INFANT milk formula manufacturers Bellamy's (ASX: BAL) has offered to give back $45 million to retail shareholders who participated in its recent capital raising, as it simultaneously announced a profit upgrade.
Bellamy's shares have been in a trading halt since July 7 when China's Certification Accreditation Administration (CNCA) suspended the licence of Camperdown Powder, a cannery in Victoria.
The company ran a $60 million capital raising, with $45 million from retail investors and $15 million from institutional investors, to pay for the Camperdown cannery plant.
Late on Monday, it issued a supplementary prospectus to investors to allow them to claim their money back to ensure compliance with the Corporations Act.
Bellamy's CEO Andrew Cohen says that Camperdown, through the Commonwealth Department of Agriculture and Water Resources (DAWR) has now submitted comprehensive responses to each of the inquiries raised by CNCA.
"We have now submitted via DAWR detailed responses to each of CNCA's enquiries. We continue to work closely with Australian trade officials to progress the matter in accordance with CNCA's processes and procedures," Cohen says.
Bellamy's shares last traded at $6.74 and remain in a trading halt.
The company was able to provide some good news for its shareholders by also announcing that its second half earnings were expected to be in the upper end of guidance.
Bellamy's says sales and profitability have improved and revenue for 2H17 is expected to be approximately $121 million with full year revenue for 2017 expected to be around $239 million.
Business News Australia
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