Press Release

The Federal Minister for Financial Services & Regulation, Joe Hockey, today welcomed plans to list wine securities on the NSX (Stock Exchange of Newcastle Limited). The opportunity to invest in wine class shares, which are backed by a physical case of wine, and their subsequent trading on NSX, is a world first. The wine class shares in the prospectus launched by Mr Hockey are redeemable preference shares in AWX Capital Limited. The Minister said the initiative was an example of innovation in the financial markets and provided a mechanism for the wine industry to raise capital in a unique way. “Innovation is crucial to the capital formation process in Australia, especially for small and medium-sized businesses,” the Minister said. “The listing of wine class shares is such an innovation and I welcome initiatives like this that might encourage listings and provide smaller operators with more opportunities to raise capital,” the Minister added. This first AWX prospectus, containing 20 separate IPOs, offers investors access to $A3.8 million of wine from producers such as Tyrrell’s Wine, Orlando Wyndham Group, Katnook Estate, Howard Park Wines, Tarrawarra Estate and Knappstein Lenswood Vineyards. Each redeemable preference share is attached to a case of wine and redemption periods are 18 or 24 months, during which the shares can be traded on the NSX or redeemed. After that period, the physical wine is delivered to shareholders. Wine class shares in the first prospectus range from $A156 to $A816, covering a range of quality red and white wines from a variety of Australian wine regions. According to Mr Stephen Thompson, founder and chief executive officer of the Australian Wine Exchange and AWX Capital, listing on the NSX would enable investors to build and trade a share portfolio of wine. Among examples from the first prospectus are Port Phillip Estate Chardonnay 2000 from the Mornington Peninsula at $264 a case, Orlando St Hugo Cabernet Sauvignon 1999 from Coonawarra at $156 for six bottles and Tyrrell’s Aged Hunter Semillon 1997 at $420 a case. According to Mr Steven Pritchard, chairman of the NSX, wine class shares would be a great boost to the NSX as well as fulfilling objectives of providing an alternative listing and trading environment. “The listing of alternative securities, such as the wine class shares, provides an example of the supplementary role the NSX can play in the trading of securities other than traditional equities. “As an alternative for corporate listings, the NSX is becoming the market of choice for small to medium and innovative enterprises looking to raise capital and transact on a market that is nurturing, efficient and has simple, user-friendly processes. “With AWX expecting to issue other prospectuses over the next few years, wine class shares would add to listings and trading activity on the NSX,” Mr Pritchard added. NSX provides a listing opportunity for companies, building societies, credit unions and investment syndicates whose size or corporate structure may prevent them from listing on the ASX. NSX listing requirements are a minimum market capitalisation of $500,000 and minimum shareholder numbers of 50, compared with the ASX requiring minimum market capitalisation of $10 million and 400 shareholders. NSX sees advantages of listing on NSX as being to provide liquidity for shareholders, access to capital, facilitation of employee share ownership plans and increased public profile. NSX was reopened on 21 March 2000 by the Honourable Joe Hockey, Minister for Financial Services and Regulation. NSX is a fully electronic exchange with all trading using software similar to that of the Australian Stock Exchange’s SEATS trading software.