RLG Ltd Secures $900K to Accelerate Health and Wellness Expansion
RLG Ltd has successfully raised $900,000 through a two-tranche placement to fund the development of its food and health products and expand global sales channels. The second tranche, involving options issuance, awaits shareholder approval.
- Placement raised $900,000 via 225 million shares at $0.004 each
- Investors receive one free option per two shares, exercisable at $0.01
- Funds earmarked for development of RLG’s food, health, and wellness products
- First tranche shares issued under ASX Listing Rules 7.1 and 7.1A
- Second tranche options subject to shareholder approval in March 2025
Capital Raising Completed
RLG Ltd (ASX: RLG), an e-commerce company focused on health and wellness products, has successfully closed a capital raising round, securing $900,000 before costs. The placement involved issuing 225 million new fully paid ordinary shares at a price of $0.004 per share, accompanied by one free attaching listed option for every two shares issued. Each option carries an exercise price of $0.01 and expires on 26 September 2025.
The placement was executed in two tranches due to strong investor demand. The first tranche, comprising approximately 225 million shares, was completed using the company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A. The second tranche involves the issuance of 112.5 million options, which requires shareholder approval expected at a general meeting in March 2025.
Strategic Use of Funds
The capital raised will be strategically deployed to accelerate the development and production of RLG’s proprietary food, health, and wellness products. This includes the expansion of the company’s flagship brand, VORA, alongside other key brands within its portfolio. RLG aims to leverage these funds to launch and market new stores and sales channels globally, targeting high-margin, high-demand products.
This move aligns with RLG’s broader growth strategy to deepen its footprint in both online and offline retail environments, particularly in markets such as Australia and China, where the company already maintains a presence through various e-commerce platforms and retail partnerships.
Placement Management and Fees
Spark Plus acted as the lead manager and corporate advisor for the placement, taking a strategic position in RLG with a $200,000 investment. As part of the placement fees, Spark Plus will receive 11 million options, which are included in the tranche two options pending shareholder approval, alongside a 6% fee on the placement amount.
All shares issued under the placement rank equally with existing ordinary shares, maintaining shareholder equity balance. The company’s board, led by Managing Director Bryan Carr, has authorised the announcement and is actively engaging with shareholders ahead of the upcoming meeting.
Looking Ahead
With the first tranche completed, RLG is positioned to accelerate its product development and market expansion plans immediately. However, the full impact of the capital raising hinges on shareholder approval of the second tranche options. This approval will unlock additional capital and incentivise key stakeholders, including the lead manager, to support RLG’s growth trajectory.
Investors and market watchers will be keenly observing the March shareholder meeting, which will be a pivotal moment for RLG’s capital structure and strategic outlook.
Bottom Line?
RLG’s successful raise sets the stage for accelerated growth, but shareholder approval remains the key hurdle ahead.
Questions in the middle?
- Will shareholders approve the tranche two options at the upcoming meeting?
- How quickly can RLG scale production and distribution of its VORA brand globally?
- What impact will the new capital have on RLG’s competitive positioning in health and wellness e-commerce?
