Infant formula company Bubs Australia will tap investors for a funding injection, announcing a capital raising before the market opened on Monday and a trading halt in its shares until Friday September 4 at the latest.
The news came just before the fast growing infant formula company unveiled its 2019-20 full year results, where it delivered a 24 per cent increase in revenue to $54.64 million, but fell short of recording a full year profit.
ASX-listed Bubs reported a statutory net loss of $7.79 million, which was well ahead of last year’s $35.51 million loss and ahead of consensus. The market was expecting a loss of $8.97 million.
The company, which has established a niche in the goat milk infant formula category in Australia and in China, has over the past two years announced plans to increase its offering substantially, including by entering the cow milk infant formula category and by reaching new agreements with the supermarket majors to stock its products.