Wellnex Life Raises A$9M at $0.65 Per Share Ahead of AIM Listing
Wellnex Life Limited has locked in A$9 million in conditional commitments to support its proposed dual listing on the London Stock Exchange’s AIM market, alongside launching a 1:1 entitlement offer for existing shareholders.
- A$9 million in conditional binding commitments secured at $0.65 per share
- 1:1 non-renounceable entitlement offer launched for existing shareholders
- Funds to redeem convertible notes, settle Pain Away deferred payments, and support working capital
- Proposed AIM dual listing subject to regulatory approvals and capital raise completion
- Revenue growth of 112% in H1 FY25, driven by brand and IP licensing expansion
Capital Raise and Dual Listing Ambitions
Wellnex Life Limited (ASX: WNX) has taken a significant step towards expanding its international footprint by securing A$9 million in conditional binding commitments to cornerstone its proposed dual listing on the AIM market of the London Stock Exchange. The raise is priced at $0.65 per ordinary share and is being managed by lead brokers SP Angel, Orana Capital, and Barclay Pearce Capital.
Complementing this placement, Wellnex Life has launched a 1:1 non-renounceable entitlement offer, ensuring existing shareholders have the opportunity to subscribe for shares at the same price. This offer is not contingent on the AIM listing’s completion, reflecting the company’s commitment to strengthening its capital base regardless of the listing outcome.
Strategic Use of Funds
The proceeds from the entitlement offer and placement will be strategically deployed to redeem the balance of convertible notes, after accounting for any conversions at AIM admission, and to settle the outstanding deferred consideration owed to vendors of the Pain Away business. This settlement is expected to save Wellnex Life approximately A$1.4 million annually in costs, a meaningful reduction that should improve the company’s financial flexibility.
Additionally, funds will support general working capital needs and cover expenses related to the entitlement offer and the proposed AIM listing. This financial restructuring aims to provide a cleaner balance sheet and a stronger platform for growth both domestically and internationally.
Growth Momentum and Market Expansion
Wellnex Life’s recent performance underscores its growth trajectory, with revenues rising over 112% in the first half of FY25 compared to the prior corresponding period. This growth is driven by a 182% increase in revenue from its own brands, including Wakey Wakey and Nighty Night, and a 64% uplift in IP licensing income, notably through its partnership with global pharmaceutical company Haleon.
The company has already delivered its first product for the UK market under the extended Haleon arrangement, signaling the beginning of its accelerated launch strategy in the UK and other European markets. Wellnex Life is also pursuing expanded distribution of its liquid softgel range with existing and new partners, aiming to capitalize on growing consumer healthcare demand.
Regulatory and Market Considerations
While the capital raise and entitlement offer progress well, the proposed AIM dual listing remains subject to regulatory approvals and the successful completion of the capital raise. The company has been transparent that admission to AIM is not guaranteed, underscoring the inherent risks in cross-border listings.
CEO George Karafotias highlighted the transformative nature of this phase for Wellnex Life, emphasizing the anticipated cost savings and enhanced growth platform. The company’s strategic moves reflect a broader ambition to elevate shareholder value through international market access and operational efficiencies.
Bottom Line?
Wellnex Life’s capital restructuring and AIM dual listing bid mark a pivotal moment, but regulatory hurdles and market reception will shape the next phase.
Questions in the middle?
- Will Wellnex Life complete the AIM dual listing and meet all regulatory requirements?
- How will the market respond to the entitlement offer and the placement pricing?
- What impact will the elimination of convertible notes and Pain Away deferred payments have on future profitability?
