Corporate Update

Melodiol Global Health Limited (ASX:ME1) (‘Melodiol’ or ‘the Company’) is pleased to advise that it has raised $1.1m in new capital in the form of an equity placement and a loan.

Highlights:

• $1.1m in new capital raised, via combination of equity placement and new loans
• Follows group unaudited H1 2024 revenues of $9.3m, a 33% increase on H1 2023

Equity Placement

The Company advises that it has received firm commitments to raise approximately $530,000 (before costs) through the issue of 181,683,449 new shares, representing a Placement price of $0.00292 per Share. Funds from the Placement will be applied towards select business unit growth opportunities, corporate costs and costs of the Placement.

Subject to shareholder approval, the Placement participants will receive one free attaching option (“New Option”) for every one new Share issued under the Placement. The New Options will have a term of 5 years and a strike price of $0.005. The Company will seek quotation of the New Options on the ASX.

At the Company’s Annual General Meeting on 31 May 2024, the Company received shareholder approval to conduct placements of shares to raise up to $3m at a 30.00% discount to the 10-day volume weighted average price (“VWAP”) prior to the date on which the issue price is agreed by the Company and participants under the Revised Placement. The issue price of the shares represents a 30.00% discount to the 10-day VWAP of $0.00417.

The Company notes that further capital will be required in the near term with the Company considering additional sources of capital, including but not limited to, other debt funding, further capital raising activities, and divestment of core assets.

Loan Funding

Simultaneous to the placement, the Company confirms that is has drawn down $600,000 from the $2,000,000 LTC loan facility, which was approved by shareholders at the Annual General Meeting on 31 May 2024 (refer to resolution 33 of the Company’s AGM notice dated 1 May 2024 for additional information). Per the terms of the facility, drawn amounts accrue interest at a rate of 20% per annum, and may be converted at a 30% discount to the Company’s 20-day VWAP prior to the date LTC elects to exercise its conversion right. The loan contains an establishment fee of $100,000 (which has been deferred 60 days) and $200,000 payable in shares (at an issue price equal to the 10-Day VWAP prior to the date the first monies are advanced).

Lead Manager

Oakley Capital Partners Pty Ltd (“Oakley”) acted as lead manager to the Placement. Oakley will earn a 6% cash fee on the gross cash amount raised under the placement and the loan. Subject to shareholder approval, Oakley will also receive 50 million broker shares and 181,683,449 New Options (being the same number as issued to Placement participants).

Management commentary:

CEO and Managing Director, Mr William Lay said: “We are grateful for the continued support of our investor base as we progress the business. Our revenues for the half year show that we have built a strong base at Melodiol, and the announced non-binding LOI for the sale of a core asset for $12m in initial cash consideration demonstrates the quality of the assets within the portfolio. We look forward to providing further updates in due course.”

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