It's been a pretty nasty start to the trading week for ASX shares and the All Ordinaries Index (ASX: XAO) so far this Monday. The ASX seems to be suffering from some Monday-itis today, with the All Ords currently down by a significant 1.27%.
But one All Ords share – Bubs Australia Ltd (ASX: BUB) – isn't joining the pity party just yet.
Bubs shares closed at 28 cents each last week. And that's where the ASX dairy company will be staying, at least for a while. While the ASX is falling today, Bubs shares are (perhaps mercifully) frozen at 28 cents each.
This morning, just before market open, Bubs released an ASX announcement to the markets. This informed investors that the Bus share price would be suspended from trading.
Here's what the statement said in full:
Trading in the securities of the entity will be temporarily paused pending a further announcement.
And that's it. That's all we know for now.
Image source: Getty Images
So why is the Bubs share price frozen today?
So what might be going on with Bubs today? Well, it's really not clear. However, Bubs shares have been under pressure ever since the company's latest quarterly update was made public at the end of January.
As we covered at the time, this saw Bubs report revenues of $14.3 million for the three months ending 31 December 2022. That was a 28% drop from what the company reported last year. Half-year revenues also slid, but only by 1% to $37.9 million.
Cash outflows came in at $13.5 million for the quarter, which reduced the company's cash balance from $64.6 million to $51.4 million.
Upon the release of this update, the Bubs share price cratered by a nasty 11.11%. The company has now fallen almost 21% from where it was before this report was released at today's pricing:
So perhaps today's announcement could relate to a capital raising program or some other measure to boost Bubs' balance sheet. Or it could be something else. We'll just have to wait and see what Bubs pulls out of its hat. Watch this space.
