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Quarterly Activities Report: Melodiol Delivers $9.3m in Revenue During H1 FY24 – a 33% Increase the PCP
Melodiol Global Health Limited (ASX:ME1) (‘Melodiol’ or ‘the Company’) is pleased to provide the following update on progress for the three month period ended 30 June 2024 (the ‘quarter’), as well as its Appendix 4C. All financial results are in Australian dollars and unaudited (unless otherwise stated).
Highlights:
- Q1 FY24 unaudited revenue of $4.8m – marks a 9% increase on the prior quarter
- H1 FY24 unaudited revenues of $9.3m – a 33% increase on H1 FY23 ($7.0m)
- Follows total FY23 record revenues of $21.6m – a 148% rise on the PCP
- Results underpinned by Mernova Medicinal Inc., which delivered $2.0m in revenue during Q1 FY24 – a 25%+ increase on Q2 FY23
- Wholly-owned operating division Health House International generated $2.8m in revenue during the quarter – continues to generate significant revenues since acquisition
- Board and management remain committed to ongoing efforts to further reduce operating expenditure
- Subsequent to quarter end, the Company announced a non-binding LOI for an asset sale for C$11m (A$12m)
Financial performance:
During Q2 FY24, Melodiol delivered $4.8m in unaudited revenue, which was a 9% increase on the previous quarter (Q1 FY24: $4.4m). H1 FY24 revenues of $9.3m are an increase of 33% vs. H1 FY23 ($7.0m). The results follow record group revenues of $21.6m in FY23, a 148% increase on the PCP.
Q1 FY24 revenue was underpinned by Melodiol’s 100%-owned Canadian subsidiary, Mernova Medicinal Inc. (‘Mernova’) which generated $2.0m in revenue for the period. Mernova’s revenue was up 25% on the PCP (Q1 FY2024 revenue: $1.5m).
Further, wholly-owned operating division Health House International (‘HHI’ or ‘HHI International’) also contributed $2.8m in revenue. HHI’s ongoing contribution to the Company’s revenue since its acquisition has further underpinned Melodiol’s stated strategy of leveraging strategic M&A to bolster operations.
Receipts from customers for the period totalled $4.9m, in line with Q1 FY24 ($5.0m). Net cash used in operating activities was $1.9m. For H1 FY24, total cash used in operating activities was $3.0m, significantly lower than H1 FY23 ($6.6m).
Cash used in operating activities comprised mainly of product manufacturing and operating costs ($3.3m), advertising and marketing ($0.1m), staff costs ($1.5m), and administration and corporate costs ($1.7m).
At quarter end, the Company has cash at bank if $0.6m. Payments to related parties and their associates as detailed in section six of the attached Appendix 4C relates entirely to Directors Fees / expenses of $0.08m.
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This article includes content from Melodiol Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Melodiol Global Health
Overview
The global regulatory climate around cannabis use is evolving and has resulted in a huge investment opportunity for investors seeking to capitalize on this emerging market. A significant player in the global cannabis market, Melodiol Global Health’s (ASX:ME1, FRA:1X8) value proposition is founded on its strategic operations in both Canada and Australia.
In recent years, countries like Canada and Australia have established new regulations to legalize cannabis use, either for recreational or medical purposes – or both. Other countries and regions are not far behind in their cannabis regulation journey.
Melodiol oversees multiple global business units that provide everything from recreational and medical cannabis to hemp-based, athletic, beauty and personal care products. Through subsidiary Halucenex Life Sciences, the company has also dipped its toes into the medical psychedelics market.
Melodiol's two most significant subsidiaries, by far, are Mernova and Health House International. The former is a licensed Canadian producer of small-batch, high-quality craft cannabis with incredibly strong revenue growth. The former is a leading distributor of medical cannabis in Australia with additional non-cannabis operations in the United Kingdom.
The company aims to increase shareholder value and spur further growth in its subsidiaries through optimisation which will ultimately result in improved operating and financial performance. Group revenues for the first half of 2023 totalled AU$6.99 million, representing a 62-percent increase from the same period in 2022 at AU$4.32 million.
Accounting for the recent acquisition of Health House International, unaudited pro forma revenue increased to AU$8.26 million or AU$33 million on an annualised basis — a 280-percent increase from the company's 2022 revenue. Unaudited net sales for the combined Melodiol group in Q2 2023 totaled $4.74 million, a 105-percent gain on the previous quarter and a 202-percent increase on the previous corresponding period. The company has also demonstrated a strong growth trajectory into Q3 2023.
Company Highlights
- A significant player in the global cannabis market, Melodiol Global Health is well-positioned to capitalise on a global trend toward recreational and medical cannabis legalization.
- Melodiol has built a diverse portfolio of plant-based brands situated in multiple high-growth market segments and geographies:
- Mernova, a licensed producer of craft cannabis products in Canada sold under the Ritual brand banner.
- Health House International is a leading Australian distributor of medicinal cannabis.
- Sierra Sage Herbs is an American developer of plant-based first aid, beauty and personal care brands Green Goo, Southern Butter and Good Goo.
