Managing director Geoff Babidge said the capital raising was important to help strengthen the specialty milk processor and marketer’s balance sheet, providing funding flexibility for its growth in Australia, NZ and targeted markets in China, the UK and the US.
Increased working capital was particularly needed to expand the infant formula market business in Australia, NZ and China in the wake of unexpectedly bullish demand.
The dual NZ and Australian-listed A2 is also planning a further $NZ3 million capital raising through a at 68c a share purchase plan to be offered to shareholders already on the company’s register.
Company chairman David Hearn said the level of support from existing shareholders and new investors was heartening.
Goldman Sachs NZ managed and led the share placement underwriting process.