A2 Corporation – Minimum Shareholding Level
Earlier this year A2 Corporation wrote to all shareholders to advise that the Board of Directors was considering setting a minimum shareholding level.
A2 Corporation appreciates that many of its small shareholders are loyal supporters of the Company and its vision, and also believes that it is beneficial to maintain a wide and diverse shareholding base. However, maintenance of A2 Corporation’s large share register presents a financial and administrative cost to the company. Accordingly, after careful consideration, the Board applied to the New Zealand Stock Exchange (NZX) requesting approval of a minimum shareholding level.
NZX announced today that permission had been granted for a minimum shareholding level of 2,000 shares, which is the level prescribed in Appendix 2 to the NZSX listing rules.
This minimum shareholding level of 2,000 shares affects approximately 186 shareholders, who account for less than 0.1% of the Company’s issued shares.
Notice of Purchase of Less than Minimum Holding
In accordance with Section 12.11 of A2 Corporation’s constitution, the Board of Directors hereby gives notice to shareholders that at the expiration of three months after this
notice, being 15 March 2009, the Board will exercise the power of sale of individual shareholdings less than the minimum shareholding (2,000 shares). For the avoidance of doubt, this will only apply to shareholdings of less than 2,000 shares on 15 March 2009.
What are the next steps?
If you currently hold 2,000 shares or more and intend to maintain this level on 15 March 2009, the notice given in this letter does not apply.
On 15 March 2009 A2 Corporation will arrange for the purchase of all shares from shareholders that hold parcels of less than 2,000 shares.
You have two options available to you if you currently hold less than 2,000 shares:
– Option 1 – Purchase additional shares in order to remain an A2 Corporation shareholder
If this is your chosen option please ensure that you purchase additional shares before 15 March 2009 to take your holding to at least 2,000 shares.
– Option 2 – Do nothing and receive payment for the sale of your share parcel of less than 2,000 shares
If you hold less than 2,000 shares on 15 March 2009, A2 Corporation will sell your shares through the NZAX (or in some other manner approved by NZX) and will send to you the proceeds after the deduction of reasonable sale expenses.
If you have any questions relating to this matter please contact;
Chief Executive Officer, A2 Corporation Ltd.
Phone 09 523 4795 or email – email@example.com
A2 Corporation Limited
A2 Corporation Limited
Level 5, 235 Broadway
Tel: +64 9 5233 129