- Creso ImpACTIVE, which produces high quality hemp-derived CBD products for athletes.
- Halucenex, a clinical-stage psychedelics research and development operation.
- Creso Pharma Switzerland, which carries out CBD-related research, development and commercialization initiatives.
- Melodiol has displayed incredibly strong financial performance throughout 2023, with significant revenue growth and notable improvements in core business unit EBITDA margins.
- The company intends to continue on its current path of generating value for shareholders through strong operational and financial performance.
Key Business Units
Mernova
Mernova product suite
Based in Canada, Mernova is a 100-percent-owned subsidiary of Melodiol. As a fully licensed cannabis producer, Mernova produces high-quality craft cannabis intended primarily for recreational use. Its products are among the most concentrated in the Canadian market, with THC content typically 25 percent or higher.
Mernova’s cannabis products are currently available in Saskatchewan, Ontario, Nova Scotia, New Brunswick, Manitoba, Yukon and Newfoundland. Mernova is notable as the first of Melodiol's divisions to generate positive cash flow from operations, achieving significant revenue growth in the first half of 2023. The company currently aims to bring its Mernova products to other markets within Canada and has recently launched a medicinal cannabis division.
Highlights:
- Purpose-built Facility: Mernova's 24,000-square-foot production facility fully adheres to Health Canada's GPP standards and is scalable up to 200,000 square feet.
- Branded Cannabis: Mernova markets its products under the Ritual brand, comprising three distinct segments:
- Ritual Green: Dried flower products
- Ritual Sticks: Pre-rolled joints
- Ritual Gold: Handheld vaporizers
- Revenue Growth: Mernova's total unaudited Q2 FY2023 sales totalled AU$1.22 million. This follows the company’s reported revenue increase of 46 percent from Q4 2022 to Q1 2023, hitting a record high of AU$1.55 million. This growth has had a significant positive impact on Melodiol's overall profits for the year.
Health House International
A leading distributor of medical cannabis products to the Australian market, Health House International also operates a division in the United Kingdom which distributes medicines and medicinal supplies. The business unit is primed to capitalise on any changes which might occur in the European regulatory climate. Melodiol acquired Health House International in the first quarter of 2023, resulting in a material increase in group revenues.
The company and its operating subsidiaries have delivered strong revenue and positive EBITDA margins throughout the first half of 2023. This trend is expected to continue for the remainder of the year.
Highlights:
- Recently Acquired: Melodiol's acquisition of Health House International closed in May 2023, cementing the company's leadership in the Australian cannabis market.
- Strong Growth Potential: The company generated AU$5.95 million in cash receipts in Q1 2023, a 10-percent increase on last quarter and a 36-percent increase over the previous corresponding period.
ImpACTIVE Limited
ImpACTIVE is a hemp-based athletics brand that provides CBD products to help athletes improve and redefine their recovery routines. In September 2023, the company secured a landmark sponsorship deal with Texas Christian University's highly reputed NCAA Division 1 sports program. The school's large athletics department boasts more than 200,000 social media followers alongside a large and loyal domestic fanbase.
Other ImpACTIVE brand ambassadors include Kevin Tansey, Mark Fraser, Matthew Barnaby, Nathaniel Behar, Colten Saucerman, Kelly Whaley, Will Wilcox and Troy Van Biezen.
Sierra Sage Herbs
Sierra Sage Herbs' primary offering is Green Goo, a branded line of plant-based first aid, beauty and personal care products. The company also maintains two other wholly owned brands, Southern Butter and Good Goo. In addition to a significant direct-to-consumer sales channel, Sierra Sage's distribution network includes key retail outlets across the United States, including Walmart, Walgreens, Target, Albertson and Whole Foods.
Halucenex Life Sciences
A clinical-stage psychedelic drug development company, Halucenex maintains a 6,000-square-foot Canadian medical facility with six treatment rooms and a secure laboratory dedicated to clinical research and psychedelics-assisted psychotherapy. The company has a Health Canada Controlled Drug and Substance Dealer's License for the possession, production, assembly, sale, provisioning, sending, transportation and delivery of multiple compounds including ketamine, psilocin, psilocybin and salvia divinorum.
Its phase 2 clinical trial test on the efficacy of psilocybin in the treatment of post-traumatic stress disorder (PTSD) has delivered promising results thus far, with the first 10 percent of trial patients experiencing total remission from both depression and PTSD symptoms after their first macro-dose.
Creso Pharma Switzerland
Creso Pharma Switzerland is a hemp-based food, feed supplements and topical products brand based in Europe. Backed by an experienced international team from the pharmaceutical industry, it serves the European Union, Switzerland, Eastern Europe, Latin America and Asia Pacific regions. The company's products are all Swiss-made, produced in GMP-certified facilities, as required, and made from EU-certified, GAP-compliant plants.
Management Team
William Lay — CEO and Managing Director
William Lay is a former investment banker who was involved in more than $5 billion worth of merger and acquisition deals in his role as an associate director at Canadian licenced producer Canopy Growth.
