Wellnex Life, a company listed on the ASX, has successfully secured $14.3 million in funding for its upcoming dual listing on the London Stock Exchange’s Alternative Investment Market (AIM). The funds were raised through conditional binding commitments from UK and Australian institutions and sophisticated investors. This move is expected to provide increased exposure and credibility to Wellnex as it expands its brands into the European market.
The capital commitments received by Wellnex are contingent on the completion of the listing process. The company anticipates that the dual listing will not only meet the necessary minimum amount but also result in significant cost savings. By eliminating approximately $12.8 million in debt, Wellnex forecasts savings of $1.4 million.
For Wellnex, the dual listing on the LSE represents a significant milestone in its corporate history. The company views this development as a strategic opportunity to access a broader pool of capital and engage with investors who possess a profound understanding of consumer healthcare businesses. Wellnex aims to leverage this listing to fortify its financial position and capitalize on the growing market demand both domestically and internationally.
In addition to funding the dual listing, Wellnex plans to allocate proceeds from the capital raise towards settling an outstanding deferred consideration related to the acquisition of Pain Away, a prominent Australian topical pain relief brand. Since the acquisition in December 2023, Pain Away has been a transformative addition to Wellnex, achieving record revenues exceeding $3 million in the final months of 2024.
The Pain Away product range, comprising 25 different joint and muscle pain relief solutions, is distributed nationally through over 6,000 pharmacy and grocery outlets. The success of Pain Away has further underscored the strategic value of the acquisition and its positive impact on Wellnex’s financial performance.
Despite the optimism surrounding the dual listing and the acquisition of Pain Away, Wellnex is cognizant of the regulatory requirements that must be met for the AIM listing to proceed successfully. The company’s ability to fulfill these conditions will be crucial in ensuring a seamless transition to the LSE.
Looking ahead, Wellnex is poised to capitalize on the opportunities presented by its dual listing on the London Stock Exchange. By tapping into a wider investor base and enhancing its market visibility, the company is well-positioned to drive growth and innovation in the consumer healthcare sector. The upcoming listing on the LSE marks a significant chapter in Wellnex’s journey towards achieving its strategic objectives and expanding its presence in key markets.
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