I think it is fair to say that the Bubs Australia Ltd (ASX: BUB) share price has had a month to forget.
Since peaking at 96 cents on August 22, the infant formula and baby food company's shares have fallen over 45% to 52.5 cents.
Why have its shares sunk lower?
In August speculation mounted that Bubs might be a takeover target for an unnamed competitor.
Unfortunately for investors looking to make a quick buck, after the market closed on August 22 management came out to say that there was no takeover offer coming.
Unsurprisingly on August 23 the Bubs share price sank like a stone and has been trending lower ever since.
In addition to this, on September 1 Bubs completed a $16 million placement at a significant discount of 45 cents per share. This capital raising added further pressure to its rapidly weakening share price.
Shareholders will no doubt be hoping that the company delivers some stellar sales growth in the coming months to get its shares heading in the right direction once again.
