Bubs Australia Ltd has announced it raised $30 million before costs from a share placement to new and existing investors. The shares were sold at $0.95 per share here and overseas. Settlement is expected around 11 December.
In a statement to the ASX, Bubs said it intended to offer a share purchase plan to eligible shareholders to raise $5 million at the same price as the share placement.
Bubs said proceeds would be used to accelerate opportunities across strategic growth engines.
Bubs executive chair Dennis Lin said the investors were a mix of cornerstone and new institutional investors.
Funds raised would go towards the company's "financial flexibility", growth, customer acquisition, NPD and M&A commitments.
Bubs founder and CEO Kristy Carr said the placement would build on existing operational momentum, including its joint venture with Beingmate and the launch of its organic cow's milk infant formula.
“We most recently upscaled our cross-border e-commerce partnership with Alibaba Group's Centralised Import Procurement unit, along with The Land, which will expand our 020 (online to offline) capability.
“Also, in collaboration with Alibaba we launched a range of innovative Deloraine branded adult goat milk formulations designed for specialised dietary and health needs,” Carr said.
The company would take advantage of increased data driven marketing initiatives across e-commerce and 020 channels as well as expand into the $1 billion per year Chinese junior (7-12 year-olds) nutritional market.
