A2 Corporation of New Zealand (A2C) and Freedom Nutritional Products Limited (FNP) have formally agreed to convert their respective convertible note investments totalling AUD 4.5 million in the A2 Dairy Products Joint Venture (A2DPA) into ordinary shares.
A2DP exclusively manages the production and sale of a2 milk products in Australia and Japan.
The effect of the conversion will be for A2DPA to be owned 50/50 by both A2C and FNP effective from 1 May 2009.
The conversion reflects the significant growth achieved since the formation of the joint venture in 2007, contributing to A2DPA achieving profitability in the current financial year; a key milestone that has been achieved ahead of plan.
This profitable base provides a strong foundation for continued growth in the A2DP business through ongoing communication of the benefits of a2 milk; and product and distribution extensions.
For more information please contact:
David Mair, Executive Director, A2 Corporation, Ph +64 9 523 4795