A2 Corp requests trading halt
Trading in milk marketer A2 Corporation has been halted at the company's request pending an announcement.
The NZAX-listed company is negotiating with the stock exchange to move onto the NZX main board and become part of the NZX50 index.
That was expected to happen before Christmas, and would make the company much more attractive to institutional investors.
The shares are at 68 cents, with a market capitalisation of $411 million making it larger than some of the NZX50 constituents.
However, the liquidity requirements for index members mean the company may be ineligible in its current state.
About 51.5 per cent of the company is owned by Freedom Foods and Cliff Cook's investment company, Mountain Road, and the shares are thinly traded.
A2 markets milk containing only the A2-type of beta-casein, while standard milk contains the A1 type. Research is so far inconclusive on the health benefits of A2 milk, but many consumers believe in its qualities.
In Australia, where A2 has distribution in major supermarkets, sales have grown significantly and are forecast to reach A$34m in the first half of 2013, up from A$27.7m in the second half of 2012.