Nuchev's acquisition and entitlement offer announcement

Nuchev Limited (ASX: $NUC) has revealed its agreement to acquire 100% of the shares in bWellness Pty Ltd (bWellness) for $7.0 million, with a combination of cash and scrip. The acquisition aligns with Nuchev's growth strategy, doubling prior year revenue for FY23, adding new sales channels and approximately 200 new complementary health and wellness products to the Group's brand portfolio. Additionally, the company has announced a non-renounceable entitlement offer to raise $5.1 million, receiving strong support from existing shareholders.

Executive commentary on the acquisition and entitlement offer

The acquisition of bWellness is a compelling deal for Nuchev and is in line with our growth strategy. bWellness' product set is aligned with our existing purpose and growth focus, bringing a new sales channel in the large and growing complementary medicines sector. The acquisition will deliver increased scale, diversification and importantly, improves Nuchev's operating cashflows. In addition, there are exciting opportunities to leverage our existing retail and distribution capabilities as we expand our combined business.

Summary of Nuchev's announcement and outlook

Nuchev's acquisition of bWellness for $7.0 million and the non-renounceable entitlement offer to raise $5.1 million demonstrate the company's commitment to its growth strategy and diversification. The acquisition is expected to double prior year revenue for FY23, add new sales channels, and approximately 200 new complementary health and wellness products to the Group's brand portfolio. The company anticipates improved future operating cashflows and aims to leverage its existing sales channels, organisational structure, supply chain, marketing, and finance functions. With strong shareholder support, Nuchev is poised to enhance its position in the market and continue its growth trajectory.