Dear Shareholder
As much as we had determined that we would have a shareholders newsletter issued before Christmas, circumstances did not permit. The following summary of the company activities hopefully will give an idea as to what is now being addressed.
Carbon Credits
Arinsal has been successfully negotiating the establishment of Carbon Credit assets for the company owned trees, that establish a tangible value within the company balance sheet.
The progress of the Carbon Credit potential for the tree-growers has been slower than anticipated due to the difficulties in locating precisely where the individual growers trees are. Assessment is ongoing and at this stage there is little likelihood that the trees located on the Moora properties including that property known as Browns Block have any commercial value at all and definitely have NO carbon credit value. At the present time the focus is directed to those trees located on the Gingin property and these trees have been assessed as having some potential to accumulate carbon credits in the future.
Our view is that these trees will need to strictly managed for a period in excess of 15 years to achieve commercial returns.
Moora property purchase
There has been considerable conjecture as to the events surrounding the purchase of the Moora property in Agerton Road. Arinsal was advised to withdraw from the sale on legal grounds and has signed a memorandum with the vendor that precludes either party commenting on the commercial nature of the transaction. It is safe to say that Arinsal was unhappy with the situation of not being able to proceed. Deposit monies paid by Arinsal have been returned in full.
WATGA has a caveat over the Moora property and Arinsal, as a grower like ALL of you, will be requesting the executive officer of WATGA to pursue the non-compliance of the original owners to abiding by the terms of the caveat.
Arinsal would like ALL WATGA members to request the executive officer of WATGA to support our action.
Aquaculture
Arinsal has been negotiating a share of a public company Global Aquaculture Ltd involved in aquaculture (or fish farming). Shareholders who have fully paid their shares as at 21 March 2006, will be participating in a free carried distribution of shares in this company. Fully serviced factory premises are being acquired in the southwest of Western Australia just south of Bunbury, and the first harvest of fish is expected in early 2007.
Further details of this enterprise will be the subject of a future newsletter.
General
In this day of electronic marvels, it can be more cost effective for communication to be made through the e-mails. Please advise your e-mail address for the company records. The company will be corresponding as much as possible through this medium in the future.
In response to a number of queries regarding listing, it has been determined that this should be deferred until the business being established for the company creates a value that makes the listing feasible. It would be premature and expensive to list without a trading record and a tangible value within the balance sheet. It is still a high priority to make the listing, with the timing to be determined.
A reminder that the call on shares is now overdue. Letters calculating the outstanding amounts is being processed and will be posted in the next few days. It is essential that all financial commitments are finalized in order that the work outlined in this letter can proceed for the future prosperity of the company and all shareholders.
Work has been undertaken, and is almost completed, for an electronic shareholders register. When completed in the next week or two, all changes of address, access to shareholders records etc will be more time and cost efficient. Please check your details when you receive any correspondence from this office, and advise of any needed alterations, preferably by e-mail.
Contact e-mail info@carbonfarms.net
Shareholders patience on the progress of the company is very much appreciated. Telephone support by many of you is very encouraging. There are only two of us working to achieve all we have committed to the company, and we assure you that all queries and administrative work is being addressed.
Dear Investor
Since the 28 June this year when the offer for sale of the trees and share transfer was made, much work has been undertaken.
In order to secure the treegrowers leases, Arinsal has moved to purchase the Moora landholding. The Arinsal has made a takeover offer for Rural Equities Limited, the company owning the land.
The takeover of Rural Equities Limited will be finalized on 18 November 2005 followed by that company AGM on the 25th.
Cleanup of fire hazards on the properties is being addressed for the coming summer and intensive management of the trees will be given priority to ensure their health is not further compromised.
With the level of the new and ongoing commitment, there is the requirement for the second installment of 37.5cents per share to be made from the original acceptance of the share offer.
It is recognized that some persons may have difficulty in meeting this payment, mainly due to the absorption of any taxation refund into the existing taxation debt. Should there be any difficulty in meeting the second (and final) payment, the company would be happy to accept payments in three, monthly instalments at 12.5 cents per share. If this method of payment is more convenient, please forward the first payment together with acceptance of this arrangement by 30 November.