AuMake will use the proceeds of a $20 million capital raising to fund an aggressive expansion to meet surging Chinese demand for Australian-made products.
The firm, which debuted on the ASX in October following a reverse takeover of a former gas and drilling company, sells Australian cosmetics, vitamins, long-life milk, baby products, and wool and leather products to so-called daigou shoppers for export to China.
After raising $6 million from institutional and private investors in October, the company now aims to raise a further $20 million through a 63 cents per share offer to existing shareholders in order to increase its store network from six in Sydney to at least 20 nationwide by mid-2019.
According to an unaudited financial update released on Wednesday, AuMake said it nearly doubled monthly sales from $911,000 to $1.77 million between July and November.
Since listing in October, the company has acquired health supplements producer Health Essence, and wool manufacturer Jumbuck.
November sales for its Health Essence products were equal to 26 per cent of the brand's entire Health Esence sales in the financial year so far, the company reported.
Last year, almost 1.2 million Chinese nationals visited Australia, spending an estimated $9.2 billion, as enthusiastic shoppers picked up local products to send back to China.
Professional daigou tap into China's hugely popular social media and shopping app, WeChat, to feed the growing demand and fascination among China's burgeoning middle class for products with Australian branding that is often perceived as healthy, natural and reliable.
Shares in AuMake were down two cents, or 2.8 per cent, at 70.5 cents at 1530 AEDT.
