Wellnex Life directors commit $1.5m to current entitlement offer
The directors of diverse consumer healthcare business Wellnex Life (ASX: WNX) have committed to subscribe for a minimum of $1.5 million as part of the company’s current entitlement offer.
The offer is part of the company’s growth strategy, which includes a proposed listing on the AIM market of the London Stock Exchange.
Funds raised and any shortfall will be used to redeem the balance of convertible notes currently on issue, finalise the recent acquisition of Pain Away and fund general working capital.
Non-renounceable offer
Wellnex announced in February that eligible shareholders could subscribe for ordinary shares at $0.65 per share through a 1:1 non-renounceable entitlement offer.
The offer is now open until 26 February, with shareholders not only able to take up their entitlement but also able to subscribe for additional shares.
Wellnex Life revealed yesterday that it had obtained conditional binding commitments of $14.3m from both UK- and Australian-based institutions and sophisticated investors.
This will cover the estimated minimum amount of capital required to achieve the company’s proposed listing on the London Stock Exchange’s Alternative Investment Market (AIM) next month.
‘A great achievement’
“Securing what the board estimates to be the minimum capital requirement to dual list on AIM is a great achievement for Wellnex Life,” managing director Zack Bozinovski said.
“The proposed admission to AIM will not only save the company $1.4m in costs through the elimination of circa $12.8m in debt, but it will also provide increased exposure and credibility as it launches its brands into the European market.”
“Wellnex Life has a strong brand and product portfolio and, with a strengthened balance sheet, I am confident that it will have the necessary platform from which to grow revenues and margins.”
Run of success
The strong support for the capital raising follows a run of success for the company as it expands its brand, product range and market exposure.
Wellnex Life has built a strong portfolio of brands and signed licensing deals, including for its own developed brands Wakey Wakey and Nighty Night, leading topical pain relief brand Pain Away (acquired in 2023) and licensing agreements with domestic and global pharmaceutical companies such as Haleon in the UK.
The company achieved a breakthrough earlier this month, with new market authorisation (MA) approval from the Therapeutic Goods Administration for its liquid paracetamol plus caffeine soft gel.
This latest approval adds to the company’s previous MAs for liquid paracetamol, liquid paracetamol plus ibuprofen and liquid mini-ibuprofen.
Ongoing discussions
Wellnex Life is currently in discussions with key partners to expand both its intellectual property (IP) arrangements and brands beyond their current distribution territories, including the expansion of the product portfolio into Europe and the Middle East.
The company has also delivered its first product for the UK market, as part of the global extension of its agreement with Haleon.
The business model is paying off, with revenue growing over 112% in H1 FY25 versus the prior comparative period, with brand revenue 182% and IP licensing up 64% for the same period.