Skin care and beauty products business BWX has entered a trading halting with expectations it is set to release a profit downgrade and potentially launch a capital raising.
Trading in the company’s shares were halted on Friday which the company said was related to a trading update.
With the halt in place until as long as Tuesday, the expectation is that the group will also tap the market.
BWX has brands such as Sukin, Andalou, Mineral Fusion USPA and Nourished Life.
Shares in the company have fallen sharply this year from $4.39 at the start of January to $1.17 on Friday.
Its market value is $188.2m.
It comes only one week after Andrew Forrest’s Tattarang emerged with a 17 per cent interest in BWX.
Bain Capital looked at buying BWX in 2018 but later walked away from a possible buyout.
For the six months to December, the company posted a $2.3m loss amid disruption linked to the global pandemic.
BWX counts Mark East’s Bennelong Australian Equity Partners as its largest shareholder with a 17.07 per cent holding.
Mr East personally owns 0.8 per cent of the stock.
The company is in the final stages of commissioning a new manufacturing facility in Clayton, Victoria which has pushed debt higher along with supply chain issues, say market analysts.
An equity raising could be launched to reduce debt or to buy the 49 per cent interest of Go-To that BWX does not already own.
At December, BWX had $89.6m of current liabilities and $165.3m of current assets.
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