- Wellfully (WFL) is raising up to $2.3 million for scale initiatives
- The company plans to decrease manufacturing costs and increase gross margins
- Wellfully has also launched a debt restructuring, including the conversion of outstanding remuneration to shares
- An outstanding Celtic Capital loan will also be converted to shares
- Wellfully shares are trading down more than four per cent at 2.2 cents at 3:35 pm AEDT
Science-based health and beauty company Wellfully (WFL) has reached the pivotal point where it’s time to increase business scale, according to CEO Paul Peros.
To support planned growth initiatives, Wellfully has announced a capital raising of up to $2.3 million with 2.2-cent shares.
“With the closing of the financial year 2022, we’ve completed the transformation from a pure research and development outfit to a fully-integrated science-based wellness company,” Mr Peros said.
“As a matter of fact, over the past two years, we have grown our revenues from our own brands and products five-fold.
“This capital will permit us to scale commercial activities across both Swisswell in wellness and health and Reduit in beauty.
“I think we’re reaching a really important tipping point as far as scaling is concerned, and it is important that we also secure the resources we need to do that.”
Mr Peros said the raising would support working capital, marketing and distribution network development.
The funds raised would also fund insourcing of the patch production at Wellfully’s Swiss operations facility to decrease the costs of Swisswell Lubricen Knee Patch from $2.39 to 80 cents, increase gross margins to 84 per cent, and improve production capacity.
Mr Peros said Wellfully was determined to double its distribution outlets.
“We are in more than 20 international markets already,” he said.
“We will continue to focus on where we will be able to scale — we’re talking about larger markets such as the United States, Europe, Brazil, Russia and China.”
The company also announced a debt restructuring, which includes nearly $90,000 of outstanding pay due to Mr Peros being settled with 2.19-cent shares.
A loan of $200,000 with Celtic Capital will be converted into 10,101,000 shares, which is equivalent to 1.98-cent shares. CPS Capital Group is the lead manager to the raising.
“This capital raising will provide WFL with a renewed foundation to pursue its growth objectives and also significantly decreases the company’s liabilities in a cash effective manner,” Mr Peros said.
Wellfully sells scientifically invented, developed and tested health and beauty brands, Swisswell and Reduit, with products including pain relief patches and magnetic technologies that influence the delivery of active ingredients through the skin.
Wellfully shares were trading down more than four per cent at 2.2 cents at 3:35 pm AEDT.