- Skincare specialist Skin Elements (SKN) is raising $1 million through a five-for-nine entitlement offer
- Shareholders will get one unlisted option for every three shares bought under the offer
- Skin Elements said the fresh funds will be used to expand its Soleo Organics and PapayaActivs range internationally
- The entitlement offer is fully underwritten
- In mid-afternoon trade, Skin Elements shares are down just over 11 per cent and worth 1.6 cents each
Skincare specialist Skin Elements (SKN) is raising $1 million through a five-for-nine entitlement offer to expand its Soleo Organics and PapayaActivs range.
The company is giving eligible shareholders the right to buy up the new shares at one cent each. Each shareholder will also be given one free unlisted option for every three new shares bought under the offer, exercisable at three cents each by the end of December 2021.
Skin Elements plans to issue just over 100 million shares and 33 million options to raise the million dollars.
The company’s Soleo Organics brand is its natural suncare range. Skin Elements claims the Soleo sunscreen products are made of entirely natural and organic ingredients and completely void of synthetic chemicals.
The Soleo range has regulatory approval with the U.S. Food and Drug Administration, the Australian Therapeutic Goods Administration, and other “significant regulators” according to the company.
PapayaActivs is Skin Element’s skincare range. With a papaya-based formula, the product has a range of iterations for use in treating different skin conditions or every-day skincare.
With the fresh funds hitting the company’s balance sheet, Skin Elements said it plans to expand these products to be sold in Australian, European, and American markets.
Titan Securities is acting as lead manager for the entitlement offer. The capital raising is fully underwritten by State Securities.
Skin Elements had shares dip nearly 40 per cent after today’s announcement, but over the course of the trading session has recouped the worst of the losses.
At midday AEDT, Skin Elements shares are down 11.11 per cent and worth 1.6 cents each.