Skin Elements Faces Funding Runway Challenge Amid Product Rollout Plans
Skin Elements Limited advances its natural biotechnology products with ECO-Nurture trials concluding and SuprCuvr disinfectant gaining traction, supported by a successful $656k capital raise.
- ECO-Nurture bio stimulant trials on New Zealand kiwifruit orchards near completion
- SuprCuvr disinfectant in active use on Melbourne train carriages during evaluation
- Oversubscribed rights issue raises $656k, validating commercial plans
- Packaging and formulation review underway for Soléo Organics sunscreen UK distribution
- Operational cash outflows of $299k with $249k cash on hand and $369k financing available
Progressing Natural Biotechnology Products
Australian natural biotechnology company Skin Elements Limited (ASX: SKN) has reported significant progress in its quarterly activity report for the period ending 31 March 2025. The company is advancing multiple proprietary plant-based formulations developed from its SE Formula biotechnology platform, moving closer to commercialisation across several product lines.
Skin Elements’ ECO-Nurture, a sustainable horticultural bio stimulant designed as an alternative to chemical sprays, is nearing the end of its three-year trial phase on kiwifruit orchards in New Zealand. The trials are conducted under Zespri’s Crop Protection Standards, with Zespri being the world’s largest kiwifruit marketer. Subject to successful outcomes, the company plans a commercial rollout in the second half of 2025, with ambitions to expand ECO-Nurture’s application to other crops such as grapes, apples, and pears.
SuprCuvr Disinfectant Gains Real-World Traction
The SuprCuvr disinfectant, a TGA-registered hospital-grade product made entirely from plant-based ingredients, continues its evaluation as a 3-in-1 cleaner and disinfectant. Notably, it is currently in use on train carriages in Melbourne, representing a meaningful pilot in a large-scale public transport setting. This deployment underscores the product’s potential to replace chemical-based disinfectants in sectors including food manufacturing, hospitality, and healthcare.
Commercialisation and Funding Milestones
Skin Elements is also progressing its Soléo Organics sunscreen range, an award-winning natural and organic formulation. The company is reviewing packaging and formulation in preparation for a large-scale white label distribution opportunity within the UK retail pharmacy sector. Additionally, development of a premium SPF50 sunscreen for the domestic Australian market is underway.
Financially, the company successfully completed an oversubscribed non-renounceable rights issue, raising $656,000, including $143,000 in oversubscriptions. This capital injection provides validation of Skin Elements’ product development and commercialisation strategy. The company also received a $133,000 advance on its R&D rebate, reflecting ongoing investment in its biotechnology research.
Cash Flow and Operational Outlook
Operational cash outflows for the quarter totaled $299,000, driven by expenditures in manufacturing, staff, research and development, marketing, and corporate costs. At quarter-end, Skin Elements held $249,000 in cash and had $369,000 in unused financing facilities, providing approximately two quarters of funding at the current burn rate. The company continues to manage its cash flow prudently as it advances through its three-phase product development process.
Executive Chairman Peter Malone highlighted the quarter’s achievements, noting the progression of core formulas into Phase 3, which involves distribution negotiations and scaling production. He emphasized the significance of the rights issue as a strong endorsement from shareholders and expressed confidence in bringing large-scale commercial opportunities to fruition.
Bottom Line?
Skin Elements’ upcoming commercial rollouts and distribution deals will be critical tests of its growth potential and financial sustainability.
Questions in the middle?
- Will ECO-Nurture secure regulatory approvals and market adoption beyond kiwifruit to other crops?
- Can SuprCuvr expand its footprint beyond Melbourne’s public transport to other large-scale sectors?
- What are the timelines and terms for Soléo Organics’ UK white label distribution agreements?