Wellnex Life Advances Dual Listing on London Stock Exchange
WELLNEX LIFE LIMITED (WNX) Share Update July 2024 Tuesday 23rd
Wellnex Life Completes A$2 Million Placement for LSE Dual Listing
Wellnex Life Limited (ASX:WNX) has successfully raised A$2 million through a placement with UK investors, marking a significant step towards its dual listing on the London Stock Exchange (LSE).
Instant Summary:
- A$2 million raised via placement with UK investors.
- 73,781,290 fully paid ordinary shares issued at A$0.028 per share.
- Funds to retire outstanding debts and provide working capital.
- Dual listing on LSE expected to enhance investor pool and liquidity.
- Placement co-led by Barclay Pearce Capital and Orana Capital.
Placement Details
Wellnex Life Limited (ASX:WNX) has announced the successful completion of a placement, raising approximately A$2 million. The placement involved UK-based brokers and high net worth investors, resulting in the issuance of 73,781,290 fully paid ordinary shares at an effective price of A$0.028 per share.
The funds raised will be utilized to retire all outstanding debts, saving the company A$1.4 million annually in interest and associated costs. Additionally, the capital will provide working capital to support Wellnex Life's international expansion efforts.
Dual Listing on LSE
Wellnex Life is well advanced in its plans for a dual listing on the Main Board of the London Stock Exchange (LSE). The LSE is a major international exchange, home to some of the world's largest consumer healthcare companies. The dual listing is expected to expand Wellnex Life's investor pool, enhance liquidity, and achieve a higher valuation.
The company, along with its corporate advisors, is in the detailed preparation phase of the required documentation, including the prospectus, for the LSE listing. A notice of meeting will soon be dispatched to all shareholders to approve the capital raising for the LSE listing.
CEO's Statement
George Karafotias, CEO of Wellnex Life, expressed confidence in the company's direction, stating, 'The strong support demonstrated from UK investors in the completed placement validates the direction that the company is headed. The progress made, as well as the interest generated by the proposed dual listing on the Main Board of the London Stock Exchange, has given the company confidence that it is on the right path forward.'
The company expects to issue the shares pursuant to the placement on 26 July 2024, using its existing placement capacity under ASX Listing Rules.
The successful placement and the upcoming dual listing on the LSE are likely to have a positive impact on Wellnex Life's stock. The additional funds will strengthen the company's balance sheet by retiring debt and providing working capital for international expansion. The dual listing is expected to attract a broader investor base and increase liquidity, potentially leading to a higher valuation for the company.
Investor Reaction:
Investors and analysts have shown strong support for Wellnex Life's strategic move towards a dual listing on the LSE. The successful placement with UK investors is seen as a validation of the company's growth prospects and strategic direction.
Conclusion:
Wellnex Life's successful A$2 million placement and its advanced plans for a dual listing on the LSE mark significant milestones for the company. Investors should keep an eye on the upcoming shareholder meeting and the finalization of the LSE listing. This strategic move is expected to enhance the company's financial position and growth potential.