Wellnex Life announces a capital raise as it forecasts a record Q1 FY23 and seeks to be a major player in over-the-counter medical cannabis products in Australia.

Health and wellness company Wellnex Life (ASX: WNX) is targeting to raise $2 million in a share purchase plan to progress its joint venture with OneLife Botanicals with the goal to be one of the first companies to offer an over-the-counter medical cannabis products in Australia.

The share purchase plan is now open to shareholders at 7.5 cents/share representing a 19.7% discount to 5-day VWAP.

Funds raised will also be used to finance the inventory required for launching new products including Performance Inspired and Pharmacy Own along with continuing to progress further growth avenues such as its e-commerce channel.

On track for record-breaking quarter

WNX is forecasting a record-breaking Q1 FY23 with the company on track to meet its guidance for FY23 of $29 million in revenue.

WNX’s strong start to FY23 has continued in September, with budgeted sales for the month at $2.9 million – representing an increase of 141% compared to prior corresponding period (PCP) of $1.2 million.

Revenue for Q1 FY23 is forecast to be $6.8 million, an increase of 78% compared to PCP of $3.8 million.

In addition, WNX has received significant contract manufacturing purchase orders in September, with total purchase orders outstanding of ~$3 million to be invoiced in the next quarter.

Strong pipeline of brand and product launches

WNX has a strong pipeline of brand and product launches for the remainder of FY23 that will further accelerate revenue and margins including:

WNX Life CEO George Karafotias said he was pleased to report significant momentum in the business, both for existing brands and future launches.

“We are seeking to maintain this momentum with multiple exciting brand and product launches planned over the coming months to propel the company forward and create value for shareholders,” he said.

“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 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.

“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.”

Join an investor briefing

Wellnex Life CEO George Karafotias will be holding an investor briefing on Thursday, 15th September 11am (AEST) where he will discuss the company’s trading update and goal to be one of the first to launch an S3 product in the Australian market. Click here to register.

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.