Australian infant formula maker Bellamy's has gone into a trading halt on the ASX at its own request after China's CNCA suspended the manufacturing licence of its latest acquisition, Camperdown Powder.
Bellamy's, in an announcement to the ASX, said it needed to determine the reasons behind, and impact of, Camperdown'ssuspension of its CNCA licence by the China authorities overnight.
In June, in what it said was its business stabilisation plan, Bellamy's said it had agreed to buy Camperdown - a powder products blending and canning line in Braeside, Victoria, for A$28.5 million ($29.6m).
It also announced a further reset of its supply contract with Fonterra Australia for a one-off payment of A$27.5m.
The deals were financed through a fully underwritten A$60.4m capital raising, which the company completed early this month.
The stock, which was hit hard last year due to problems with its trade channels into China, improved on the back of last month's deal, and last traded at A$6.74 a share.
Bellamy's - once a high flying-favourite on the ASX - ran into trouble last year when China tightened its infant formula regulations, allowing each legal entity just three brands with three recipes for infant formula.
A further challenge came from a regulatory requirement that any Chinese-labelled product would require registration from 2018.
