Wellnex to get Pain Away for lower upfront cost en route to London Listing

Wellnex Life has unveiled ambitious plans, aiming to secure a minimum of $12 million in fresh capital. This capital infusion is strategically earmarked to facilitate a more favorable acquisition of Pain Away, alongside preparations for an exciting London Stock Exchange (LSE) debut in 2024.

The latest announcement reveals a significant adjustment in the payment terms for the acquisition of Pain Away. Initially set at $19.8 million when disclosed in May, the acquisition price has now been reduced to $12.8 million, with an additional inventory component of $1.15 million after an initial deposit of $2.2 million was paid.

There will be a deferred payment for the acquisition that involves two installments of $2.9 million each, payable 12 and 18 months after the completion, which is scheduled for October 20, 2023. Furthermore, as part of this transaction, Wellnex Life (ASX:WNX) will issue 20 million fully paid ordinary shares, priced at $0.05, which will remain under escrow until May 2024.

Barclay Pearce Capital (BPC) is spearheading the capital-raising efforts in Australia and is at the helm of the LSE listing process for Wellnex. The company is currently engaged in a due diligence phase to secure a mandate with a UK nominated advisor (NOMAD), a pivotal step toward launching the LSE IPO process.

A Healthy Boost

The acquisition of Pain Away represents a significant leap forward for Wellnex, instantly enhancing its presence in the healthcare sector. This strategic move not only bolsters the company’s competitive standing in Australia but also extends its reach into major international markets.

Wellnex, known for its established wellness brands, including Mr. Bright, Pharmacy Own, and Wagner Health, has solidified supply agreements with global giants such as Haleon. Haleon, recognized for household brands like Panadol, Sensodyne, Voltaren, Centrum, and Advil, further amplifies Wellnex’s market presence. Additionally, Wellnex boasts an extensive distribution network in the European market, with its products gracing the shelves of popular chains such as Superdrug and Boots.

Pain Away has been a stalwart in the Australian market for the past 24 years. As the largest Australian-owned topical pain relief brand and the second-largest provider of such products in the country, Pain Away’s range, spanning creams, sprays, patches, and tablets, is available across a network of over 6,000 pharmacies in Australia. This includes prominent pharmacy chains like Chemist Warehouse, Priceline, and Amcal, as well as major supermarkets.

In the financial year 2023, Pain Away generated an impressive revenue of $13.7 million, which is expected to grow to $15.8 million in FY24.

London Calling

Wellnex has been on a remarkable growth trajectory, achieving $28 million in sales for FY23, marking a substantial 51% increase compared to the previous year.

In tandem with its global supply agreements, the company is poised to expand its international footprint, primarily through the imminent launch of its proprietary brands such as Wakey Wakey, Nighty Night, The Iron Company, Mr. Bright, and Pain Away. The company is also actively pursuing collaborations with leading pharmaceutical firms, including Haleon, to further bolster its market presence.

The company’s expansion strategy has attracted an offer to list Wellnex on the London Stock Exchange in 2024. This exciting opportunity is being spearheaded by Barclay Pearce Capital, and Wellnex is currently in the due diligence phase as it works towards securing a binding mandate with a UK NOMAD to initiate the LSE IPO process. The listing on one of the world’s largest stock exchanges is tentatively slated for the first half of 2024.

This article was developed in collaboration with Wellnex Life, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.