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Wattle Health announces rights issue as it progresses to relisting

May 19, 2021

Wattle Health announces rights issue as it progresses to relisting

Wattle Health is looking to raise $2.88 million through a non-renounceable rights issue as it furthers its proposed transformation into Wellnex Life.

Wattle Health is looking to raise $2.88 million through a non-renounceable rights issue as it furthers its proposed transformation into Wellnex Life.

Under the terms of the offer, eligible existing shareholders are entitled to subscribe for one new share per 12 held on 18 May.

The money will be raised through the issue of up to 19,220,786 shares at a price of $0.15 each 

The Rights Issue will allow all shareholders to acquire new shares at the same prices as the Brand Solutions Australia transaction and the previous institutional placement, while also allowing the “cleansing” of the previous issue of shares which is required for re-quotation. 

This money will be used to further accelerate the growth of BSA, which has already seen a growth in sales of circa 180% over the last 3 financial years. The cash component of the proposed Brand Solutions Australia (BSA) acquisition, pending shareholder approval at its annual general meeting on 21 May, will be funded through existing reserves.

Wattle Health announced its takeover of BSA in mid-April as part of a broad set of changes designed to push the business beyond its original infant milk formula focus and into the broader health and wellbeing market.

The company’s board will also seek to rebrand the business under the Wellnex Life name at the AGM, to better reflect the business’ proposed new direction.

BSA was founded by Zack Bozinovski in 2010 to focus on the development, brokerage and distribution of a number of health and wellbeing products.

The business currently owns and represents 15 brands in the space and has a nationwide distribution network which includes franchise pharmacy chain Chemist Warehouse and Australian Pharmaceutical Industries (API).

BSA saw $14.5 million in sales in the 2020 fiscal year. In a note to investors, Wattle Health said the acquisition will expand the business’ product range, provide access to more efficient manufacturing and distribution, and add “significant” research and development capacity.

Wattle Health agreed to acquire BSA for $4.75 million in cash and scrip in a deal which would see Mr Bozinovski also join the newly-formed Wellnex Life’s board of directors.

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:

 


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