Elixinol Raises $2.5 Million Through Well-Supported Placement

Highlights:

• Elixinol Wellness Ltd (ASX: EXL) successfully raised $2.5m, surpassing its $2m target, through a two-tranche placement supported by institutional and high-net-worth investors.
• Funds will be used to strengthen working capital, expand inventory, and streamline operations, with a focus on profitability and higher-margin sales channels.
• The company confirmed the appointment of Gavin Evans as Strategic Advisor, a move aimed at strengthening its transformation efforts and reset plan.

Successful Funding Round

Elixinol Wellness Ltd (ASX: EXL) has secured $2.5 million before costs through a two-tranche placement to professional and sophisticated investors. At the time of writing, the company confirmed that the raise exceeded its initial $2 million target, highlighting strong backing from both existing shareholders and new participants, including institutional, family office, and high-net-worth investors. The placement was priced at $0.0135 per share and included a one-for-one free attaching option exercisable at $0.02, with a two-year expiry. A total of 185,185,185 new ordinary shares and an equal number of options will be issued under the offer.

Use of Proceeds

Funds raised will be directed toward strengthening working capital, expanding inventory, and streamlining operations. Elixinol plans to simplify its product portfolio through SKU rationalisation, pivot towards higher-margin sales channels, and focus on achieving long-term profitability.

CEO Natalie Butler noted that the strong investor response reflects confidence in Elixinol’s brands and its reset strategy. She emphasized that the funding will support tighter cost controls, system improvements, and a sharper focus on profitable growth.

Strategic Advisory Appointment

Along with the capital raise, Elixinol named Gavin Evans as its new Strategic Advisor. With extensive experience in building vertically integrated food businesses, Evans will assist the company in executing its transformation and realigning operations following recent acquisitions.

Placement Details

By September 12, 2025, Tranche 1 is anticipated to be settled using Elixinol’s placement capacity under ASX Listing Rules 7.1 and 7.1A. Tranche 2, covering 138,385,185 shares and all attaching options, will require shareholder approval at an upcoming extraordinary general meeting (EGM). Acting as lead manager, Peak Asset Management will earn a 6% fee based on the overall funds secured.

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