Elixinol Wellness Ltd's Acquisition of The Healthy Chef & Capital Raise

Elixinol Wellness Ltd (ASX:EXL) has signed a binding Business Sale Agreement to acquire The Healthy Chef, a premium lifestyle brand offering clean nutrition for women's health, inner beauty, and wellbeing. The acquisition is expected to enhance revenue, margins, and EBITDA, providing synergies for scaling and cost optimization in both Australia and the USA. The company has secured commitments for approximately A$1.1 million through an institutional Placement and is launching a non-underwritten Share Purchase Plan to raise up to an additional A$0.5 million, aiming to complete the Acquisition and support growth initiatives.

Executive Commentary on The Healthy Chef Acquisition

We are thrilled to announce the acquisition of The Healthy Chef, which represents a strategic catalyst for our growth ambitions. This acquisition is expected to be margin accretive with synergies and cost savings projected to significantly improve Group gross margins. Additionally, it offers substantial growth potential in untapped consumer segments. We are delighted to welcome Teresa Cutter as a global brand ambassador and look forward to working closely with her to unlock the full potential of The Healthy Chef brand.

Summary of Elixinol Wellness's Acquisition and Capital Raising

Elixinol Wellness Ltd's acquisition of The Healthy Chef is a strategic move to enhance its branded business and drive revenue growth, cost synergies, and positive EBITDA contribution. The acquisition complements Elixinol's current business and brand portfolio, providing opportunities for expansion and leveraging existing infrastructure and distribution channels. The capital raise through institutional Placement and Share Purchase Plan will provide the necessary funds to complete the Acquisition and support growth initiatives. The company aims to build a profitable 'House of Brands' in clean nutrition, achieving record revenues, strong growth, and category leadership in Australia, with the USA identified as the next growth horizon. The Acquisition is expected to contribute to the company's core principles of sustainable nutrition and provide substantial growth potential in untapped consumer segments.