By LIAM DANN
High-tech milk company A2 Corporation has outlined its plans to list on the NZAX.
The company will hold a special meeting on April 14 to seek shareholder approval for the adoption of a new NZAX compliant constitution.
Chairman Jim Guthrie said the reforming of the constitution marked the final step
in a re-organisation of company structure and management that was needed after the deaths of founding directors Howard Paterson and Corran McLachlan last year.
The company was now well placed to realise the visions of these two men, he said. The NZAX listing would increase liquidity and enhance A2's profile within the investment community.
Once listed, A2 Corporation intends to raise a further $3 million by way of a one-for-two pro-rata renounceable rights issue to its existing shareholders.
Guthrie said the company had also arranged for the placement of 5 million shares at 10c a share to WF Asian Smaller Companies Fund, an institutional investor based in Hong Kong.
Shareholder approval would be sought for this placement.
These funds, coupled with streams of revenue obtained from United States and Australian licensing agreements would allow the company to pursue licensing and business opportunities in other European and Asian markets, he said.
The holder of the company's Class A shares, Machin Investments, has agreed to relinquish its entrenched rights so that all shares in the company will rank equally in all respects.
In return for giving up these rights and the transfer of the ownership of certain intellectual property rights to A2 Corporation, the company has agreed to issue a parcel of shares to Machin.
