Wellnex Life secures $9m to propel dual listing on London’s AIM market

Wellnex Life secures key AIM market listing commitments, boosting expansion and strengthening its balance sheet.

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• Wellnex Life secures key commitments for its AIM dual listing

• Funds raised will be used to eliminate convertible notes and settle Pain Away’s deferred consideration, saving $1.4 million annually

• Strong revenue growth and shareholder entitlement offer support expansion, with the listing set to enhance global market visibility

Special Report: Wellnex Life has taken a significant step towards its proposed dual listing on the AIM market of the London Stock Exchange (LSE), securing binding commitments through lead brokers SP Angel, Orana Capital and Barclay Pearce Capital.

Wellnex Life Limited (ASX: WNX) notes that the likely listing will make it the first ASX-listed company in a decade to make the move to the AIM market.

The commitments, totalling $9 million, will cornerstone the capital raise at $0.65 per share, positioning the company for accelerated global expansion.

Wellnex CEO and joint managing director George Karafotias said the move would enhance the company’s visibility and access to international capital markets.

“This strategic recapitalisation strengthens our balance sheet and provides a solid platform for sustained revenue growth in both domestic and international markets. This is a transformative period that enhances both company and shareholder value.”

Brand diversity and partnerships boost expansion

Wellnex Life has built a diverse portfolio of consumer healthcare brands, including Pain Away, Australia’s leading topical pain relief brand, stocked at major pharmacy chains including Chemist Warehouse, which had a stellar debut on the ASX on Thursday.

As the company listed, Chemist Warehouse CEO Mario Verrocchi flagged plans to add at least 400 more stores and to become a vertically integrated giant like UK health and beauty retailer Boots.

Wellnex also holds global licensing agreements with leading pharmaceutical players, including LSE-listed Haleon, which owns brands such as Panadol, Sensodyne, Voltaren, Advil, and Centrum.

A key driver of Wellnex Life’s expansion has been its contract manufacturing partnership with Haleon, which stemmed from the company’s development of a liquid soft-gel paracetamol formulation. This innovation, which secured approval from the Therapeutic Goods Administration (TGA), has been licensed to Haleon for use under the Panadol brand in Australia.

Most recently, Wellnex received further TGA approval for a liquid paracetamol plus caffeine combination, expanding its portfolio of approved soft-gel pain relief products. The company’s licensing and supply agreement with Haleon, initially struck in 2022, has since been extended, with plans to launch the soft-gel Panadol product in the UK.

Looking after shareholders

To provide existing shareholders with an opportunity to participate in the company’s expansion, Wellnex Life has launched a 1:1 non-renounceable entitlement offer, managed by Reach Corporate.

This offer allows shareholders to subscribe for shares at the same terms as the placement. Any shortfall from the entitlement offer will be used to complete the placement, ensuring full allocation of shares for the capital raise.

Lead brokers will continue marketing and book-building efforts until the entitlement offer closes on 26 February, 2025. The issuance of shares from the placement will follow shortly thereafter, aligning with the proposed AIM dual listing timeline.

The funds raised will primarily be allocated to redeem the remaining convertible notes. Additionally, proceeds will be used to settle the outstanding deferred consideration for Pain Away, generating an estimated $1.4 million in annual cost savings. The capital will also support general working capital requirements, including expenses related to the entitlement offer and AIM listing.

Strong growth reflects market demand

Wellnex Life’s revenue more than doubled for the period ending December 2024 compared to the prior corresponding period, reflecting strong market demand and effective execution of its growth strategy.

The proposed dual listing remains contingent on Wellnex Life meeting all regulatory requirements and successfully completing the capital raise.

However, with strong institutional interest from UK-based investors, the company is on track to achieve its listing objectives.

This article was developed in collaboration with Wellnex Life, 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 Wellnex Life secures $9m to propel dual listing on London’s AIM market