The Bubs Australia Ltd (ASX: BUB) share price is having a great month, despite no news having been released by the company in more than 3 weeks.
Right now, shares in Bubs are trading for 50 cents apiece. This time last month, they were going for 39 cents each. Those figures represent a 28.21% increase in the Bubs share price over the last 30 days.
While that’s impressive, perhaps more so is the fact the gains have all come off the back of a single announcement to the market.
Let’s take a look at the news driving the Bubs share price.
On 18 June, Bubs announced it’s set to break into the United States infant nutrition market with its Aussie Bubs range of formulas.
According to the company, the US market is worth around $5.1 billion annually with a projected forecast growth of 4% by 2025. Some 93% of the products within the US infant nutrition market are powder formulations.
What’s more, Bubs’ product will be the only Australian goat milk formula to be sold in the nation.
On the day of the announcement, the Bubs share price closed a mammoth 28% higher than its previous day’s trade.
Bubs’ products will be available for purchase in the US through Walmart Inc‘s online store and Amazon.com Inc.
As part of the shift, Bubs will establish a US subsidiary, Aussie Bubs, to be based in northern California. Its products will be sold on Walmart’s online store from September.
Bubs Australia share price snapshot
Despite the month’s growth, the Bubs share price is still in the red on the ASX. It has fallen 16.6% since the start of 2021 and 50.5% since this time last year.
The company has a market capitalisation of around $306 million, with approximately 612 million shares outstanding.