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Summary of

Securities Act (Colville Equities Limited) Exemption Notice 2004

2004/102

Gazetted on 29 April 2004
Expires on 31 December 2004

Effects of the exemption
Colville Equities is not required to include a prospective statement of cash flows in the prospectus for its share offer.

Background
Colville Equities intends to become a listed investment company that will invest in entities listed on NZX, and to a lesser extent in unlisted New Zealand companies, and in large ASX listed entities with business activities in New Zealand. Milford Asset Management Limited will manage and promote the investments.

The exemption
Colville Equities is exempted from clause 10(1)(c) of the First Schedule of the Securities Regulations 1983.

Conditions
The exemption is subject to the condition that the shares are listed, or approved for listing, by NZX, or Colville Equities has applied to NZX for listing and has complied with NZX requirements for the listing application, at the time the shares are offered.

A further condition is that the prospectus must contain a statement of Colville's reasons for not providing the prospective statement of cash flows, and an acknowledgment that the investment is high risk.

Reasons
Colville Equities is an investment company, whose business is closer to that of a unit trust investing in market instruments than a traditional company. Because the company has not yet determined the precise make-up of its investment portfolio, prospective financial information would be highly speculative, and may be of little relevance to investors.

Under the conditions of the exemption, potential investors will be informed that prospective financial information is not included and why. Their attention will also be drawn to the high risk nature of the investment.

The exemption is consistent with previous exemptions in similar situations.