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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news