Thursday 14th August 2008
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The company is offering NZ$11.3 million of non-renounceable rights, underwritten by A2 Corp.'s largest shareholder, Mountain Road Investments. There is unsatisfied demand from sub-underwriters and the company is considering a further capital raising, it said in a statement today.
The rights offer closes August 22 and A2 Corp. won't advance plans to raise more capital until then. Any further offer would be at or above the 10 cents-apiece price for the rights, it said. The shares rose 5.3% to 10 cents today, having sunk 57% this year.
Mountain Road, owned by A2 Corp. chairman Cliff Cook and director Greg Hinton, plans to subscribe for its full 54.3% entitlement.
"As a result of potential investor interest, the company is considering bringing forward the proposed new capital raising," it said.
Separately, the company said sales of Lotte a2 Milk began through South Korea's Lotte Department Stores on August one after A2 Corp. signed a license agreement last October. The product is to be distributed to other store chains over the next two months, it said.
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