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

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news