Shares in Forrest-backed skincare play tank 40pc

“Given our in-market sales performance remains robust, we have chosen to prioritise the future sustainability of profit margins. In the context of above, we believe it is the right thing not to sell at the previously planned levels in June to select wholesalers and retailers.”

The trading update – ending a trading halt BWX entered on Friday morning last week – also revealed a $23.2 million capital raise to service debts. It will issue 38.6 million new shares at 60¢ per share – a steep discount to its last close on June 23 of $1.17 – for the raising, which BWX will use pay down its debt level.

BWX shares were down 42.1 per cent to 68¢ by late afternoon trade on Tuesday.

It said $10 million of capital raise proceeds it will go to the Commonwealth Bank which will, in return, suspend financial reporting obligations on the company’s loans until the end of September.

Bell Potter will lead the capital raise, as Street Talk reported on Sunday.

BWX also said it had started a “review of balance sheet investments, with non-core investments to be de-prioritised or exited” and its “intangible assets may be impaired to a level significantly below their carrying value”.

“As we head into an environment where marketplace conditions are more uncertain, we believe a focus on profitability and balance sheet improvement in the short and longer term is the right course of action and will allow BWX to get on with delivering our previously announced strategic plan,” the company said.

The drastic course correction comes just two weeks after Andrew Forrest’s private company Tattarang took a 16.87 per cent interest in BWX on June 15.

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