December 6, 2012

A2 to invest for improvement of global sales

Alternative milk firm, A2 Corporation, will invest US$20 million to improve its global sales plan.

Some 180 million shares will be available for investors in A2 at US$050 each.

The capital raising will involve the issue of 40 million shares while the three major shareholders are selling down up to a combined 140 million shares.

The sell-down by the three will provide greater liquidity in trading of the shares and is part of the company's application to shift to the main NZX board.

It may achieve that by February next year, it said.

A2 markets milk containing only the A2 type of beta-casein while standard milk contains the A1 type. Research has been inconclusive so far on the health benefits of A2 milk, but many consumers believe in its qualities.

A2 has shifted its promotional efforts over the years from the scientific debate to promoting its products to people who have digestive problems with standard milk and placing emphasis on the consumer benefits.

The new capital will be used to establish new markets and speed up sales and marketing in markets where the A2 milk products are already sold. These include the UK, China, and Australia.