Wellnex Life (ASX: WNX) has received initial conditional binding commitments of $9 million to cornerstone a raise for the proposed dual listing on AIM.
After receiving significant interest form UK based institutions and sophisticated investors, Wellnex Life has launched a 1:1 non-renounceable entitlement offer, with the shortfall from the entitlement offer to be used for the completion of the placement for the proposed AIM dual listing and conversion of the convertible notes. The entitlement offer is not conditional on the completion of the AIM listing.
The company’s lead brokers will continue the marketing and book building processes for the placement until the entitlement offer which closes on 26 February 2025, with the issue of ordinary shares from the placement and conversion of the convertible notes to be placed soon after to coincide with the proposed AIM dual listing.
Funds raised under the entitlement offer and placement will be used to redeem the balance of convertible notes (after any conversions of the convertible notes at AIM admission), pay the outstanding deferred consideration for recent purchase Pain Away and fund general working capital, including the costs related to the Entitlement Offer and the proposed AIM listing.
The company says it will continue to pursue an accelerated launch of its company brands in the UK and other identified European markets and pursue additional distribution of it liquid softgel range with its current and identified new partners.
“Wellnex Life would like to thank the lead brokers for securing $9 million in initial binding commitments for the proposed AIM dual listing,” George Karafotias, CEO and Joint Managing Director of Wellnex Life, said.
“Recapitalisating the balance sheet by the settlement of the outstanding deferred consideration for Pain Away and the elimination of the convertible notes will save the company $1.4 million annually and will also provide a strong platform for revenue growth in domestic and international markets. This is a pivotal and transformative period for the company that we expect will enhance both company and shareholder value.”
