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SHARES in infant formula maker Bellamy's Australia (ASX: BAL) plummeted 11 per cent in early trade on Thursday after a two-week trading halt was lifted.
The embattled Tasmanian group went into a trading halt on 7 July following the surprise suspension of a Chinese regulatory licence for its newly acquired canning facility.
Just before the Chinese authorities pulled the rug out from underneath Bellamy's, the company completed a $60.4 million capital raising to fund the $28.5 million acquisition of a 90 per cent interest in the Camperdown Powder canning facility.
On Monday July 17, Bellamy's released a supplementary prospectus in the wake of the rejection of the regulatory licence by the Certification Accreditation Administration of the People's Republic of China (CNCA).
Bellamy's is now offering refunds for the capital raising, and has entered arrangements with underwriters to cover any withdrawals from investors.
The group announced in the supplementary prospectus that is has made full responses to enquiries raised by CNCA regarding allegations made by a third-party relating to record-keeping and product quality issues at the Camperdown facility.
Bellamy's expects revenue of $121 million for the second half of the financial year and full year revenue of approximately $239 million.
At 11.30am AEST Bellamy's shares recovered slightly and were down 9.64 per cent to $6.09.
Business News Australia
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