“Overall,our confidence is relatively high in being able to continue to supply American families in whatever shape or form,regulatory-wise,beyond the 14th of November. We’re just working with the[FDA] in terms of how that might look for it to be seamless,” Lin said.
The US,which is still grappling with an infant formula shortage that began in February,is experiencing out-of-stock rates of 74 per cent,according to retail tracking data. Lin doesn’t expect the shortage to ease until September. “This is far from a short-term thing,” he said.
On Tuesday,the company went into a trading halt after announcing a $63 million capital raising. The funds will be used to increase the number of staff and turbocharge its Melbourne manufacturing facility.
The equity raising to take place consists of a $32.4 million institutional placement and a $30.6 million entitlement offer.
The equity raising is expected to raise 121.2 million new shares,or 19.8 per cent of Bubs’ existing shares,at $0.52 per share,which is an 18.8 per cent discount on the price of $0.64 when Monday trading closed.
“We’re raising money not because we’re in trouble. We’re raising money because we need growth capital,” Lin said.