Bubs Australia Limited (ASX: BUB)

Trading Halt - Bubs Australia, is a Company that isengaged in the business of inspiring new generations of happy, healthy consumers through its range of Australian made premium infant nutritional and goat dairy products. The Group recently entered into a binding Manufacturing Agreement with Australia Deloraine Dairy Pty Ltd which was a critical step towards achieving China Food and Drug Administration (CFDA) registration. This will help it to expand its operations in China so that it can export its Chinese labelled infant formula products into Mother and Baby stores in China. The demand for goat milk-based infant formula in China has increased during the course. Bubs entered into a Merchant Service Agreement with Alibaba Group and have now launched its Flagship Store on Tmall Global. It is expected that the e Global Merchandise Value (GMV) will be in excess of RMB 5M (~A$1M) in the first 12 months of trading. The securities of this stock will be placed on a trading halt at the request of the Company and the securities will not be trading until the earlier of the commencement of normal trading on 18 June 2018 or when the announcement is released to the market. As per media reports, the group is seeking to raise $40 million while Bell Potter Securities and Morgans have been asked to manage the placement. The stock price otherwise has been rising since the start of the year and the last price ($0.895) looked on a higher side.


Trend of Geographic Sales (Source: Company Reports)
 

Wattle Health Australia Limited (ASX: WHA)

Fully funded for CBDG Joint Venture - Wattle Health is engaged in developing, sourcing and marketing Australian made dairy, health and wellness food products, and has completed an Entitlement Offer and raised a total of approximately $16.0 million while a shortfall offer helped in raising $17.9 million. The entitlements which were not taken up by eligible shareholders were offered to new and existing institutional and sophisticated investors. The Entitlement Offer thus helped in raising a total of $33.9 million; and together with the commitments from institutional investors to subscribe for approximately $20.0 million helped in raising the total equity to $53.9 million. It is expected that new shares will be trading on ASX from 18 June 2018. The Group is planning to construct the first dedicated organic nutritional spray dryer in Australia and supplying its truly Australian organic nutritional dairy range in domestic and in international markets. After this offer, the Group is fully funded towards its obligations under the CBDG Joint Venture. It is expected that the Group will become a vertically integrated Australian organic nutritional dairy company through its participation in the CBDG Joint Venture and will impact the entire value chain from farm to consumer. The stock resumed to trade after a trading halt and slipped by 9.67 per cent on 14 June 2018. The ROE moved from (53.2 per cent) in June 2017 to (117.4 per cent) in December 2017. Despite the dip, the stock looks ‘Expensive” at the current market price of $1.26.


CBDG dried milk production forecast (Source: Company Reports)

 
Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.