New Pure NZ chairman aims to turn firm around

The new chairman of Pure NZ said today he hoped to get the stock exchange suspension on the company's stocks lifted and carry out a recapitalisation.

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

The board was replaced this month by Ian Smith as the new chairman and David Wallace and Lisle McErlane as independent directors.

Mr Smith said in a letter to shareholders today the new board's initial objective was to hold an annual general meeting, to sort out the physical accounting and company records, and gauge the value of the remaining assets.

He then hoped to work through the company's regulatory problems and resume trading on the stock exchange, after which a recapitalisation would follow.

In the meantime, Probus Holdings Ltd, 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 AGM will be in Wellington next Monday .

Mr Smith said Pure NZ has not fared well for years.

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

Pure NZ last year restructured from a neutraceutical operation to merchant banker.

- NZPA