Infant formula maker Bubs Australia has raised A$28.3m ($20.6m) through a share placement to enhance its production capacity and work on new product innovations.

The company will use the proceeds to launch Vita Bubs into the vitamin and mineral supplements category.

The company noted that the placement was supported by its existing stakeholders, as well as by the new institutional investors from domestic and international markets.

With 80 cents per share, the new shares under the placement are expected to be issued on 10 September 2020 and will be equally ranked with the existing shares in the company.

Bubs Australia executive chairman Dennis Lin said: “We are very pleased with the successful outcome of the placement. This shows institutional and sophisticated investors continue to strongly support our vision. It is a terrific vote of confidence in Bubs and we thank all who have made it such a success.”

In addition, the Australian firm has announced that it will be undertaking a share purchase plan (SPP) to raise nearly A$10m ($7.2m), with the potential to raise a maximum capital of A$11.7m ($8.5m).

The company noted all the eligible shareholders can subscribe for up to A$30,000 ($21,852) worth of new fully paid ordinary shares without any brokerage or transaction charges.

In addition, the Australian firm has announced that it will be undertaking a share purchase plan (SPP) to raise nearly A$10m ($7.2m), with the potential to raise a maximum capital of A$11.7m ($8.5m).

The company noted all the eligible shareholders can subscribe for up to A$30,000 ($21,852) worth of new fully paid ordinary shares without any brokerage or transaction charges.