Goat milk formula producer Bubs Australia is raising $38.3 million at 80 cents per share to help fund its global expansion, including in China.
The raise includes a $28.3m placement and a $10m share purchase plan.
Pac Partners and Bell Potter are working on the transaction.
The price represents a 12.6 per cent discount to the last closing share price.
Bubs says the capital raising will fund global market expansion, including its China manufacturing deal with Beingmate, and strengthen the balance sheet.
The raising comes just days after Bubs announced a plan to start manufacturing in China to combat increased regulatory tightening from Beijing and growing hostility towards Australian products.
Bubs said it had signed a memorandum of understanding with Chinese infant formula giant Beingmate to start manufacturing in mainland China of infant formula from Australian sourced goats milk.
Since listing, Bubs has become Australia’s major producer of goat dairy and one of the fastest growing infant formula brands.
The largest two shareholders include the Alibaba-backed C2, with 13.32 per cent, and Chemist Warehouse with 4.3 per cent pre placement.
China energy bid switched off
Aspirations by China’s State Grid to buy Jemena are understood to have put an end to a possible sale of the energy business.
Healthscope firmly in the sights of Bain
Bain Capital is closing in on its next big target struggling with too much debt – the country’s second-largest hospital operator Healthscope.