The last time BUG did a CR was late 2016/early 2017 (see below) so it’s been 3.5 years since their last equity raising. Dennis Lin joined the board in late 2017.
BUG and BUB are two different businesses. Aside from both being in fast moving consumer goods (FMCG), the only real commonality is that Wattle Hill Funds were an investor in both businesses, hence Dennis Lin’s involvement.
BUG sells its macadamias exclusively into the US whereas BUB is really a China story. I haven’t looked at BUB for a while but my understanding is it’s a “capital lite” model so doesn’t own a lot of the production and processing infrastructure.
BUG owns its own orchard (although it does buy kernel from other growers the majority comes from its own backyard), as well as processing and marketing infrastructure so they have a degree of vertical integration.
Worth having a look at both businesses most recent 4Cs... (hint BUG’s sales were higher than BUB’s) yet here we are with a $20m market cap vs BUB’s $400m. I know it’s not an apples for apples comparison, but there are a few conclusions that can be drawn, including 1) BUG is undervalued and 2) BUB is overvalued
The last time BUG did a CR was late 2016/early 2017 (see below)...
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