It sounds like a private placement for instos, not for us retail...

It sounds like a private placement for instos, not for us retail investors. Of course it will result the dilution of our shares, here is my guess.

The new regulation requires any baby formula companies owned % of CNCA licensed plants before it can sell products to Chinese customer. examples set as below:

A2m: 8% of Synlait
Bellamy: 90% of Camperdown
WHA: x% of Blend
Bubs: ?

Noticing the recently news released on Chinese government website, there is one business man who is seeking to M&A MG in Australia. Obviously, it;s difficult to M&A 100% stake of MG due to their rubbish capital structure (The worst example ever in the history of IPO in ASX）, However, it is possible to M&A its CNCA licensed plants (This is the only registered plant left which has not M&A by Chinese). Who can be this business man? To reminder ya'all, JD hold 20% of MGC, however it does not give JD rights to vote? Richard Liu is the husband of Nancy whose VC firm hold 16% stake of bubs.

I am not saying Bubs will M&A of MG, but it's more likely to get % stake of its CNCA licensed plant. If Bubs does not intend to use CR to merger CNCA licensed canning facility, I am 100% sure that Bubs will not be granted by Chinese Authority to sell products in China.