How The Calmer Co. Plans to Turn $1.4M Into Wholesale Growth

Capital Raise Completion

The Calmer Co. International Limited (ASX, CCO), a consumer packaged goods company specialising in natural relaxation and sleep support products, has successfully closed the second tranche of its $1.4 million secured convertible note raise. The second tranche brought in $700,000 in commitments, completing the planned funding round that began earlier in 2025.

This capital injection is set to underpin the company’s expanding wholesale business by supporting inventory build and providing additional working capital. The raise reflects a strategic push to meet growing demand both domestically and internationally, particularly in markets such as the USA, Australia, New Zealand, China, and the Pacific Islands.

Investor Confidence and Terms

Notably, the convertible notes were strongly supported by many of The Calmer Co.’s top 10 shareholders, indicating alignment and confidence in the company’s growth strategy. The notes carry a 10% annual interest rate until 31 July 2026, increasing to 18% thereafter if not converted, with interest paid monthly in cash.

The conversion mechanism is tied to the company’s share price, with a trigger set at a volume-weighted average price (VWAP) of at least $0.004 in the 15 trading days prior to maturity. If this trigger is met, the notes will convert into ordinary shares at $0.003 per share, potentially diluting existing shareholders but providing the company with equity capital rather than debt repayment obligations.

Strategic Implications

CEO and Founder Zane Yoshida highlighted that the funds will enable The Calmer Co. to build inventory to support wholesale growth and continue its path toward profitability. The company’s product portfolio, including kava-based beverages and natural alternatives to alcohol, taps into a growing global trend toward healthier lifestyle choices.

While the raise strengthens the company’s balance sheet in the near term, the ultimate impact on capital structure depends on share price performance and conversion outcomes. The secured nature of the notes, backed by a general security deed over company assets, provides investors with some protection but also signals the company’s commitment to meeting its obligations.

Looking Ahead

With settlement and allotment of the second tranche scheduled for 22 December 2025, The Calmer Co. is well-positioned to capitalize on rising market demand. However, investors will be watching closely for the company’s share price trajectory and execution of its wholesale expansion plans in the coming months.