By Stuart Condie
SYDNEY – Bubs Australia Ltd. plans to raise A $ 63 million (US $ 43.2 million) to support its growth initiatives, including in the US, where the infant formula maker has secured a number of supply contracts amid ‘shortage of country formulas.
Bubs said Tuesday it planned to issue about 121.2 million new shares. It aims to raise A $ 32.4 million through an investment in institutional investors and A $ 30.6 million through an accelerated rights offering, issuing 1 to 10.42 prorated shares.
Revenue will support costs, such as marketing and employment in the U.S., where Bubs has reached agreements with distributors such as Walmart Inc. Bubs also aims to create inventory and build a second line of high-speed cans, tripling capacity at its Deloraine facility. Tasmania.
Executive Director Kirsty Carr said the shortage of infant formulas in the US had accelerated Bubs ’existing growth plans in the country.
“Recent events have accelerated the U.S. by at least 18 months, and now this is expected to be a major revenue and profit engine,” Ms. Carr.
Bubs said he expects gross revenue of more than A $ 100 million over the 12 months to June 2022, generating more than A $ 2.4 million in underlying profits before interest, taxes, depreciation and gains. It recorded gross income of A $ 46.8 million in the previous fiscal year.
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