EVE Health Group has launched a $1.5 million capital raise alongside the acquisition of biotech firm Nextract, aiming to expand its footprint in health and pharmaceutical products focused on erectile dysfunction and period pain.
- Placement and SPP offers to raise up to $1.5 million at 3.6 cents per share
- Acquisition of Nextract completed via share issuance to vendors
- Board reshuffle with retirement and new executive director appointment
- Funds earmarked for product testing, regulatory approval, marketing, and working capital
- Risks include regulatory hurdles, funding needs, and integration challenges
Capital Raise and Acquisition Details
EVE Health Group Limited has announced a significant capital raising initiative coupled with the acquisition of Nextract Pty Ltd, an Australian biotech company. The company is offering 27.8 million shares through a placement and up to 13.9 million shares via a share purchase plan (SPP), both priced at 3.6 cents per share, aiming to raise a combined total of $1.5 million. Additionally, 83.3 million shares will be issued to Nextract vendors and 2.3 million shares to the lead manager at a deemed issue price of 3.6 cents each, completing the acquisition transaction.
This move follows shareholder approval obtained in May 2025 and a share consolidation effective from late May, positioning EVE to expand its health and pharmaceutical product offerings.
Strategic Expansion and Product Focus
The acquisition of Nextract complements EVE’s existing Meluka Australia probiotics brand, broadening its portfolio into novel pharmaceutical and nutraceutical delivery systems. The company plans to develop two lead products targeting erectile dysfunction and dysmenorrhea (period pain), with manufacturing outsourced to scale commercial production.
Funds raised will primarily support stability testing, regulatory approval processes with the Therapeutic Goods Administration, marketing efforts, production costs, and general working capital. The company anticipates regulatory approval timelines of approximately three to six months, though no guarantees are provided.
Governance and Board Changes
Completion of the Nextract transaction will bring changes to EVE’s board composition. Director Carlos Jin will retire, and Stuart Gunzburg will join as an executive director, while Damian Wood is expected to be appointed as CEO. The board will then consist of Non-Executive Chair Rodney Hannington, Executive Director Stuart Gunzburg, and Non-Executive Director Bill Fry.
Risks and Market Considerations
While the acquisition and capital raise mark a strategic step forward, EVE acknowledges several risks. These include the need for future capital beyond the current raise, challenges in product development and commercialisation, reliance on key personnel, regulatory approval uncertainties, intellectual property protection, and integration risks between Nextract and Meluka Australia operations.
Market conditions and competition in the health and pharmaceutical sectors also pose risks to the company’s growth trajectory. Investors should weigh these factors carefully against the potential for EVE to establish a diversified health platform.
Capital Structure Impact
Post-offer, EVE’s total shares on issue will increase from approximately 131.9 million to 259.2 million, reflecting the substantial share issuance related to the acquisition and capital raising. The offer is not underwritten and is not contingent on further shareholder approval, signaling confidence in the transaction’s completion.
Bottom Line?
EVE’s bold acquisition and capital raise set the stage for growth, but regulatory and integration hurdles will test its execution.
Questions in the middle?
- Will EVE secure timely regulatory approval for its lead Nextract products?
- How effectively will EVE integrate Nextract’s operations with its existing Meluka Australia business?
- What are the prospects for future funding if initial commercialisation faces delays?