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- Beauty wellness company BWX (BWX) plans to raise $50 million to develop its new manufacturing facility
- The company entered a trading halt this morning and won’t be back trading until Monday or when the company makes an announcement about completing the placement
- Under the placement, BWX will issue around 11.8 million shares for $3.40 each to institutional investors, aiming to raise $40 million
- Additionally, the company is aiming to raise a further $10 million through a share purchase plan
- Around $33.7 million of the funds raised are expected to be spent on the new facility
- BWX last traded for $3.66 per share on July 16
Beauty wellness company BWX (BWX) plans to raise $50 million for developing its new manufacturing facility.
The company entered a trading halt this morning and won’t be back trading until Monday or when the company completes the placement.
Under the placement, BWX will issue around 11.8 million shares for $3.40 each to institutional investors and is aiming to raise $40 million. The raise will be conducted today, July 16.
Additionally, the company is aiming to raise a further $10 million through a share purchase plan (SPP). Eligible shareholders from Australia and New Zealand will be able to purchase up to $30,000 worth of shares at the same price as the placement.
This financial year, BWX is focused on the development and construction of the new manufacturing facility, which is expected to be open by December 2021. Around $33.7 million of the funds raised are expected to be spent on the facility.
“This future world-class facility is expected to significantly boost BWX’s in-house
manufacturing capacity, capability and competitive advantage; provide up-skilling
opportunities for our team; and enhance the ways in which we serve our retail partners, customers, and consumers all over the world,” Chief Operating Officer Rory Gration said.
“Importantly, this initiative supports local manufacturing and Australian jobs at a time when the retail landscape is being heavily disrupted, and as more companies look to future-proof their business models,” he added.
Trading Update
In its unaudited preliminary results, BWX has reported 25 per cent revenue growth for the 2020 financial year.
The same reports show earnings before interest, taxes, depreciation and amortisation (EBITDA) is up 30 per cent. Meanwhile, its net profit after tax is expected to grow by 48 per cent.
CEO Dave Fenlon is pleased with the results and is looking forward to the current financial year.
“Having delivered a strong FY20 result in challenging conditions, we now want to continue with the next stage of the BWX Three Year Strategic Plan by investing in our manufacturing capability, strengthening the balance sheet and future-proofing our supply chain, while ensuring financial flexibility for any opportunities that may arise,” he said.
“Without our team demonstrating tremendous agility and commitment, we could not have arrived at this position,” he added.
BWX last traded for $3.66 per share on July 16.
