Former nutritional dairy Company, Wattle Health is a step closer to relisting on the ASX after an overwhelming majority of shareholders approved a plan to rebrand as Wellnex Life.

More than 95% of investors voted in favour of the company moving into health and wellness by acquiring Brand Solutions Australia (BSA) and branding under the new name at the business’ Annual General Meeting on Friday, 21 May.

Wattle Health is now working with the ASX for approval to re-quote its securities with a name change and new stock ticker, with an anticipated date for re-quotation on Wednesday, 16 June 2021.

The acquisition of BSA will give Wattle Health existing annualised revenues of around $20 million and an existing base of brands and products, as well as the team and resources required to develop, market, and distribute products throughout Australia.

Wattle Health managing director George Karafotias – who was elected to the board during the AGM – said the company has “a bright future ahead”.

“Wattle Health [is] to be known as Wellnex Life and is positioned to take advantage of the growing health and wellness sector with the acquisition of BSA, a well-established business, and future confirmed growth plans,” he said.

Mr Karafotias thanked shareholders for their patience as the business readies itself for its ASX return.

BSA acquisition bolsters product base

BSA was established in 2010 and has since grown to represent over 15 brands within the health and wellness sector, and last year booked roughly $14.5 million in sales. 

Mr Karafotias said BSA’s existing R&D and retail distribution networks will support Wattle Health to continue creating, marketing and selling innovative health and wellness products both in Australia and abroad.

“Another great outcome of this is welcoming BSA founder and managing director, Zack Bozinovski, as executive director and chief strategy officer,” Mr Karafotias added. 

“Zack has previously held senior executive roles with numerous leading Australian businesses such as Uncle Toby’s, Goodman Fielder, PepsiCo and Sigma Pharmaceuticals.”

Wattle progresses with capital raise

With the acquisition of BSA approved by shareholders and funding already available to complete the transaction, Wattle Health is currently raising additional funds to use as working capital as it furthers its growth plans.

The company is currently seeking to raise $2.88 million through a non-renounceable rights issue, ending 7 June.

Under the offer, eligible shareholders can subscribe for one share per twelve held on the record date (18 May) at 15 cents each.

Up to 19,220,786 shares will be issued.

To stay up to date with the latest company news and announcements, register your details on their investor centre.

Reach Markets have been engaged to assist WHA with investor communications. As the advisers assisting with the management of their rights issue, Reach Markets may receive fees depending on whether the Offer is taken up by investors.

Reach Markets have been engaged by Wellnex Life to help manage their investor communications.

Wellnex Life is the proposed new name change for Wattle Health Australia Limited (subject to shareholder approval)

Sources:

• ASX Announcements: Results of Annual General Meeting
• Wattle AGM: Director’s Address
• ASX Announcement: Wattle Health Announces Acquisition of Brand Solutions Australia
• ASX Announcement: Wattle Health Rights Issue Open
• ASX Announcement: Wattle Health Launches Rights Issue