Bubs Australia Ltd (ASX: BUB) announced today the successful completion of an oversubscribed share placement, raising $40 million at $0.75 per share.
The infant formula and goat dairy products supplier is pushing to expand into China through strategic partnerships with local operators in that market including Chinese e-commerce giant Alibaba.
Proceeds from the share placement will be used to increase working capital, marketing, product development, capital expenditure to enhance the company’s push towards vertical integration and KPI payments to vendors who meet their targets.
The placement will result in the issue of 53,500,000 new shares in Bubs Australia and will dilute existing shareholders.
The Bubs share price was down 6% following the announcement to $0.84.
Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.
And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.
This is your chance to get in at the very beginning of what could prove to be very special investments.
You can find Kevin on Twitter @KevinGandiya.
The Motley Fool Australia owns shares of A2 Milk. 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.