Show of support from main A2 shareholder
A2 Corporation reaped $7.4 million in its recent capital raising, with the underwriter topping up the total to its target $11.3 million.
The share issue, of just over 113 million shares at 10c each, was announced last month.
The proceeds will be used to retire A2 Corporation's bank debt and provide for working capital.
It was underwritten by Mountain Road Investments, a company associated with A2’s chairman and majority shareholder Cliff Cook.
Mountain Road also subscribed for 54.3 per cent of the offer, meaning A2 raised $1.26 million from other investors.
A2 Corporation licenses intellectual property relating to the identification of cattle and the production of milk containing the A2 beta casein, which has been identified in some studies as having potential health benefits.
The company signed an exclusive license agreement
with Lotte Milk in South Korea in October 2007 for the production and sale of Lotte A2 Milk.
The first product was launched on shelf in South Korea on
August 1 through Lotte department stores, with the product to be distributed to other retail chains over the next two months.