- Bubs Australia (BUB) unveils a new growth strategy following a period of “significant value destruction” over the past three years
- Since the company’s IPO in 2017, it has accumulated losses of $240 million
- To help combat these losses, Bub’s has released a five-point plan to grow capital and maximise shareholder value
- Shares slipped 3.33 per cent to 21.8 cents at 12:47 pm AEST
Bubs Australia (BUB) has unveiled a new growth strategy following a period of “significant value destruction” over the past three years.
In the company’s strategic review presentation, it was highlighted that Bub’s share price lowered 80.7 per cent from 96 cents to 18.5 cents over the three years.
Since the company’s IPO in 2017, it has accumulated losses of $240 million.
To help combat these losses, Bub’s has released a five-point plan to grow capital and maximise shareholder value.
The key focus is expanding its US market, which will be done by growing its product range in US retailers and pharmacies as well as securing FDA permanent access to the US market.
The second focus will be changing its leadership and partners in China, including appointing Jackie Lin as Bub’s General Manager for China and appointing new distributors.
The next stages will focus on optimising its current portfolio of products and utilising its manufacturing facility in Australia.
The final stage of the strategy will include a more disciplined approach to working capital including reducing cash expenditure and operating expenses.
Bub slipped 3.33 per cent to 21.8 cents at 12:47 pm AEST.