Skin Elements Raising $2.5m to Finalise Development of SE Formula Antimicrobial Technology

Australian natural biotechnology company Skin Elements (ASX: SKN) has launched a $2.5 million capital raising to complete the development of its plant-based SE Formula antimicrobial technology as an ingredient in its range of skin products.

The placement over two tranches has received binding commitments from professional and sophisticated investors and will see the company issue a total 1.25 billion shares, more than doubling the number of shares currently on issue.

The company advised current shareholders that the transaction would dilute their holdings by approximately 64%.

Commercialisation Plans

“This funding program will enable us to deliver on our award-winning and unique SE Formula all-natural antimicrobial biotechnology,” executive chair Peter Malone said.

He added that the raising would help Skin Elements finalise its development plans towards commercialisation.

Skin Elements has priced the new shares at $0.002 each—a 33% discount to the last closing price of $0.003 and a 19% discount to the 15-day volume weighted average price to 10 October.

It will also attach one free option for every two shares, exercisable at $0.006 with a three-year expiry.

Natural Alternative Products

SE Formula, which Skin Elements has developed over the last 16 years, is at the core of every natural product in its portfolio, each of which the company believes has the potential to provide “viable and efficacious alternatives” to chemical-based products in mass markets worldwide.

The company’s flagship formulations – including its Soleo Organics sunscreen, PapayaActivs personal protection range, SuprCuvr disinfectant, and ECO-Nurture agriculture biostimulant – are all ready for transition into commercial revenue programs.

In developing new products, Skin Elements undertakes research into natural organic ingredients and processes to prepare prototype formulations before producing test batches and conducting product trials, test marketing, and regulatory certifications.

The company continues to build initial traction in Phase 3 negotiations on distribution agreements and commercial scale production across its product range.