ASX-listed Wellnex Life is aiming to generate A$2 million from investors as it progresses plans to launch an over-the-counter CBD product.
The capital raise will see the company offer shares at $0.075 per share, a 19.7% discount to Wellnex’s five-day, volume-weighted average price.
The funds will go towards a range of growth opportunities, key of which will be its plan to enter the over-the-counter, low-dose CBD market.
Under a joint venture with OneLife Botanicals, Wellnex said its goal is to become “one of the first companies to offer an over-the-counter medical cannabis product in Australia”.
“This capital raise comes at an important inflection point for the business where we are presented with multiple growth opportunities, the largest of which [is] likely related to our chance to be one of the first companies to offer an over-the-counter medical cannabis product in the Australian S3 market,” chief executive George Karafotias said.
“Our JV with OneLife Botanicals, combined with our key competencies around regulatory know-how and distribution networks, provide us with all the ingredients required to evolve as a major player in this large and fast-growing market.”
The share purchase plan will close on October 5.
IDT Australia has announced the resignation of Dr David Sparling after four-and-a-half years at the helm, effective immediately.
Sparling will be replaced on an interim basis by Paul McDonald, who has been the firm’s head of quality and development since January 2021, while a permanent replacement is sought.