The Bull

Tuesday 25

July, 201710:30 AM



Bellamy's offers investors a refund

Bellamy's offers investors a refund

Bellamy's is offering refunds to recent investors, following the suspension of a key licence at the Infant formula maker's Camperdown Powder canning facility.

Share |

By AAP 17.07.2017 04:12 PM

Infant formula supplier Bellamy's has offered a refund to investors who took part in its recent capital raising.

Bellamy's earlier in July completed a $60.4 million capital raising to fund the $28.5 million acquisition of a 90 per cent indirect interest in the Camperdown Powder canning facility and other parts of the company's turnaround strategy.

However following the surprise suspension of Camperdown's key food licence by Chinese regulators the Certification Accreditation Administration of the People's Republic of China (CNCA), Bellamy's on Monday issued a supplementary prospectus to the capital raising offering refunds.

"The supplementary prospectus provides entitled applicants the right to withdraw their applications (and return securities issued to them) and be repaid application monies which they paid to the company," Bellamy's said.

Bellamy's has entered into arrangements with the underwriters - including major shareholder Janchor, which was founded by Bellamy's chairman John Ho - to cover any withdrawals by investors.

Bellamy's also said it had now submitted full responses to enquiries raised by the the CNCA in relation to allegations received by the regulator from a third-party complainant relating to record-keeping and previous quality issues at Camperdown.

"We continue to work closely with Australian trade officials to progress the matter in accordance with CNCA's processes and procedures," Bellamy's chief executive Andrew Cohen said.

Meanwhile, in a trading update, Bellamy's said that its sales and profitability had improved.

The company expects revenue of about $121 million for the second half of the financial year and full-year revenue of about $239 million.

Earnings before interest and tax in the second half is expected to be at the upper end of guidance disclosed in the prospectus.

Bellamy's said it has been cashflow positive since March 2017, reflecting increased sales and an improving inventory position.

It expects a modest net profit for the 2017 full year.

Shares in Bellamy's haven't traded since July 7 while the company deals with the CNCA suspension and considers the implications of the suspension for investors.

The company expects its share to resume trading on July 20.

Archive
Markets
Index: Points Change Percent

PLEASE SUPPORT OUR SPONSORS, AUSTRALIA'S LEADING BROKERS:



© Copyright The Compare Group Pty Ltd. All rights reserved.