Coles is playing the music?
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Coles is playing the music?
Fo those who may be Interested I received a reply today from Geoff Babidge CEO, this is what he wrote:.
Thank you for your enquiry.
A2C has grown substantially, with a c.50% increase in revenues and more than 180% appreciation in share price in the last twelve months.
Following the announcement of the outcomes the strategic review, the launch of a2(tm) brand fresh milk in the UK and the signing of the infant formula agreement with China State Farm in China, your Board determined it was the appropriate time to position the Company for its next phase of growth by changing the Company's listing to the NZX Main Board.
As part of the change in listing, three of the Company's largest shareholders resolved to sell down a percentage of their holdings (totalling 140 million shares), which will increase share liquidity.
This does not represent any dilution to existing shareholders as no new shares have been issued.
The Company's issuance of 40 million new shares (representing c.7% of the total shares on issue) was undertaken to allow the Company to dedicate additional resources to accelerate growth.
Given the size and nature of the equity raising and need for new investors to be added to the Company's share register, an offer made only available to eligible investors (primarily being large institutions) was deemed most appropriate in the circumstances to allow the Company to achieve its objective of increasing share liquidity for the benefit of all shareholders.
We are grateful for your past and continuing support and look forward to accelerating the Company's next phase of growth, which we expect will benefit all shareholders.
Sincerely,
Geoffrey Babidge
Managing Director & CEO
Yep,same reply as me.
As part of the change in listing, three of the Company's largest shareholders resolved to sell down a percentage of their holdings (totalling 140 million shares), which will increase share liquidity.
Sold their shares to increase liquidity? Very altruistic of them,
http://www.stuff.co.nz/the-press/new...-but-not-in-NZ
What you have just written is indicative to me of the unfortunate underlying psychic preference of New Zealanders when dealing with most issues - reactive rather than preventive, ambulance at the bottom of the cliff rather than fence at the top of the cliff.
Examples? Pike River blows up and now, the government and miners are scrambling to prevent future explosions. Finance companies meltdown and the government then introduces regulations. Too little, too late and extremely messy and expensive to deal with the fallout, after the fact. Reserve Bank NZ typically cuts interest rates only after NZ is in recession, not before. Raises interest rates only after an asset bubble is inflating close to explosion.
It is different overseas - they try to deal preventively. The case for consuming A2M is logically compelling - why take the risk of consuming A1 milk when you do not need to?
That is why A2 milk has taken off in Australia and now, in UK.
And this will be particularly the case in Asia which will prove in time to be huge for A2 milk. The Asians spend a fortune on preventive health products and A2 milk hits all the right buttons.
As for being a one product company, CJ is exactly right - Fonterra is one product company then by definition?
Thing is, ATM can branch out into any number of A2 milk derived products but at this stage, let the company optimizes the huge potential first in just plain old shelf milk.
You forgot they also have icecream.
54 cents now.
So those who missed out on the placement could have bought in at 49 cents or 50 cents at worse, and ride the trend now back to 60 cents.
Stop moaning and groaning, and don't miss the A2 for the A1.