After a successful $14 million share placement, Bubs Australia raised a further $3.4 million through a share purchase plan (SPP). Bubs CEO and MD, Reg Weine, told Food & Drink Business the company was thrilled with the SPP result in what is a difficult equity capital market.
Bubs chair Katrina Rathie subscribed for $30,000 of new shares via her self-managed super fund, Rathie Superannuation, as did non-executive director Paul Jensen via Taranaki Holdings (Jensen Family Retirement Fund).
“The $14 million placement was strongly supported by Australian and international institutional and sophisticated investors. The response to the placement demonstrated the support and belief in Bubs direction and refreshed strategy, led by the new management team,” Weine said.
When Bubs announced the placement, it had hoped the SPP would deliver another $14 million.
“We undertook the SPP because we wanted to give our loyal retail investors the same opportunity to participate in the capital raise as institutional investors, which we felt was the fairest and most equitable thing to do.
“We are pleased that the SPP which was not underwritten, raised an additional $3.4m bringing our total raise to $17.4m before costs which is a strong result in what is a difficult equity capital market,” he added.
Bubs launched the placement and SPP to raise funds to accelerate its growth, invest in expanded production, and support its permanent access to the US market process.
