Organic baby food and infant formula company Bubs Australia (ASX:BUB) has received applications in excess of $28.7 million from existing shareholders in its Share Purchase Plan intended to raise $5 million.
The funds are intended for the proposed acquisition of NuLac Foods and a 50 per cent interest in the milk company’s dairy facilities.
The funds will also provide additional working capital to support the company’s international growth ambitions.
Bubs Australia Chairman Dennis Lin said the oversubscription demonstrates the support from its existing shareholders for its strategy to produce goat milk infant formula for the Australian market.
The company said it is likely that not all applicants will be able to take part in the Share Purchase Plan due to the number of applications received.
Shares in Bubs Australia (ASX:BUB) are trading 0.66 per cent higher to 77 cents.