2008 Capital Changes
From the capital raising carried out at the end of calendar year 2007, the following additional shares were authorised by the Board for issue in March 2008:
- Entitlement shares - 148,665
- Shortfall shares - 64,963
- Total issue - 213,628
In the letter to all shareholders dated 2 May 2008, the Chairman and the Managing Director advised that a significant business has just been acquired by AAFL that will increase the size of the Company's business by 25%, bringing expanded business opportunities and business efficiencies.
From 1 April 2008, the business of Neilson-IDE Pty Ltd, the Sydney based operations of Grupo Inca, one of the two major players in the world alpaca fibre and fashion market was folded into AAFL Australian operations. This business had been operating as an importer and distributor of Inca products, initially under the Alpaca 111 label, but lately under the Kuna label.
The AAFL plan is to centralise all Company distribution and administration in Melbourne, and to maintain a sales presence in Sydney. AAFL acquired the net assets of Neilson-IDE by the issue of new shares in AAFL at a price of 45 cents. Subject to shareholder approval in November 2008, it is planned that Neilson-IDE will hold approximately 28% of the increased capital of AAFL. Mr German Freyre, Managing Director of Grupo Inca and a recent speaker at the 2008 World Alpaca Congress in Sydney, was elected to the AAFL Board in June 2008 to fill a casual vacancy, and will come up for election by shareholders at the 2008 AGM.
Grupo Inca are keen to expand their business interests in Asia and particularly in China. AAFL's contacts and linkages into this market provide synergies for both parties following this initiative. The Board concluded that many positive consequences will be accrued for AAFL by it being directly linked with the largest and most experienced alpaca product designer and manufacturer in the world, Inca Alpaca.
