Elixinol Wellness has secured $2.5 million in funding after completing a two-tranche placement.
The raise followed a trading halt requested on September 4 pending details of the financing.
The firm had targeted $2m but received the higher figure off the back of “strong support from existing and new investors, including institutional, family office and high net worth participants”.
Shares were priced at $0.0135 each, with a one-for-one free-attaching option exercisable at $0.02 and expiring two years from issue.
Elixinol chief executive Natalie Butler said the “strong response” to the placement demonstrated investor confidence in the brand, and added it would provide working capital to support a “reset strategy”.
“This funding underpins our next phase of execution: cost control, system improvements, SKU rationalisation, and channel optimisation,” she said.
The company also announced the appointment of Gavin Evans as strategic advisor to support its next phase.
Evans is the founder of Openway Food Co and has experience building vertically integrated food businesses.
“With Gavin Evans recently appointed as a strategic advisor, we are well placed to further realign operations for profitable growth,” Butler said.
Elixinol reported a loss after tax of A$3.1 million in the six months to June, up from $2.8m in the previous corresponding period.
Revenue climbed almost 13% to $7.6m.