Bellamy hit by cannery crisis
SHARES in embattled infant formula maker Bellamy’s fell sharply as they resumed trading after the surprise suspension of a key Chinese regulatory licence for its newly acquired canning facility.
Bellamy’s shares, which were suspended from trade for nearly two weeks, dropped 34c or 5 per cent, to a closing price of $ 6.40.
The company this month completed a $ 60.4 million capital raising to fund the $ 28.5 million acquisition of a 90 per cent indirect interest in the Camperdown Powder canning facility. However, following the July 7 suspension of Camperdown’s Powder’s food licence by the People’s Republic of China, Bellamy’s on Monday issued a supplementary prospectus to the capital raising offering refunds.