Ann: Notice of Meeting and update to remuneration practices, page-17

What a2 is wishing is somewhat irrelevant. Agreement was/is for a2 Platinum® and a2 至初®. My understanding is you can't cancel one and keep another (well, it could be another point for negotiation). What a2 offering to Synlait is lets cancel exclusive rights, keep everything else as is and we slowly will transfer some production to our own facilities and in the same time we are happy to keep our good relations and let you manufacture certain volume or/and products in the future. This will play nicely for both. a2 might shift some production of EL to MVM and keep CL at Synlait for much longer. If Synlait won't agree I do not think relations going to be any good and in case of cancelation don't think a2 will be able to rely on Synlait (even if they wanted to keep CL production). As an option they might cancel current agreement and sign another for CL only. So, my bet is on some sort of talks are going on now in that regard. But I think it would be just a temporary solution.
a2 may apply for SAMR for a different product at MVM. However, if exclusive rights are still in place there is a risk of claims from Synlait that new product is the same or similar to Platinum or CL. If new product will be totally different there is no guaranty it will be as successful. From any point I look what a2 is offering - removing exclusive rights and keep everything else is a best option, but obviously Synlait would want to have some sort of reimbursement.
Actually, I start to suspect that all these supply chain security talks and preservation of capital for that matter is the result of this exclusive rights dispute.

"The a2 Milk Company Limited (a2MC, the Company) advises that after market hours on Friday, 15 September it provided Synlait Milk Limited (Synlait) with written notice cancelling the exclusive manufacturing and supply rights enjoyed by Synlait in respect of stages 1 to 3 of a2MC’s current infant milk formula (IMF) products (being a2 Platinum® and a2 至初®) for sale by a2MC in the markets of China, Australia and New Zealand."