Sharechat Logo

A2 Corp to raise $10.8m in rights issue, repay debt

Friday 4th July 2008

Text too small?
A2 Corp, the company that owns and licenses techniques to identify milk with a protein variant claimed to have health benefits, plans to raise NZ$10.8 million in an offer of stock to existing shareholders.

The 3-for-4 renounceable issue at 10 cents a share is fully underwritten by Mountain Road Investments, the company's major shareholder, it said in a statement. Shareholders will vote on the plan on July 18.

The shares were unchanged at 10 cents today, having dropped from 22 cents at the start of the year.

Investors who don't want to take up the offer can sell their rights, which will trade separately on the NZAX market. The issue will have an over-subscription facility, allowing to take up more than their pro-rata allowance, it said.

The company's net loss widened to NZ$6.3 million last year from NZ$5.1 million. Revenue tumbled 67% after A2 ended trading at its Australian subsidiary and began trading to a 50%-owned joint venture.

A2 Corp was started in 2000 to commercialise milk with high levels of A2 beta casein protein. A number of studies associate with potential benefits in some individuals, according to the company's website.

The company entered into business and licensing partnerships to bring A2 milk to the market in New Zealand, Australia, Korea and the US.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

A2 Corp's Babidge, Mair take advantage of soaring price to sell 6M shares
A2 shares touch record-high as investors buy into growth story
A2 FY profit slips on cost of setting up UK joint venture, sales jump 51 percent as Australian shines
A2 first-half profit dented by UK joint venture, affirms annual earnings target of $11.2M
A2 to raise $20M in placement, big shareholders sell down
A2 Corp mulls capital structure in face of growth opportunities
A2 Corp, in talks to move to main board, halts shares pending statement
A2 in talks with NZX about shifting to main board
A2 Corp to take control of NZ marketing; enter North America, Europe
A2 Corp talks up Chinese infant formula market potential