Bubs Australia Limited has closed its $5 million Share Purchase Plan (SPP) on 8 December. The SPP was heavily oversubscribed with applications in excess of $28.7 million received from existing shareholders. The SPP was announced on 3 November 2017.
“Our aim with the SPP was to enable our loyal shareholders to increase their holdings on the same terms as the very successful share placement in connection with the proposed acquisition of Nulac Foods Limited and a 49.9 per cent equity interest in the dairy facilities producing NuLac Foods, together with additional working capital to support our international growth ambitions,” Bubs Australia chairman Dennis Lin said.
“The success of the SPP at more than 5x over subscription clearly demonstrates how supportive the Company’s existing shareholders are of our strategy to create Australia’s only vertically integrated producer of goat milk infant formula.”
The issue of shares pursuant to the SPP is conditional on the approval of the Company’s shareholders at the forthcoming AGM to be held on Thursday, 14 December 2017. Bubs Australia said they will make a further announcement regarding the allocation of shares under the SPP (including the treatment of over subscriptions received) once processing of all SPP applications has been finalised and after the AGM. They regret that it is likely that applicants will not be able to participate fully in the SPP.