I am just saying that it is a possibility since we do not know a) the contract terms and b) the actual facts of the alleged breach of contract.
Since there is apparently a negotiation to take place, and A2's obvious end goal is to set in place an exit point to the supply agreement, financial compensation might be one of the options available to achieve this goal.
Synlait is highly reliant on A2M's periodic rolling forecasts of demand to plan and adjust its production schedule. So I could see them theoretically making a case that they aren't fully to blame. I'm not saying there is any merit to the argument.
Synlait had the right to exclusivity for the period of the contract, so if A2M want out early it has to be a clear-cut breach of contract, so if it is anything less than clear cut, then that is where the negotiation comes in. Hopefully it is straightforward and the parties can just decide on a timeline to transition English label over to MVM.
A2M Price at posting:
$4.28 Sentiment: Hold Disclosure: Held
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