The Bubs Australia Ltd (ASX: BUB) share price fell today by 4.65% at the time of writing to 82 cents. This came as the company’s share purchase plan opened to retail shareholders.
What are the terms of the share purchase plan?
The company advised that eligible shareholders would be able to apply to buy up to $30,000 of new fully paid ordinary shares at a price of 80 cents per share.
To participate, eligible shareholders need to have been holding Bubs shares on 2 September 2020 at 7pm Sydney time, with a registered address in Australia or New Zealand. Additionally, those who participated in the company’s previous share purchase plan in December 2019 could only apply for $30,000 less the amount that they subscribed for under the previous share purchase plan. The share purchase plan may be scaled back if retail shareholders apply for more than $11.7 million of shares or at the company’s discretion.
The share purchase plan closes on 23 September 2020 at 5pm Sydney time.
Earlier this month, Bubs Australia raised $28.3 million through a placement to institutional and sophisticated investors at a price of 80 cents per share.
The funds raised by the company will be used to improve balance sheet flexibility, grow the company’s capital, acquire an ownership interest in an infant formula manufacturing facility in China and to expand into new markets with ‘in market’ manufacturing where possible.
About the Bubs Australia share price
Bubs Australia is a producer of infant formula and nutritional products in Australia. Its products are supplied to Australia, China and various other countries in Asia and the Middle East. It has been listed on the ASX since 2017.
In the year to 30 June 2020, Bubs Australia’s revenue increased 32% to $62 million. Infant formula sales increased 58% to $30 million. The company posted a statutory loss after tax of $8 million in the 2020 financial year compared to a loss of $36 million in the 2019 financial year.
In July, Bubs Australia entered a memorandum of understanding to produce infant formula in China with the use of Australian goat milk.
Also in July, the company announced that it had appointed celebrity Jennifer Hawkins as its global brand ambassador.
The Bubs Australia share price is up 107.5% since its 52-week low of 40 cents. However, it has fallen 14.43% since the beginning of the year. The Bubs Australia share price has fallen 29.66% since this time last year.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- 2 ASX shares I’d buy with $750 right now
- Bubs share price trading at a 5-month low. Is this a buying opportunity?
- Here’s how to make a $1 million portfolio by investing $1,000 a month
- ASX 200 rises 0.8%, investors bet on SkyCity
- Why Bubs, Perseus, WiseTech, & Xero shares are dropping lower
Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Bubs Australia (ASX:BUB) share price falls as share purchase plan opens appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/35enXNo
Leave a Reply