Widespread Portfolios announces share purchase plan
23 March 2010
NZX Market Announcement
Widespread PORTFOLIOS to OFFER Share Purchase Plan
The Board of Widespread Portfolios has resolved to offer a share purchase plan (Plan) to its shareholders.
The record date for the Plan is 5pm on Tuesday, 30 March 2010 and shareholders on the register at that time will receive a non-renounceable entitlement to $3,000 of Widespread Portfolios shares. The issue price for shares under the Plan is $0.15 per share.
Eligible shareholders will have the following options under the Plan:
Ø Subscribe for their entitlement of $3,000 (representing 20,000 shares at $0.15 per share);
Ø Subscribe for less than their Entitlement at the minimum subscription amount of $1,500 (representing 10,000 shares at $0.15 per share);
Ø Subscribe for their entitlement and also apply for up to $12,000 of further shares from any shortfall under the Plan. Shortfall shares are offered subject to their availability and at the same issue price of $0.15 per share; or
Ø Do nothing and the shares comprising an entitlement become shortfall shares.
A maximum of approximately 6.4 million shares are offered under the Plan and, if oversubscribed, entitlements may be scaled back. The Plan will close on Monday, 26 April 2010 (unless extended by the Board). Eligible shareholders will be sent the Plan documentation early next week.
Rationale for Plan
Widespread Portfolios holds approximately 22% of the shares of Widespread Energy Limited (WEN), a company listed on the NZAX market. In August 2007, Widespread Portfolios (with a 10% participating interest) and WEN (with a 90% participating interest) formed an unincorporated joint venture (Joint Venture) to apply for an offshore prospecting permit over an area on the central Chatham Rise, 600km east of Christchurch. Previous exploration undertaken on the central Chatham Rise in the 1970’s and 1980’s indicated significant potential for economic concentrations of rock phosphate, a core ingredient in fertiliser.
On 25 February 2010, the New Zealand Crown Minerals Office granted to the Joint Venture a prospecting permit covering an area of 4,726 km2 on the central Chatham Rise. Full details of this grant and its implications were announced to NZX on 25 February and shareholders are encouraged to review that announcement at www.nzx.com/markets/NZSX/WID . The prospecting permit gives the Joint Venture priority rights to apply for a mining license over the permit area and the Joint Venture now has a two year work programme that it is looking to undertake on an accelerated basis. The work programme will initially cover the digitisation and reinterpretation of historic exploration data for the permit area and culminate with a detailed feasibility study.
The new capital raised under this SPP will be used by Widespread Portfolios to:
Ø Fund its share of the Joint Venture to enable the Chatham Rise work programme to be undertaken on an accelerated basis; and
Ø Invest in WEN to recover dilution in its shareholding from recent placements and its current share purchase plan offer.
WEN is presently undertaking a share purchase plan and persons holding shares in both Widespread Portfolios and WEN are cautioned not to confuse these two offers.
For and on behalf of the Board
Widespread Portfolios Limited
Chris Castle
Managing Director
