KEY POINTS:
A2 Corporation has placed 33 million shares at 10c each, raising gross proceeds of $3.3 million.
The shares were placed with a group of leading New Zealand institutional investors, A2 said today.
A2 licenses intellectual property that enables the identification of cattle producing A2 milk and receives royalty income from sales of the milk.
The placement announced today followed a recent rights issue which raised $11.3m, and was in line with statements provided previously about the company's likely need to raise additional capital, A2 said.
"This placement is the culmination of the interest expressed by institutional investors as a result of discussions that occurred during the rights issue process."
The investor interest was seen as a strong endorsement of A2's business model and future prospects, A2 said.
A2's shares closed yesterday at 11c, having ranged between 35c and 8c during the past year.
- NZPA
