Wellnex Life Limited (ASX:WNX) Announces A$9 Million Commitments for AIM Dual Listing
Financial Commitments
Wellnex Life Limited has secured initial conditional binding commitments of A$9 million through its Lead Brokers to cornerstone its capital raise for the proposed dual listing on the AIM Market of the London Stock Exchange at $0.65 per ordinary share.
Capital Raise and Entitlement Offer
To ensure eligible shareholders have the first right to subscribe for ordinary shares at the Placement price, the company launched a 1:1 non-renounceable entitlement offer with Reach Markets as the lead manager. The Entitlement Offer, which is not conditional on the AIM listing, will close at 5:00pm Melbourne time on 26 February 2025. Any shortfall from the Entitlement Offer will be addressed through the Placement and the conversion of convertible notes.
Use of Funds
The funds raised will be utilised to redeem the balance of convertible notes at AIM admission, pay the outstanding deferred consideration for the Pain Away business, and fund general working capital requirements, including the costs associated with the Entitlement Offer and the AIM listing. This will result in an annual cost saving of approximately $1.4 million for Wellnex Life.
Future Growth Plans
Following a successful launch in the UK with its licensing partner, Wellnex Life plans to accelerate the rollout of its brands in the UK and other European markets. The company also aims to expand the distribution of its liquid softgel range with existing and new partners, anticipating further revenue growth in domestic and international markets.
Executive Comments
George Karafotias, CEO and Joint Managing Director of Wellnex Life said, “Wellnex Life would like to thank the Lead Brokers for securing A$9 million in initial binding commitments for the proposed AIM dual listing. Recapitalising the balance sheet by the settlement of the outstanding deferred consideration for Pain Away and the elimination of the convertible notes will save the company $1.4 million annually and will also provide a strong platform for revenue growth in domestic and international markets. This is a pivotal and transformative period for the Company that we expect will enhance both Company and shareholder value.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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