The Waipara Hills Wine Estate Ltd issue of $1.3M convertible preference shares has been fully subscribed, the company reports.

After the company met over half the issue from its shareholders before Christmas, the remaining shares have been taken up during the past month by public investors.

Syd Bradley, company chair, said the response was heartening for Waipara Hills and will help it achieve critical mass as a leading producer and exporter of top quality New Zealand wines.

“We now look forward to the biggest and best harvest we have had to date from contract growers in Marlborough, Canterbury and Waipara,” he said, “and it is encouraging that our major export markets in the UK, USA and Australia are experiencing strong demand for Waipara Hills wines.”

In just three years Waipara Hills has won numerous accolades for its wines at national and international wine shows.

The convertible preference shares issued will convert to ordinary shares in March 2007 at the rate of 130 ordinary shares for 100 convertible preference shares. The company can extend the conversion date to March 2009, and if sothe conversion rate increases to 135 shares.

A gross dividend of 9.75% per annum is payable quarterly on the shares.

Mr Bradley said this return had proved attractive to investors, as the company has no term debt and strong earnings prospects from existing export markets and future export sales growth.

Subscribers for 2,500 or more shares also qualify for the company’s Wine Club and receive privileges when purchasing wine.