The Bubs Australia Ltd (ASX: BUB) share price has started the week with a move higher.
The fledgling infant formula and baby food company's shares finished the day over 3% higher at 78.5 cents.
What happened?
The market appears to have reacted positively to an announcement out of Bubs this morning regarding its recent capital raising.
According to today's release, the company's $5 million share purchase plan closed on December 8 and was heavily oversubscribed. In fact, applications from existing shareholders totalled an impressive $28.7 million.
Bubs undertook the capital raising in order to push ahead with its strategy to create Australia's only vertically integrated producer of goat milk infant formula.
Funds will be used to acquire Nulac Foods Limited, a 49.9% equity interest in the dairy facilities producing its products, and provide additional working capital to support its international growth ambitions.
Time will tell whether Bubs is the next a2 Milk Company Ltd (Australia) (ASX: A2M).
