a2 Corporation Limited (NZAX:ATM) is pleased to announce that it has received notice from Freedom Foods Group Limited (previously Freedom Nutritional Products Limited) that Freedom Foods Group wishes to exercise its option to subscribe for a further 18,761,657 fully paid ordinary shares in a2 Corporation.
Under the terms of its original investment in a2 Corporation, Freedom Foods Group had an option to acquire additional fully paid ordinary shares in a2 Corporation at AUD0.11 per share to increase its total holding of fully paid ordinary shares to 27.5% of the total number of fully paid ordinary shares. a2 Corporation received notice that Freedom Foods Group wised to exercise its option on 20 July 2011.
The additional 18,761,657 fully paid ordinary shares will be issued to Freedom Foods Group on or about 3 August 2011. At the prescribed exchange rate, the consideration for the new shares will be NZD2,599,094 (being NZD0.1364 per share).
Following the issue of shares, Freedom Foods Group’s total shareholding in a2 Corporation, including partly paid ordinary shares on issue, will be 26.4%.
a2 Corporation is delighted with the continued support and involvement in the company of one of its cornerstone shareholders.