Bubs Australia has completed a share placement exercise, raising AUS28.3 million ($20.6 million) in a bid to aid its international growth plans.
Bubs produces a range of infant nutrition products including formulas, cereals and snacks, and the brand specialises in the production of goat’s milk infant formula. The Sydney-listed firm claims that the share placement was oversubscribed, and that both existing shareholders and new investors purchased shares through the placement.
The company has also announced plans to raise a further AUS10 million ($7.28 million) through a separate share purchase plan (SPP). The SPP opens on 9 September and closes on the 23 September.
According to Bubs, the funding raised through both schemes will support the company’s plans to acquire an ownership interest in a Beingmate manufacturing facility in China and secure an in-market state administration for market regulation (SAMR) application for Bubs Infant Formula products; aid its international market expansion; and provide enhanced balance sheet flexibility and growth capital.
This comes several weeks after Bubs and Beingmate signed a memorandum of understanding which will see Beingmate manufacture Bubs’ goat milk-based infant formula in China. As part of the partnership, Beingmate will reportedly support Bubs in securing a SAMR brand slot.
Dennis Lin, Executive Chairman of Bubs Australia, said: “We are very pleased with the successful outcome of the placement. This shows institutional and sophisticated investors continue to strongly support our vision.
“It is a terrific vote of confidence in Bubs and we thank all who have made it such a success.”
Bubs founder and CEO Kristy Carr said: “Our first priority will be to progress our announced strategy to accelerate SAMR registration for hina manufacture of Bubs® Goat Infant Formula made from 100% Australian goat milk.
“This ‘Created by Bubs’ localisation strategy is capable of replication into other markets with similar barriers to entry.
“We are now well positioned to maintain the operational momentum, strength and agility established during the year, to execute on strategy, and capture new opportunities while ensuring we continue to implement key marketing strategies that respond to the challenges of the current macro environment, including consequences of Covid-19.”
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