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Friday 4th July 2008 |
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The 3-for-4 renounceable issue at 10 cents a share is fully underwritten by Mountain Road Investments, the company's major shareholder, it said in a statement. Shareholders will vote on the plan on July 18.
The shares were unchanged at 10 cents today, having dropped from 22 cents at the start of the year.
Investors who don't want to take up the offer can sell their rights, which will trade separately on the NZAX market. The issue will have an over-subscription facility, allowing to take up more than their pro-rata allowance, it said.
The company's net loss widened to NZ$6.3 million last year from NZ$5.1 million. Revenue tumbled 67% after A2 ended trading at its Australian subsidiary and began trading to a 50%-owned joint venture.
A2 Corp was started in 2000 to commercialise milk with high levels of A2 beta casein protein. A number of studies associate with potential benefits in some individuals, according to the company's website.
The company entered into business and licensing partnerships to bring A2 milk to the market in New Zealand, Australia, Korea and the US.
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