At a special meeting held in Auckland today AQL Holdings Limited (AQL) shareholders
approved the company’s acquisition of Organic Interceptor Products Limited (OIP).
AQL will as a result change its direction to become a producer of organic products.
Following settlement of the transaction all current AQL directors will resign
and AQL will change its name to Certified Organics Limited.
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AQL is acquiring the OIP shares for NZ$5,150,000 in exchange for the issue
of 1,950 million shares to the vendors at 0.25 cents per share, and the payment
of $275,000 in cash. A condition of settlement is that AQL has cash reserves
of not less than $2 million. In addition to shareholders approving the acquisition
of OIP, shareholders also approved the issuing of up to 400 million ordinary
shares by private placement at an issue price of 1.1 cents. Funds raised from
the issuing of these shares will allow AQL to satisfy the condition relating
to cash reserves. It is anticipated sufficient shares will be issued within
14 days to allow final settlement of the acquisition OIP to be completed.
At the special meeting shareholders also approved the issue of up to 40 million
executive options. These options will vest over three years and entitle the
holder to subscribe for shares at 2 cents per share.
The new company will produce a range of top quality products which meet international
organic certification requirements for agriculture, home and industry. These
certified organic products represent a safe alternative to chemical synthetic
products.
OIP is the Thames-based developer and owner of what is believed to be the world’s
first certified organic weed controller. The company was originally established
by brothers Rodney and Stuart Innes to carry out the research and development
needed to secure patents for weed control products.
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By GlobalDataOIP has already had significant overseas interest in its products. In addition
to the weed controller they include an organic weed control mat; organic cleaners;
and a developing range of human hygiene products, including organic shampoo,
which have recently received Certified Organic status from AgriQuality CERTENZ.
The CEO-designate for Certified Organics is Dr Earl Stevens, a biochemist by
training, who has spent the last 14 years in marketing, corporate development
and general management.
"Now that we’ve got shareholder approval, we’re able to move forward immediately
following settlement with our plans to increase grow the business, make key
management appointments and begin to take advantage of the ever-increasing global
demand for organic products," he says.
"We’ve already had advanced discussions with three distributors in New
Zealand, two in Australia, and others in South Africa and the Netherlands,"
says Dr Stevens. "We are planning to introduce a new range of Certified
Organic home and garden products in New Zealand within the next couple of months."
