ hopes to get a stock exchange suspension lifted so he can carry out a recapitalisation.

Ian Smith told shareholders in a letter yesterday that the board's initial objectives were to hold an annual meeting, sort out the physical accounting and company records, and gauge the value of assets.

The company was suspended from the stock exchange last October and, in February, the exchange said the suspension would last indefinitely after the company failed to comply with reporting requirements.

The board was replaced this month, with Smith taking over as chairman and David Wallace and Lisle McErlane coming in as independent directors. Smith also said he hoped to work through the company's regulatory problems and resume trading on the stock exchange, then a recapitalisation would follow.

In the meantime, Probus Holdings, a new 19.9 per cent shareholder, has provided the company with an interest-free advance, which would be repaid primarily from the recapitalisation.

The annual meeting will be in Wellington next Monday .

Smith said Pure NZ had not fared well for years.

"It appears to have ventured down a number of paths which have not brought a positive outcome for shareholders."

- NZPA