Q1 FY27 Quarterly Update and Appendix 4C
Completed Pain Away divestment, repaid $11.79m debt, now debt-free with $5.09m cash.
- Cash and cash equivalents $5.09 million (prior $0.86 million)
- Borrowings repaid $11.79 million
- Cash receipts from customers $3.93 million (prior $5.69 million)
- Net operating cash outflow $4.78 million
- Administration and corporate costs $1.49 million
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Highlights
- Completed the divestment of the Pain Away business in September 2026, representing a significant step in the Company's strategic realignment.
- Repaid $11.79 million of borrowings during the quarter, leaving the Company with no borrowings outstanding at 30 September 2026. Cash and cash equivalents at 30 September 2026 were $5.09 million, compared with $0.86 million at 30 June 2026.
- Continued the realignment of management, operating resources and corporate costs to the requirements of the retained business.
- Board focus on existing consumer health operations and the assessment of complementary opportunities in branded consumer goods, including in consumer health, wellness, personal care and related retail categories, across online and in-store distribution channels.
Quarterly overview
Wellnex Life Limited (ASX/AIM: WNX) ("Wellnex" or the "Company") is pleased to provide its quarterly activities update and Appendix 4C for the three months ended 30 September 2026. The period was characterised by the completion of the Pain Away divestment, significant debt repayments and a transition towards a more focused operating platform.
The Board's priorities are to maintain financial discipline, align the cost base with the retained operations and consider opportunities that build on the Company's experience in developing, sourcing, marketing and distributing branded consumer products through a number of distribution channels across online and in-store platforms.
Pain Away divestment and financial restructuring
The Pain Away divestment was completed in September 2026 following shareholder approval. During the same period, Wellnex repaid $11.79 million in borrowings. Cash and cash equivalents increased to $5.09 million at quarter end, from $0.86 million at 30 June 2026. The Appendix 4C reports no financing facilities drawn or available at 30 September 2026. The Board considers that the completion of the divestment and associated financing activity provides a stronger foundation for the next stage of the Company's development.
Cash flow and operating position
Cash receipts from customers totalled $3.93 million for the quarter, compared with $5.69 million in the preceding June quarter. Net operating cash outflow for the quarter was $4.78 million, compared with a positive operating cash flow of $0.06 million in the June quarter.
Operating cash expenditure during the period included $1.49 million in administration and corporate costs, $1.36 million in interest and other financing costs, and $1.08 million in staff costs.
The September quarter includes expenditure incurred during the period related to the business transition and is not expected to reflect the ongoing operating cost structure of the retained business following the completion of the divestment and associated organisational changes. Additionally, interest and financing costs in the quarter to 30 September 2026 are non-recurring, following the repayment of borrowings. The Company is currently debt free.
The Company ended the quarter with cash and cash equivalents of $5.09 million, representing an increase of $4.22 million compared with the previous quarter.
Retained operations and consumer products strategy
Following the sale of Pain Away, Wellnex continues to focus on its retained consumer health activities and existing commercial relationships. The Board intends to leverage the capabilities developed through Wellnex's involvement in branded consumer products, including product commercialisation, brand development, retail distribution and supply relationships.
Consistent with this experience, the Company is assessing potential acquisition and strategic investment opportunities in consumer facing product businesses. Areas of interest include established brands and distribution led businesses across consumer health, wellness, personal care and adjacent consumer goods categories. In assessing opportunities, the Board will consider brand strength, customer demand, distribution reach, cash generation, operational synergies and the capital required to support sustainable growth.
Funding and outlook
At 30 September 2026, Wellnex held $5.09 million in cash and cash equivalents. As the Company has curtailed activities following the Pain Away divestment, and is aligning its management and operating teams, the Board does not expect the expenditure profile reflected in the September quarter to be repeated. In addition, the net operating cashflows for the quarter included one-off transaction costs associated with the sale of Pain Away brand. The Company will continue to manage expenditure and working capital carefully as the retained operations are repositioned.
The Board's immediate priorities are to complete the operating realignment, preserve financial flexibility, support existing commercial arrangements and progress a disciplined review of complementary consumer products opportunities. Wellnex will update shareholders on material developments in accordance with its continuous disclosure obligations.
Related-party payments
Payments to related parties and their associates included in operating cash flows were $310,773 for the quarter. These payments comprised directors' fees, executive remuneration and associated superannuation paid to directors and director-related entities in the ordinary course of business.
This ASX/AIM announcement has been authorised by the Board of Wellnex Life Limited (ASX/AIM:WNX).
| 5. | Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | Current quarter $A'000 | Previous quarter $A'000 |
| 5.1 | Bank balances | 5,085 | 862 |
| 5.2 | Call deposits | - | - |
| 5.3 | Bank overdrafts | - | - |
| 5.4 | Other (funds held in trust) | - | - |
| 5.5 | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | 5,085 | 862 |
| 6. | Payments to related parties of the entity and their associates | Current quarter $A'000 | |
| 6.1 | Aggregate amount of payments to related parties and their associates included in item 1 | 311 | |
| 6.2 | Aggregate amount of payments to related parties and their associates included in item 2 | - | |
| 7. | Financing facilities Note: the term "facility' includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. | Total facility amount at quarter end $A'000 | Amount drawn at quarter end $A'000 |
| 7.1 | Loan facilities | - | - |
| 7.2 | Credit standby arrangements | - | - |
| 7.3 | Other (Director's loan) | - | - |
| 7.4 | Total financing facilities | - | - |
| 7.5 | Unused financing facilities available at quarter end | - | |
| 8. | Estimated cash available for future operating activities | $A'000 | |
| 8.1 | Net cash from / (used in) operating activities (item 1.9) | (4,784) | |
| 8.2 | Cash and cash equivalents at quarter end (item 4.6) | 5,085 | |
| 8.3 | Unused finance facilities available at quarter end (item 7.5) | - | |
| 8.4 | Total available funding (item 8.2 + item 8.3) | 5,085 | |
| 8.5 | Estimated quarters of funding available (item 8.4 divided by item 8.1) | 1.1 | |
| 8.6 | If item 8.5 is less than 2 quarters, please provide answers to the following questions: |
No, the operations of the business have been curtailed with the sale of the Pain Away brand during the period. The business is realigning the management and operational team to support the existing product lines it continues to sell. In addition, the net operating cashflows for the quarter included one-off transaction costs associated with the sale of Pain Away brand.
No, the entity expects existing cash to be sufficient following the sale of the Pain Away brand, the repayment of borrowings and the reduction in its ongoing cost base.
Yes, the entity expects to continue to meet its continued operations in its current space. Refer to 8.6.1 above for commentary on the net operating cashflows.
Compliance statement
2 This statement gives a true and fair view of the matters disclosed.
Date: ...................................................................................
The Board of Directors
Authorised by: ...................................................................................
(Name of body or officer authorising release - see note 4)
Notes
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