Wellnex directors commit to $1.5 million in entitlement offer ahead of London listing

Wellnex directors have committed to subscribe for a minimum $1.5 million of shares in company’s entitlement offer, putting skin in the game ahead of dual London listing.

Wellnex Life directors back entitlement offer ahead of London listing. Pic: Getty Images.

• Wellnex directors commit to subscribe for minimum $1.5 million of shares in entitlement offer

• Company has also received conditional binding commitments of $14.3 million in capital raise

• Wellnex says it has reached estimated capital requirements for proposed London Stock Exchange listing

 

Special Report: Directors are showing their support in the growth prospects of Wellnex Life as it prepares to list on the London Stock Exchange, committing to subscribe for a minimum $1.5 million in shares as part of the company’s current entitlement offer.

Earlier this month,Wellnex Life (ASX:WNX) announced it was 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, which is being managed by Reach Markets, opened on February 17 and closes on February 26.

The entitlement offer is being run alongside a capital raise through lead brokers SP Angel, Orana Capital and Barclay Pearce Capital to reach the company’s estimated minimum capital requirement for a listing on the LSE Alternative Investment Market (AIM).

With conditional binding commitments of $14.3 million at 65c, Wellnex said it had now reached the estimated minimum capital requirement for the dual listing in London, which it is targeting for early March.

The company said shareholders could now not only take up their entitlement, but also subscribe for additional shares.

Wellnex said that the directors have confirmed that they will subscribe for a minimum of $1.5 million worth of shares as part of their entitlement in the offer.

Funds to boost Wellnex’s financial position

Wellnex said the funds raised from the entitlement offer and shortfall would be used to redeem the balance of convertible notes, after any conversions of the convertible notes at the time of AIM admission.

Funds would also be used to pay outstanding deferred consideration for its Pain Away acquisition and general working capital, including the costs related to the entitlement offer and the proposed AIM listing.

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

By clearing all convertible notes and settling the Pain Away payment it expected to save ~$1.4m in annual costs.

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

LSE 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.

In 2022, the company 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 its first purchase order from Haleon for its soft gel liquid paracetamol analgesics for the UK.

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

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 directors commit to $1.5 million in entitlement offer ahead of London listing