Capital Raising
A2 Corporation Limited (NZAX:ATM) (A2C, the Company) advises it has agreed today to make a share placement of 14 million shares at a price of 37 cents per share to AMP Capital Investors (New Zealand) Limited (AMP Capital) to raise an amount of new equity of $5.180 million. Allotment of the shares is expected to complete later today.
A2C is in a rapid expansion phase and the Board has maintained a prudent view of having little or no net debt. Whilst the Companys activities are capital efficient with the Australian business operationally self funding and the joint venture in the UK and Ireland requiring an initial equity commitment of only 2 million, the Board determined the circumstances were appropriate to undertake a modest capital raising at this time to provide flexibility for potential growth initiatives.
AMP Capital has assisted the Company by facilitating the sale of a block of A2C shares to a number of institutions in New Zealand on terms identical to the placement by the Company to AMP Capital. The AMP Capital shareholding will therefore remain unchanged following the placement. This process has enabled the Company to broaden its institutional shareholder base on satisfactory terms and at minimal cost and we thank AMP Capital for its assistance.
For further information contact:
Geoffrey Babidge Managing Director A2 Corporation Limited +61 2 96977008
Cliff Cook Chairman A2 Corporation Limited
