The NZAX may be about to lose another listing, with A2 Corporation looking to move to the ASX if a merger with Australian-based Freedom Nutritional Products goes ahead.
Merger discussions have been launched between the two companies, with the aim of an all scrip-based ‘merger of equals’ that would see the surviving entity listed on the ASX.
A2 Corporation, which has built its business on the claim that drinking milk containing only A2 beta casein may reduce the risk of several health conditions, currently lists on the alternative market (NZAX:ATM) , while Freedom Nutritional Products is listed across the Tasman (ASX: FNP).
A2 shares have been worth less than 15c for the past two years and currently trade at 7.9c on the NZAX.
In February, the company reported a post-tax loss of $717,172 in the six months ending December after posting a loss of $1.99 million in the last half of 2008.
It already has a presence in Australia, with A2 milk now available in all of the country’s states.
Health food company Freedom Nutritional Products posted a record net profit of $1.84 million in the six months ending December, up 110% on the previous period.
It has restructured its business in recent months with the closure of a biscuit factory, but still suffered lower operating earnings in the interim period for wholly owned businesses, mainly due to lower returns from contract manufactured cereal products and from discontinued lines.