Synlait Milk Ltd. (AU:SM1) has released an update.
Synlait Milk Limited and The a2 Milk Company have conditionally resolved their disputes, which will see the end of exclusive supply arrangements by 2025, but with continuing cooperation for current and new product development. Synlait is set to receive a $24.75 million settlement payment, with an expected moderate impact on profitability due to additional costs and manufacturing adjustments. The settlement is contingent on Synlait’s completion of an equity raise and bank refinancing, with shareholder voting at an upcoming Special Shareholders’ Meeting.
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