Bubs Australia has received binding commitments for $14 million via a placement of 112 million new fully paid ordinary shares, at 12.5 cents per share, as it raises funds for its US market growth plans. Bubs is also offering a share purchase plan (SPP) to raise another $14 million.
The infant formula company said the placement was well supported by Australian and international institutional and sophisticated investors, while the SPP will give all eligible shareholders the chance to participate to a maximum of $30,000.
Bubs CEO Reg Weine thanked shareholders for their support.
“We intend to commence our second production shift at Deloraine in January 2024, invest in sales and marketing, and progress our FDA approval,” Weine said.
The 12.5 cent offer price is at a 24.2 per cent discount to the 16.5 cent closing price on 21 November, and a 25.5 per cent discount to the five day volume weighted average price of 16.8 cents.
In the US, Bubs holds 95 per cent market share for goat milk infant formula, with Weine saying the company expects revenue in FY24 to double on FY23. Strong performance on Amazon has seen the platform account for 54 per cent of Bubs’ US revenue, up from 17 per cent in less than a year.