ATM | NZ$10.950
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As at 2018-12-17 23:35:57
NZ$10.950
$+0.200 / +1.860%
A2M Share Price
As at 2018-12-17 17:46:55
AU$10.500
$+0.350 / +3.450%
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Rights Issue Announced - The a2 Milk Company

Market announcements

Rights Issue Announced

July 4, 2008

A2 Corporation (“A2C”) today announced a 3 for 4 renounceable rights issue of ordinary shares to all shareholders, at an offer price of 10 cents per share, which will raise net proceeds of approximately $10.8 million.

Anthony Lawler, CEO of A2C is pleased to inform shareholders that the rights issue will be fully underwritten by Mountain Road Investments Limited (MRI), the majority shareholder of A2C. Lawler stated “The confidence shown by MRI by fully underwriting the rights issue is welcomed by A2C’s management and we believe it is a reflection of the positive progress made by A2C in the past 12 months and the exciting plans for the next 12 months.” This underwriting is subject to shareholders’ approval at a Special Meeting in Auckland on 18th July 2008.

The net proceeds of the offer will be used to reduce A2C’s bank debt and provide for working capital. Waivers have been granted by NZX and The Takeovers Panel to permit this sub-underwriting.
Shareholders who do not wish to participate in the issue can sell their rights, which will be separately tradable on the NZAX. In addition, the issue will incorporate an over-subscriptions facility. This will allow shareholders to submit applications for shares in excess of their rights entitlements, which will be available in the event that there is a shortfall in applications. Any shares not placed by this facility will be allotted to the underwriters.

Lawler adds that ‘the oversubscription facility is a great opportunity for our shareholders to potentially take up more than their pro-rata rights issue.”

The record date for rights entitlements is 18 July 2008. Rights trading and the offer period are anticipated to commence on 28 July 2008, and rights trading to cease on 20 August 2008. The offer is anticipated to close on 22 August 2008.

Details for the Special Meeting on 18th July 2008 in Auckland will be sent directly to shareholders.

 

ENDS

 

For more information please contact:

Anthony Lawler, CEO A2 Corporation, Ph +64 9 5233 129

Julien Leys, JML Communications, Mobile +64 21 655 598

 

About A2 Corporation

A2 Corporation Ltd owns and licenses intellectual property that enables the identification of cattle for the production and subsequent marketing of a2 milk™. a2 milk™ is naturally produced to contain maximum amounts of a milk protein variant that is associated by a number of studies with potential benefits in some individuals. A2 Corporation Ltd receives royalty income from sales of a2 milk™ products and shares in the profits or losses of associates and subsidiaries formed for those purposes.

 

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