“We are well positioned to support the US, being one of the leading premium international infant milk formula brands. We have scalable production capacity in New Zealand plus existing sales, marketing and supply chain capability in the US distributing to all major retailers and around 27,000 stores nationwide that can be leveraged.”

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Despite the share price plunge, Bortolussi said short-term supply of formula to the US wouldn’t have a major impact to the company’s bottom line.

“We would not expect that this opportunity over the current FDA enforcement discretion period would have a material impact on the company’s financial results in [financial year 2023] due to the market dynamics and cost to serve the US infant milk formula market.”

Off the back of its deal with the US, Bubs has upgraded its revenue forecasts and announced a $63 million capital raising to increase staff and boost its manufacturing capability.