Bellamy’s, the organic infant formula maker, has gone into a trading halt, pending the release of details of an “acquisition” and an associated capital raising.
The company’s shares last traded at $5.76, down from a 12 month high of $15.38.
“The trading halt is requested to allow the institutional component of the capital raising to take place in an orderly fashion,” the company told the ASX this morning.
No further details were released.
Bellamy’s spectacular growth via China suddenly stalled late last year following regulatory changes.
The fallout from falling sales claimed the scalp of CEO Laura McBain, stripped millions of dollars from the market capitalisation and sparked a shareholder revolt which ended with a change in the board of directors.
The company in February posted a 47% drop in first half profit to $7.236 million following problems with sales of its organic infant formula in China.
Bellamy’s now expects full year revenue to be in the range of $220 million to $240 million, at best flat on 2015 and well below previous analyst expectations of about $330 million.