Vitamin manufacturer Blackmores has announced a fully underwritten $92 million placement to institutional investors and a share purchase plan for existing shareholders to raise a further $25 million.
The $117 million raising will be used to accelerate growth in Asia, invest in an efficiency programme and strengthen the Sydney company’s balance sheet.
The company told investors today that its business was performing as expected, with profit in-line with guidance previously anniunced.
Demand for the company’s immunity-related products had seen a ‘material increase’, but this was balanced by a lag in orders for other products driven by lower shopper activity and supply chain constraints.
Most active ingredients for vitamins are imported, with the products formulated and packaged locally.
The company’s founder Marcus Blackmore will not invest in the equity raising.
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