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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Spark boss ditches *another* Sky decoder
- Carry on: Xiamen for Auckland, Cathay for Christchurch, Virgin for HK and more
- Hooton: Racism lies behind Little’s kaupapa Maori attack
- Hunter's Corner: Sealegs: an underperforming marine technology innovator
- Smith’s swimmable rivers scheme burning holes in farmers’ wallets
Most listened to
- Business Week in Review with Grant Walker and Andrew Patterson
- Rob Hosking on the politics of protest vs the politics of government
- Rodney Hide: Advance means retreat for glacier scientists
- Stewart Germann and Gehan Gunasekara go head-to-head on the franchising debate
- Racism lies behind Little’s kaupapa Maori attack, says Matthew Hooton