London calling: Wellnex Life secures $14.3 million for LSE listing

Wellnex receives conditional binding commitments of $14.3 million to reach estimated capital requirements for London Stock Exchange listing.

Wellnex has reached estimated capital requirements for its LSE listing. Pic via Getty Images.

• Wellnex receives conditional binding commitments of $14.3 million to reach estimated capital requirements for London Stock Exchange listing

• The company is targeting a listing on the LSE’s Alternative Investment Market in early March

• Wellnex said the funds would be used to boost its financial position as it eyes global expansion

Special Report:  Wellnex Life has announced it has now received conditional binding commitments of $14.3 million at 65 cents per share reaching the company’s estimated minimum capital requirement for a listing on the London Stock Exchange (LSE) Alternative Investment Market (AIM).

Wellnex Life Limited (ASX:WNX) today updated the market on its capital raise for the AIM listing and said it had continued to receive significant interest from both UK and Australian-based institutions and sophisticated investors.

The company earlier this month announced it secured $9 million at 65 cents per share in binding commitments through lead brokers SP Angel, Orana Capital and Barclay Pearce Capital.

Wellnex said it had now raised a further $5.3 million with commitments conditional on the completion of its AIM listing, which it is targeting for early March.

Additionally, Wellnex is undertaking a non-renounceable shareholder entitlement offer with one new share at 65 cents per share for every one share held at the record date of February 13. The entitlement offer is being managed by Reach Corporate.

The company said marketing and book-building efforts for the shareholder entitlement offer are set to continue until its closes on February 26.

Issuance of shares from the placement are set to follow shortly thereafter, aligning with the proposed AIM dual listing timeline.

‘Game-changing moment’: financial position boosted

The company said the funds would be used to redeem the balance of convertible notes, pay outstanding deferred consideration for its Pain Away acquisition (see further below), and cover costs of the AIM listing and entitlement offer.

Joint managing director Zack Bozinovski said securing what the board estimates to be the minimum capital requirement to dual list on AIM was a great achievement for Wellnex Life.

“The proposed admission to AIM, once achieved, will not only save the company $1.4 million in costs through the elimination of circa $12.8 million in debt, but it will also provide increased exposure and credibility to the company as it launches its brands into the European market,” he said.

“This can be a game-changing moment for WNX, we have a strong business growing quickly, are expanding globally, and expecting to be unencumbered by debt.

“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.”

Click here to register for the investor briefing with Wellnex Managing Director Zack Bozinovski, hosted by Reach Markets.

London listing part of global expansion strategy

Wellnex owns a range of pharmaceutical, vitamin and wellness brands and has distribution agreements with major Australian retailers including Chemist Warehouse, Woolworths, Coles and CH2.

Wellnex purchased the well-established Pain Away in 2023, which it describes as the second largest Australian-owned topical pain relief brand.

In 2022 Wellnex also inked a contract manufacturing deal with Haleon (then GSK Consumer Healthcare), which owns brands including Panadol, Sensodyne, Voltaren, Polident, Centrum, Otrivin and Advil.

The deal was to supply its Australian Therapeutic Goods Administration-registered soft gel liquid paracetamol analgesic to Haleon for it to be retailed in Australia and New Zealand under Panadol.

This deal was extended and in August, Wellnex announced it had received its first purchase order from Haleon for its soft gel liquid paracetamol analgesics for the UK.

The company hopes a dual listing on LSE AIM will attract further institutional and retail investment.

This article was developed in collaboration with Wellnex Life Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as London calling: Wellnex Life secures $14.3 million for LSE listing