Bubs Australia rises on share subscription deal to bolster foothold in China

Alpha Professional Holdings

03/03/2022 24:49

**  Shares of infant formula maker Bubs Australia  BUB.AX 
rise as much as 4% to A$0.46
    ** BUB enters share subscription agreement and conditionally
agrees to issue up to 29.5 mln shares to Hong-Kong based Willis
Trading Limited, unit of  Alpha Professional Holdings Ltd
 0948.HK  (https://bit.ly/3tslLw4)
    ** The next phase of the partnership is to deepen engagement
with the Daigou Channel and get closer to consumers in China -
CEO Kristy Carr
    ** Daigou channel is a reseller network where people outside
China buy products and ship them to Chinese consumers informally
    ** The agreement is conditional upon Alpha Group meeting
certain product purchase milestones of at least A$50 mln in FY22
and at least A$80 mln to A$120 mln in FY23
    ** Stock has fallen ~4% so far this year, after dropping 20%
in 2021 

 (Reporting by Indranil Sarkar in Bengaluru)
 ((Indranil.Sarkar@thomsonreuters.com;))