Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


A2 mulls capital structure in face of growth opportunities

A2 Corp mulls capital structure in face of growth opportunities; trading halt lifted

Nov. 28 (BusinessDesk) - A2 Corp, which markets milk products with a protein variant claimed to have health benefits, indicated its capital structure is under review as the company considers growth opportunities.

The shares had been halted from trading pending a statement after a media report that it was seeking to raise as much as $200 million.

“Any review of the company and its balance sheet would clearly indicate that the sums recently speculated are significantly in excess of what the company or the market can or would contemplate,” managing director Geoffrey Babidge said in a statement today.

A2 “continues to assess the company’s optimal capital structure in light of its growth opportunities, including new opportunities that may emerge,” he said.

The shares climbed 1.5 percent to 68 cents when they resumed trading on the NZX, valuing the company at $411 million. The stock has more than doubled in the past 12 months.

In the year ended June 30, A2 raised a total of $7.7 million in equity capital, including $5.18 million in March in a share placement to AMP Capital Investors (New Zealand). As at June 30 it had cash on hand of $6.6 million while holding to a strategy of carrying “little or no net debt whilst in a rapid expansion phase.”

Last month, in announcing the results of a strategic review, the company confirmed it would continue to be “capital light,” relying on partnerships to drive its growth into new dairy markets and categories.

The statement today reiterated last week’s announcement that the company is in talks with the NZX about shifting its listing to the main board from the NZAX, a market for smaller companies and start-ups.

"A move to the NZX main board may provide greater liquidity and increase access to capital," Babidge said last week.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news