SHARES in the a2 Milk company have been placed in a trading halt on the ASX and NZX as it seeks to raise NZ$40 million in new equity.
The new capital raised will be used to support a2M's continued growth in Australia and New Zealand, and its targeted international markets of China, the UK and the United States.
Primarily, it will be used to fund increasing working capital associated with the growth in the infant formula market in Australia, New Zealand and China.
a2M is seeking to raise new equity through a fully underwritten placement of new fully paid ordinary shares to eligible investors in Australia, New Zealand and other international markets.
Goldman Sachs NZ has been appointed to act for the placement, with the placement price to be determined by a bookbuild which has been fully underwritten at a floor price of NZ 67 cents per share.
a2M managing director and chief executive Geoffrey Babidge said the equity raising is expected to "raise the company's capital markets profile and enhance opportunities for investor participation whilst maintaining a conservative capital structure".
