Foley Family Wines is biting the bullet early and moving from NZX’s junior board to its main board from Dec. 3.
NZX announced last month that it would move to a single equities board from July 1 next year, eliminating both the Alternative Market and its unsuccessful NXT board.
Foley says it will also change its name to Foley Wines and its stock ticker from FFW to FWL as part of the move.
The change will mean the company becomes subject to the main board listing rules which impose enhanced governance requirements, including a requirement to have at least two independent directors.
Foley has already appointed former Kiwibank chief executive Paul Brock as its first independent director and is looking for a second.
It says shareholder approval of the new constitution required for the migration will be sought at its annual shareholders’ meeting on Nov. 21.
The main board listing will also impose more restrictions on the types of transactions the company can make without shareholder approval – Foley is in the process of taking over Mt Difficulty Wines for $52 million and has committed to expanding that company’s cellar door and restaurant operations.
“Foley does not consider that any material negative effect to its existing shareholders will arise due to the migration,” the company says.
The firm’s shares last traded at $1.35 and have fallen about 10 percent this year.