|
Ticker:
ATM
Website: www.a2corporation.com
CEO:
Dr Andrew Clarke
Chairman: Cliff Cook
Annual meetind date: July 21, 2006
Shares.net.nz comment
A2 Corporation is planning a further round of capital
raising in the second half of 2006, which the company
says will enable it to develop its United States
business.
The company says its Australian operations are now fully
funded.
A2 remains elusive, however, on a key question for
shareholders: when it is likely to turn in a maiden
profit. At the time of the company's annual result
announcement, Chairman Cliff Cook was quoted as saying:
"We need to sheet home the work we're doing now
before we start forecasting that."
PE comment
ATM has 151,087,500 shares on issue @ .08 giving a
market cap of $12,087,000.
Companies such as ATM trade on a PE of 15 if
they are making money , clearly ATM has some way to go.
Technical comment
ATM's share price has drifted down over the past two
years, but it has found solid support at 6c.
Company comments on its latest result
The increase in total revenue came mainly from increased
interest revenue as well as increased royalties from our
Australian licensee, A2 Australia Pty Ltd.
Volumes of milk sold have more than doubled since
formation of that company after A2 Dairy Marketers went
into receivership. Greater gains were also realised from
foreign exchange transactions, especially relating to
dealings in USD and AUD, also contributing to higher
revenue, along with one-off licence fee of US$400,000
from our US partner, IdeaSphere Inc.
This is the first year that the Company's Financial
Statements include its interests in the associate
company, A2 Milk Company LLC, a USA entity formed in
June 2005. The results of this associated company have
been incorporated using the equity method, and the
Company's share of the resulting associates' loss for
the year amounts to $203k. These results are for a 9
month trading period. The Company invested US$400k for
its 50% share of A2 Milk Company LLC.
With the conclusion of the capital raising initiated in
September 2005, the Company was well funded and
management was able to focus on meeting their objectives
in developing the overseas markets and further
consolidating operations in Australasia.
Latest financial result (full year)
Audited figures for the year to March 31, 2006
(Released June 15, 2006 - figures in $NZ'000)
This year Previous year Change
Trading revenue
793.1
400.9
+97.8%
Other revenue
434.4
48.2
+801%
Total Operating Revenue
1,227.5
449.1
+173%
Pretax surplus/(deficit) (925.8)
(9,017.6)
+89.7%
Tax
-
-
-
Net profit/(loss)
(925.8)
(9,017.6)
+89.7%
Recent milestones
April 2006 A2
Corporation announces its reacquisition of the business
of A2
Australia Pty Ltd as part of its strategy to consolidate
its Australasian operations. The company says extensive
market and consumer research in the United States has
reinforced the business strategy A2C has been
implementing. On that basis, it initiated discussions
with F&N Dairy Investments Limited, a subsidiary of
Fraser and Neave Limited (SGX:FNN), for the re-purchase
of the business and assets of A2 Australia.
The cost of the reacquisition had yet to be finalised,
having regard for final adjustments, but was expected to
be in the region of A$480,000.
October/November 2005
A2 Corporation's two for one renounceable rights issue,
pursuant to an Offering Document dated 1 September 2005,
closed with acceptances being received in respect of
29,549,640 rights, representing 29.34% of the rights
offered. Machin Investments Limited which
held 40% of the shares in the Company did not take up
its rights (or renounce those rights in favour of any
other party). As a result, the shortfall of 30.66%,
representing 30,885,360 rights, together with a further
40,290,000 shares (representing the entitlement of
Machin Investments
Limited) is fully underwritten by Mountain Road
Investments Limited. The company allotted the shortfall
in its rights issue of 71,175,360 ordinary new shares to
Mountain Road Investments and now has 151,087,500
ordinary shares on issue.
Company activities
A2 Corporation owns and licenses intellectual property
that enables the identification of cattle for the
production and subsequent marketing of A2 Milk. A2 Milk
is naturally produced to contain maximum amounts of a
milk protein variant that is associated by a number of
studies with potential
benefits in some individuals. A2 Corporation does not
produce A2 Milk, but licenses its intellectual property
to suitable partners around the world.
The company receives royalty income from sales of A2
Milk products and testing for A2 cattle.
|
