Barrhill Chertsey Irrigation Limited

Capital RaiSing

Our November 2008 short form prospectus outlined to potential shareholders how funds raised would be used to complete commercial arrangements and final feasibility studies. Those shareholders who commited at that stage have the first right of refusal for water when the long form prospectus is released should the project proceed.

Expressions of interest were sought for 8 cumecs of water on offer in stage one of the scheme.
 Expressions are sought from farmers within the highlighted area shown on this map.

The minimum level of 12,000 ha was exceeded on the 17 November 2008 closing date with a small number of shares still available for take up. The short form prospectus was extended to 19 December 2008 but then closed 25 November due to over subscription.

Because shares were over subscribed the board made allocations to existing shareholders as a priority, declined a group of applicants in the Dorie/Pendarves area, and reduced the shares issued to the remaining applicants.

A further prospectus was then prepared for those in the Dorie/Pendarves area who were declined shares in the November 2008 issue. The "Acton Prospectus" was specifically for those who can be serviced from the Acton stock water race and closed on 20th February 2009 attracting interest in 1.6 cumecs of water.

BCI has since put a mechanism in place to trade ordinary shares which have a right to further invest in a water supply. In April 2009 the final feasibility study was completed for the main scheme.

A shareholders meeting on 27 April 2009 approved a new constitution for the company and major transactions required for scheme construction.

The capital raising for the scheme development commenced with the release of a prospectus on 3 June 2009. This prospectus remained open for a month and was subsequently extended for a further month raising close to $20m but short of the minimum subscription level of $33m.

BCI then revised the development proposal to reflect the lower uptake due to poor economic conditions. The major change in proposed infrastructure related to the removal of the primary canal and proposed gallery intake and pumping to be undertaken by Trustpower. Over a four month period BCI developed arrangements with its partners including a joint venture arrangement with Electricity Ashburton Limited to construct the distribution infrastructure.

A further prospectus was released on 4 December 2009 to raise capital for the revised proposal and met the minimum level of subscription on 18 December 2009. The scheme then met all conditions precedent to the various commercial arrangements and the contractors were engaged.