25 November 2017

  1. The directors have agreed to pay all Silverwood Unit Holders a distribution of $500 per unit. This also automatically triggers the 2006 deferred fee agreement of 11%. This means Silverwood pays its unit holders 1048 x $500 = $524,000 with the related expense of $57,640. Payments to NZ bank accounts have been made this week, non NZ bank accounts will receive before 12 December 2017.
  1. 524 Silverwood units, being 50% of the 1,048 SLP units issued, is held by Whitby Corporation Ltd (WCL), before 1990 the owners of all Silverwood land and forests. The shareholders of WCL have requested WCL pays WCL shareholders their equity proportion in cash and part of their 524 Silverwood units. SLP cannot issue fractions of one unit to meet the WCL request. Directors have therefore agreed to issue a one thousand (1,000) for one (1) unit split. This has two advantages:
  1. It draws in the 147 WCL shareholders into Silverwood owning one or more Silverwood units adding to the same 524 units WCL currently holds, but, like your units, now multiplied by 1000. It saves WCL shareholders costs of filings, accountants, auditors, directors fees, etc.
  2. Many SLP unit holders own four (4) SLP units, which after 1 December has become 4,000 SLP units. No Dollar changes occur in the balance sheet, therefore your original unit value of the SLP equity becomes 1/1000th of the same equity, but you have 1000 time your units so the Total $ stays the same. In time of you needing cash you can now offer for sale a much more suitable parcel then you could before 1 December 2017. We expect therefore an enhanced trade in Silverwood units because the unit value is 1/1000th  per unit. The unit numbers have been multiplied by 1000 and there are now 147 more SLP unit holders making it about 247 unit holders compared to 100 currently.

Please note the following:

  1. Some years ago SLP purchased WCL shares from a distressed WCL shareholder as can be seen on SLP Balance Sheets. These now lapse, reducing the total of SLP units of 1,048,000 units from 1 December 2017 to 1,013,851 units. This increases each unit value a little and reduces the Balance Sheet equity a little,  however your Total $ Value invested remains unchanged.
  2. Two WCL shareholders have lost contact with WCL, this is currently being advertised and the WCL liquidator will ensure their interests are addressed.
  3. Tony Loveday and Peter Tiedemann have been directors of WCL since inception and 2000 respectively. Tony is a trustee for 2 SLP units and director for WCL’s 524 units, in total 526 or 50.19%, with his WCL interest added, but WCL gone, this now becomes 53,150 units or 5.24%. PeterT is a trustee for 7,000 (0.67% of total) SLP units and, with WCL part added and after 1000 for 1 this becomes 18,571 SLP units or 1.83% of the 1,013,851 units issued.
  4. Peter Bould and Malcolm Johnson have no financial interest in WCL. PeterB is a trustee for 10,000 units as at 1 December and controls a further 116,000 SLP units being a director of two SLP unit holding companies (a total of 12.42%) and Malcolm, is a trustee and beneficiary for 6,000 SLP units (0.59%).

In summary the above means a distribution has been made this week of $500 per unit and, after this distribution, there will be a unit split of 1000 per 1 SLP unit which does not change anything re your $ holdings in SLP it merely changes the number of units you hold.

Kindly address any queries you may have by simply answering this email with your question(s) and I will come back to you. Please do not phone me as I am unavailable until 9 December 2017.

As December and the festive season approaches Silverwood directors wish you all a Merry Christmas and a Happy New Year.

Kind Regards,

Peter Tiedemann