- Wellfully (WFL) raises up to $2.3 million for large-scale initiatives
- Company plans to reduce manufacturing costs and increase gross margins
- Wellfully also initiated a debt restructuring, including the conversion of compensation due into shares
- An outstanding loan from Celtic Capital will also be converted into shares
- Wellfully shares are trading down more than 4% at 2.2 cents at 3:35 p.m. AEDT
Science-based health and beauty company Wellfully (WFL) has reached the tipping point where it’s time to increase the scale of its business, according to CEO Paul Peros.
To support planned growth initiatives, Wellfully announced a fundraising of up to $2.3 million with shares at 2.2 cents.
“With the close of fiscal 2022, we have completed the transformation from a pure research and development team into a fully integrated, science-based wellness company,” said Peros.
“In fact, over the past two years, we have quintupled revenue from our own brands and products.
“This capital will allow us to expand the business activities of both Swisswell in the field of well-being and health and Reduit in the field of beauty.
“I think we’re reaching a very important tipping point when it comes to scaling, and it’s important that we also get the resources we need to do that.”
Mr. Peros said the raise will support the development of working capital, marketing and the distribution network.
Funds raised would also fund the insourcing of patch production to Wellfully’s Swiss operating facilities to reduce Swisswell Lubricen Knee Patch costs from $2.39 to 80 cents, increase gross margins to 84% and improve production capacity.
Mr. Peros said Wellfully was determined to double its distribution points.
“We are already present in more than 20 international markets,” he said.
“We will continue to focus on areas where we can grow – we’re talking about larger markets such as the US, Europe, Brazil, Russia and China.”
The company also announced a debt restructuring, which includes nearly $90,000 in unpaid wages due to Mr. Peros settling with shares at 2.19 cents.
A $200,000 loan from Celtic Capital will be converted into 10,101,000 shares, which equals shares at 1.98 cents. CPS Capital Group is the lead fundraiser.
“This fundraising will provide WFL with a renewed foundation to pursue its growth objectives and will also significantly reduce the company’s liabilities in a cash efficient 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 release of active ingredients through the skin.
Shares of Wellfully were trading down more than 4% at 2.2 cents at 3:35 p.m. AEDT.