ATM - A2 Milk Corporation Limited

[airedale]

Quote "But a2MC's strategy has always been a longterm one. It can be tweaked a little to respond to surges in market demand, but the long term issue for a2 has never been whether its SP can get above $1 - it has always been a question of how long it takes to exceed $5 or $10, and at what point farmers in major milk-producing countries decide en masse to stop producing medically hazardous A1 milk, and producers such as Fonterra accept the inevitable (which they already know but won't admit). This whole thing has got a long long way to go yet." unquote

I have just been re-reading some of Prof Woodward's old newsletters. He is of the opinion that eventually {whenever that is} A1 cows will have to go and A2 cows will predominate in the dairy industry.

[black knat]

......it has always been a question of how long it takes to exceed $5 or $10, and at what point farmers in major milk-producing countries decide en masse to stop producing medically hazardous A1 milk......

Grossly over-stated. As I am sure you know... medical evidence of adverse health effects in the general population from drinking milk containing A1 does not exist.

[blobbles]

Having lived there you would know the one child policy has been expanded to two , hence some of the excitement in this sector ....

I am aware, however the cultural bias will live on in China for a long while yet. Even allowing for 2 children - traditionally Chinese families have as many children as possible. 4-10 was not unusual before the policy was enacted. So being limited to 2 isn't going to change their desire to give the best to their children. You will also note that 2 children is only possible for those parents where at least one of the parents is a single child - perpetuating the cultural bias.

[Joshuatree]

Approaching a 2 year high and mkt cap re $661 million; just a little bit over exuberant a bit too frothy like a cappuccino?

So how can anyone justify the current mkt cap up re $30 million today to approx $685 million !!!? Something tells me its another rinse and repeat. Sell some/all and take my chances with the number of shares i get in the spp.

Thanks stoploss and gmatt. I never got an email or snail mail with the application form. Anyway have applied for the max online along with everyone else.

[Bjauck]

So how can anyone justify the current mkt cap up re $30 million today to approx $685 million !!!? Something tells me its another rinse and repeat. Sell some/all and take my chances with the number of shares i get in the spp.

Thanks stoploss and gmatt. I never got an email or snail mail with the application form. Anyway have applied for the max online along with everyone else.

There must be some smaller shareholders such as me. I do not have the ready cash to apply for $15,000 worth. So, even amongst the put-upon small shareholders, it will be a case of the rich becoming richer!

[Scooter]

the offer is going to be massively scaled back. They are after $3m and no oversubscriptions with applications being scaled on a proportionate basis, clause 6.3 in document

[Not too Flash]

There must be some smaller shareholders such as me. I do not have the ready cash to apply for $15,000 worth. So, even amongst the put-upon small shareholders, it will be a case of the rich becoming richer!

They may have a minimum of say 500 for all applications so may be worth applying for what you can afford and you may be surprised.

[Bjauck]

So, I presume, if you apply for $5000 in the spp - you will get 1/3 of the number of shares that the shareholder who applies for $15,000 will receive. Is that how the scaling will work?

I would like $2000 of new shares but I do not have $15000 cash. It is why as a small shareholder, I do not like this type of SPP.

[Bjauck]

They may have a minimum of say 500 for all applications so may be worth applying for what you can afford and you may be surprised.

I have read the documentation and did not see anything about a minimum number of shares allotted under the SPP. If that were the case I think that it should be expressly stated.

[Bilbo]

The offer document states "6.3 If a2MC receives valid applications in excess of NZ$3,000,000, it will scale back all applicationson a proportionate basis..."

Can anyone clarify what this means in plain English? What is it proportionate to? The amount of shares applies for (so all those that apply for $15k will get the same scaling % applies as those who apply for $5k), or is it proportionate to your existing shareholding, so larger holders get more?

I assume the first, but the wording is not clear.