Melodiol Global Health (ASX: $ME1) Corporate Update

Melodiol Global Health Limited (ASX: $ME1) has received independent appraisals valuing the Mernova land and building at $10.4 million to $12.0 million. The company also reported strong revenue progress, with $21.6m in revenue delivered for FY23, a 148% increase on the PCP, and $4.4m of unaudited revenue for Q1 FY24, a 91% increase on the PCP. Additionally, Melodiol has entered into a convertible note facility of up to $5m with Harbour Capital Opportunities Fund Pty Ltd.

Executive Commentary on Corporate Update

CEO and Managing Director, Mr William Lay, stated, 'We are pleased to see the strong appraisal results for Mernova. The group has seen significant step ups in revenue VS. prior fiscal years and with our focus on core subsidiaries, we are working hard to drive profitability as soon as possible. The new convertible notes will be a source of capital that assists us in pursuing this objective.'

Summary of Corporate Update and Outlook

The independent appraisals validate Melodiol's significant investment in the Mernova property. The company is considering strategic alternatives to utilize the valuation to simplify and improve its balance sheet. The new convertible note facility provides financial flexibility to support marketing, sales, and general working capital. Melodiol's strategy remains focused on driving profitability through core subsidiaries and ongoing revenue growth. The company's pursuit of a cash flow positive state and reduction of operating outflows reflects its commitment to creating value for shareholders. Melodiol's outlook includes further updates on the strategic alternatives for the Mernova property and the pursuit of ongoing revenue growth and debt reduction.