Australian health and wellness product company Wellnex Life Limited (ASX: WNX), has announced the amount raised under a recent share placement plan and private placement came to a total of $5.965 million.
In July this year, Wellnex formed a joint venture with Melbourne-based medical cannabis firm OneLife Botanicals to bring registered medicinal cannabis and hemp-based products to Australian and international markets. Just the week prior, OneLife had inked an agreement with Canada-headquartered cannabinoid company MediPharm Labs Corp. for the sale of MediPharm Labs Australia.
OneLife completed acquisition of MediPharm Labs Australia early this month.
Through the joint venture, this will enable Wellnex to enter the Special Access Market (SAS), with medical cannabis product to be available by the end of this year says the company. Wellnex says the acquisition will also enable the company to “be one of the first” to secure approval for an over-the-counter cannabidiol-based medicine under Schedule 3 (S3) classification.
While the S3 classification for certain qualifying CBD- based products has been available for quite some time, these medicines are yet to appear on pharmacist’s shelves. Australia’s Therapeutic Goods Administration gave the green light to down-scheduling low-dose CBD in late 2020, and such products have been legally accessible – in theory – since February 1 last year.
But attaining S3 classification is no mean feat, and one that requires a shedload of cash. Hence the SPP and private placement.
“We are overjoyed to have seen such strong support from shareholders for our SPP, particularly amidst challenging market conditions,” said Wellnex CEO George Karafotias last week. “The total funds raised of $5.965 million will enable us to progress on our goal to be one of the first companies to offer an over-the-counter medicinal cannabis product in the Australian market.”
The full $5.965 million won’t just be spent on Wellnex’s CBD ambitions – it will help fund other projects, including a planned launch of medicinal cannabis products under the Special Access Scheme (SAS) at the end of this year.
“We are keenly focused on continuing to generate value for shareholders, with a strong pipeline of brand and product launches in the remainder of FY23 that will further accelerate revenue and margins,” said Mr. Karafotias.