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Litigation firm becomes milk formula maker

Litigation funder Hillcrest is transforming into a baby food company after signing an agreement to acquire the manufacturer of Bubs Organic products.

ASX-listed Hillcrest will change its name to Bubs Australia after its purchase of Sydney-based Infant Food Holding Company is completed.

It will consolidate its share capital and also raise fresh capital of $5.15 million as part of the process.

The company's shares were suspended from trade on Thursday and are scheduled to resume the week of December 19.

Infant Food launched what it says was the first Australian goat milk infant formula, and produces a range of infant nutrition products that are marketed across Australia and on Chinese e-commerce platforms.

A2 Milk, Bega Cheese and Bellamys are among the ASX-listed companies to have enjoyed a surge in market value due to the domestic and overseas demand for infant formula.