Normiska offering up ownership in company

When Normiska Corp.’s management meets with the public tomorrow night at La Place Rendez-Vous, chances are they won’t be focusing on the earthy benefits of peat products.
This time, talk will centre around Normiska’s public invitation to get a “piece of the peat” through the purchase of shares in the Fort Frances-based horticultural company.
Among those slated to attend the 7 p.m. meeting is Normiska president and CEO David Graham of Toronto, who is hoping to see a healthy turnout of individuals and groups interested in investing in the peat plant now under construction on McIrvine Road.
“This [meeting] will relate more directly to the issue of the public offering and will be more to promote stock [in the company],” Graham reiterated yesterday from his Toronto office.
Shares in Normiska are being offered until July 17 through underwriter Jones, Gable & Company, which recently purchased all 1.2 million share units for resale to the public.
“Shares are being sold in units of a dollar. There is no minimum [sale] but to be practical, we don’t recommend purchase of under 1,000 [units],” said Donald Ross, chairman of the Toronto-based firm.
Graham added the offering of shares in Normiska includes one share and one half warrant, which entitles the buyer the option to purchase an additional share at the prescribed price of $1.25 by January, 2000.
While Ross indicated shareholders in Normiska would not necessarily have to wait long to see a return on their initial investment, he advised holding on to the shares for a year before expecting to see some financial action.
“You obviously need to get [the operation] up and running first [and] once that initial shipment of [peat product] is out, stocks should react to that,” he predicted.
Ross said although buying interest in Normiska has been reasonably widespread since the company went public, the number of stocks sold has been slightly less than expected so far–a glitch he attributed to the strike by Communications, Energy and Papermakers union locals at the Abitibi-Consolidated mill here.
Normiska Corp. has a deal with Abitibi-Consolidated for delivery of bark from the mill to the plant site. And while Graham is aware the strike is making people cautious stock buyers in his company, he intends to shed some positive light on that issue tomorrow night.
“The meeting [is also] to assure people that we are not totally reliant on the bark supply from the mill,” he remarked.
Meanwhile, Graham estimated that with the peat plant’s foundation completed, processing equipment in place, and the building about to be erected, operations should start at the site in late July or early August.
Normiska stock will be listed on the Toronto Stock Exchange “CDN unlisted” market in late July.