The Board of A2 Corporation Limited (NZAX: ATM) has today taken a further step towards creating a global dairy products business with the alignment of senior management incentives to the medium term goals of the Company.
Three senior executives, reporting to the Managing Director, will be offered partly paid ordinary shares.
Chairman Cliff Cook said: “The Company is now at an important stage and we wish to retain and incentivise executives proven to be highly competent in building our position in Australia and who have demonstrated the skill sets to take the business into international markets.”
“This follows the change in strategy implemented by the Board which has refocused the business to become a branded, premium priced, fast moving consumers goods and ingredients business rather than simply an owner of intellectual property. This has been effected by fully acquiring the former joint venture companies in Australia and the USA and the subsequent appointment of a Managing Director with extensive experience in the global dairy market. This offer of partly paid shares to management completes the process of strategic change and alignment.”
In February 2011, the Company reported a maiden unaudited Group Profit after Tax for the 6 month period ended 31 December 2010 of $893,517.
The three executives to be offered shares are the Chief Executive Officer – Australia & New Zealand, General Manager – International Operations and Chief Financial Officer.
In aggregate, 9.5 million partly paid shares will be issued, with an issue price of NZ$0.15, with that issue price partly paid by each executive as to NZ$0.0015 per share. The remainder of the issue price of the shares can be paid at any time within the next 5 years. The issue price is at a premium to the volume weighted average traded price of ATM shares for the last 20 days of 13.2 cents a share. The shares are subject to transfer restrictions, which are usual for employee incentive arrangements.
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