The Calmer Co. has secured $700,000 in the first tranche of a $1.4 million convertible note raise, welcoming US distributor Applied Food Sciences as a strategic investor to fuel its expanding wholesale presence.
- Secured $700,000 in first tranche of $1.4 million convertible note raise
- Funds earmarked for inventory build and working capital
- Applied Food Sciences joins as strategic US investor
- 21% revenue growth over two months post-US product launch
- Annualised revenue run rate now exceeds $10 million
Capital Raise to Support Growth
The Calmer Co. International Limited (ASX, CCO), a company specialising in natural relaxation and sleep support products, has announced a $1.4 million convertible note raise, with $700,000 secured in the first tranche. This capital injection is designed to fund inventory expansion and general working capital needs, underpinning the company’s ongoing growth across international markets.
The raise comes on the back of a successful US market entry in July 2025, where new product launches have driven a notable 21% increase in monthly revenue over July and August. The company now operates at an annualised revenue run rate exceeding $10 million, signalling strong momentum in its core segments.
Strategic Partnership with Applied Food Sciences
A key highlight of the raise is the participation of Applied Food Sciences, Inc. (AFS), a Texas-based leader in ethically sourced functional ingredients. AFS has committed $100,000 in the first tranche, marking a renewed strategic investment that aligns with The Calmer Co.’s push into the US wholesale channel. This partnership is expected to enhance distribution capabilities and accelerate access to the growing nutraceutical market.
The Calmer Co. is also actively pursuing partnerships with high-quality distributors such as Network Nutrition, a subsidiary of IMCD, to further strengthen its global wholesale footprint. CEO Zane Yoshida emphasised that the convertible note structure offers an optimal funding solution at this stage, balancing growth ambitions with capital efficiency.
Convertible Note Terms and Outlook
The convertible notes carry a 10% annual interest rate until July 31, 2026, increasing to 18% if not converted by that date. Conversion into shares is contingent on the company’s share price reaching a specified threshold, with repayment in cash if conversion conditions are unmet by December 31, 2026. The second tranche of $700,000 is subject to shareholder approval at the upcoming AGM, with priority offered to first tranche investors.
This capital strategy reflects confidence from existing top shareholders, who have largely subscribed to the notes, and underscores a clear path to profitability supported by declining corporate costs. The company’s focus on expanding its natural product range, including brands like Fiji Kava, Taki Mai, and Danodan Hempworks, positions it well within the fast-growing global market for healthier alcohol alternatives and sleep aids.
Bottom Line?
With strategic backing and solid revenue growth, The Calmer Co. is poised for a pivotal expansion phase; pending shareholder approval and market conditions.
Questions in the middle?
- Will the second tranche of the convertible note raise secure shareholder approval at the AGM?
- How will Applied Food Sciences’ involvement influence The Calmer Co.’s US wholesale expansion?
- Can The Calmer Co. sustain its revenue growth momentum and achieve profitability as planned?