Care A2+ infant and toddler formula maker secures AU$50 million in growth capital

Care A2 Plus, the manufacturer of Care A2+, Australia’s first infant and toddler formula using single sourced milk from Australian grass-fed A2 cows, has entered an equity funding agreement for AU$50 million with global alternative investment group LDA Capital (LDA).

The equity is committed through a Put Option Agreement that grants Care A2 Plus the right, at its discretion, to issue shares in sequential tranches for a total value of AU$50 million over a three-year period.

Under this agreement, Care A2 Plus will draw down capital as required and will utilise the financing to meet capital expenditure on plant and equipment, local and offshore marketing activities and production costs.

This method of fundraising provides management with a flexible financing tool and allows the Company the ability to deploy cash on an as-needed basis rather than fully diluting existing shareholders.

The essential terms of the arrangement are:

1. Capital commitment of AU$50 million for the next three years;

2. Capital is available to be called once Care A2 Plus, or its parent company, is listed on the Australian Securities Exchange;

3. Put option granted in favour of Care A2 Plus to issue shares at a price representing 90% of the 30-day VWAP, with a minimum price capable of being fixed by Care A2 Plus;

4. Each exercise of the Put Option is for a maximum of 10 times the average daily number of shares traded on the Australian Securities Exchange during the preceding 15-day period;

5. Issue of call options in favour of LDA for 6% of Care A2 Plus’s issued capital at a premium of 35% above the VWAP for the first 5 days of trading on the Australian Securities Exchange; and

6. LDA is prohibited from holding more than 19.9% of the issued shares in Care A2 Plus.

The CEO of Care A2 Plus, Mr Iljko Miocevic, stated, “We welcome this endorsement of the opportunity Care A2 Plus represents to investors from LDA Capital.

“We see this as the next logical step from our launch nationally with Chemist Warehouse. At Care A2 Plus we are proud to share the future today with Australia’s First Premium A2 formula for Infants and Toddlers.”

The Managing Partner of LDA Capital, Mr. Warren Baker, said:

“LDA Capital is pleased to support the growth and expected scale of Care A2 Plus, as it seeks to become an industry leader in a global market that is expected to reach over USD $55.7 billion by 2025.

“Beyond the financial opportunity enabled by the financing, LDA Capital is proud to invest in a company innovating the food production market which is replacing synthetic and chemical-heavy baby formula with products that are clean, nutritionally dense while focusing on sustainability of the ecosystem and wellbeing of consumers.”

About Care A2 Plus

Care A2 Plus produces Care A2+, the first Australian made A2 infant and toddler formula created from the latest scientific research and is nutritionally closer to human breastmilk than any competitor.

The milk is single sourced from Australian grass-fed A2 cows maintained on fertile land without the use of fertilizer or irrigation, segregated into their own A2 herds milked separately, with the milk product being isolated throughout the supply chain.

The production process is vertically integrated from ‘grass-to-tin’ and is fully traceable, each tin produced having its unique QR code that verifies the batch number, the day of production, the weather and the air clarity on that day.

The product is distributed Australia-wide with distribution agreements having been entered into with over a dozen Asian countries, further agreements with European, Middle East and North American distributors pending.

For more information on Care A2 Plus Products go to www.careA2plus.com.au

About LDA Capital

LDA Capital is a global alternative investment group with expertise in complex, cross-border transactions.

LDA has executed over 200 transactions in both public and private markets across 43 countries with an aggregate value over US$10billion. For more information, please visit www.ldacap.com.

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