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- Goat-milk infant formula company Nuchev (NUC) has entered a trading halt ahead of a $15 million capital raise
- The raise includes a $12 million one-for-8.75 entitlement offer and a $3 million institutional placement, with shares priced at $2.33
- Nuchev will issue approximately 6.4 million new shares, representing approximately 14.3 per cent of Nuchev’s existing issued capital across both the Entitlement Offer and Placement
- Funds will be used to invest in key distribution channels and partnerships, as well as Nuchev’s sales, marketing and brand positioning strategies
- Company shares will be back trading on Friday, July 31, or when it completes the capital raise
- Nuchev last traded for $2.70 per share on July 28
Goat-milk infant formula company Nuchev (NUC) has entered a trading halt ahead of a $15 million capital raise.
The capital raise includes a $12 million one-for-8.75 entitlement offer and a $3 million institutional placement. Under the raise, Nuchev shares will be priced at $2.33 each.
Nuchev will issue approximately 6.4 million new shares, representing approximately 14.3 per cent of Nuchev’s existing issued capital across both the Entitlement Offer and Placement.
Nuchev says the funds will be used to invest in key distribution channels and partnerships, as well as to advance the company’s sales, marketing and brand positioning strategies.
Nuchev’s largest shareholder, founder and CEO Ben Dingle, will take up 100 per cent of his pro-rata entitlement, equaling roughly $5.5 million.
Once the raise is complete, the company expects its June 30 proforma cash balance to total approximately $24.4 million, with no debt.
Meanwhile, the company maintains sales for Nuchev’s goat milk, Oli6, infant formula and nutritional products have remained strong. Over the fourth quarter, net revenue grew 25 per cent compared to the previous corresponding period.
Despite the strong figures, Nuchev also admits sales in the fourth quarter were softer than expected as the panic buying phenomenon began to wind down and lower international student numbers in Australia restricted the daigou shopping channel.
Daigou is a form of cross-border exporting, in which an individual or group of exporters outside of China purchase commodities for Chinese consumers.
“It has been another dynamic quarter in an overall challenging environment and we have, with our strategic channel partners, demonstrated the ability to predict change, pivot and adjust quickly,” Ben told the market.
Company shares will be back trading on Friday, July 31, or when Nuchev completes the capital raise.
Nuchev last traded for $2.70 per share on July 28.