Boaz Wachtel — Chairman of the Board
A leading medical cannabis expert, Boaz Wachtel is co-founder and former MD of Phytotech Medical, Australia's first publicly-traded medicinal cannabis company.
Bruce Linton — Non-executive Director
Bruce Linton is the co-founder and former chairman of Canopy Growth, a world leader in cannabis and psychedelics.
Micheline MacKay — Executive Director
Micheline MacKay serves as managing director at Mernova, one of Melodiol's key business units. She has 22 years of experience in regulatory environments.
Ben Quirin — Non-executive Director
Based in Australia, Ben Quirin has over 20 years of experience in the global telecommunications, technology and pharmaceutical sectors. Prior to his role at Melodiol, Quirin served as regional managing director (APAC) for Canopy Growth.
Peter Hatfull — Non-executive Director
Peter Hatfull has over 40 years of experience in senior executive and board positions with various Australian and international companies.
Yuan (Tim) Tian — CFO
Tim Tian has more than 15 years of experience in financial controllership roles and has been Melodiol's financial controller over the last three years.
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.”
Click here for the full ASX Release
This article includes content from Melodiol Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Melodiol Global Health Limited (ASX: ME1) – Trading Halt
Description
The securities of Melodiol Global Health Limited (‘ME1’) will be placed in trading halt at the request of ME1, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Tuesday, 30 July 2024 or when the announcement is released to the market.
Issued by
ASX Compliance
Click here for the full ASX Release
This article includes content from Melodiol Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Mernova Q3 Revenue Update
Melodiol Global Health Limited (ASX:ME1) (‘Melodiol’ or ‘the Company’) is pleased to advise that its wholly owned Canadian subsidiary, Mernova, has delivered a strong start to Q3 2024 – amassing confirmed purchase orders of $1.5m (C$1.4m) in Q3 to date. During Q2 of 2024, Mernova had confirmed unaudited purchase orders of $2.0m (C$1.8m). This figure is a 25% increase on Q1 2024 ($1.6m) and a 33% increase on Q2 2023 ($1.5m). During H1 2024, Mernova revenues supported group revenues of $9.2m, a 31% increase on H1 2023 and an annualised rate of $18.4m.
Highlights:
- $1.5m (C$1.4m) in confirmed purchase orders for delivery in Q3 2024, a very strong start to the quarter
- Follows Q2 2024 unaudited confirmed purchase orders total $2.0m (C$1.8m), a 25% increase on Q1 2024 ($1.6m), and a 33% increase on Q2 2023 ($1.5m)
- Demand underpinned by ongoing emergence of Ritual brand as a high quality option for consumers
- Following recently announced $12m asset sale to strengthen balance sheet, Melodiol to leverage the brand awareness of Ritual to pursue continued sales into Canadian market, either by searching for new facility options or sourcing and branded resale of third party production
- Mernova was a strong contributor to group H1 2024 revenues of $9.2m, a 31% increase on H1 2023 and annualised rate of $18.4m
As recently announced (refer to ASX release: 23 July 2024), the Company has entered into a non-binding LOI for the sale of the Mernova land and production facility for an initial cash consideration of $12m, with up to $2.2m in earn outs. The transaction consideration is sufficient to repay the Company’s existing secured debt, thereby strengthening the balance sheet and providing working capital for further growth at Health House and Creso Pharma Switzerland. Additionally, the Company will attempt to recuperate revenues from Mernova, by retaining the Ritual brand as part of the transaction and either searching for new facility options, or by leveraging third party production to continue selling into existing markets. Recent revenue results for Mernova show that the Ritual brand experiences strong demand in the market, and the Company intends to leverage this demand during the next phase of its growth.
Management commentary:
CEO and Managing Director, Mr William Lay said: “Mernova continues to deliver very strong sales results. This is a result of the high-quality products that are produced, and the awareness of the brand in its core markets. Despite the contemplated asset sale, we intend to make every effort to continue offering the Ritual brand via either a new facility, or via third party production.”
Click here for the full ASX Release
This article includes content from Melodiol Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
$12M Proposed Cash Asset Sale to Strengthen Balance Sheet, with $2.2M of Earn Outs
Melodiol Global Health Limited (ASX:ME1) (‘Melodiol’ or ‘the Company’), is pleased to announce a non-binding Letter of Intent (LOI) with the Canadian based, Nacerna Life Sciences Inc. (‘Nacerna’). The LOI pertains to the sale of Melodiol’s cannabis production facility, equipment and land (‘Sale Assets’), located in Nova Scotia, Canada, for an initial cash consideration of $12m (C$11m).
Highlights:
- Melodiol has signed a non-binding LOI with Canadian-based Nacerna Life Sciences Inc. to sell its Mernova production facility and land in Nova Scotia for an initial $12m in cash consideration
- LOI includes two earn-out provisions totalling $2.2m which are payable to Melodiol on completion of each earn out provisions
- Initial purchase price in line with previously attained appraisals on the building, equipment and land valuing it at between $10.4m and $12m (C$9.5m to C$11m)
- Transaction proceeds sufficient to repay all existing secured debt, significantly strengthening the balance sheet
- Transaction expected to allow for working capital to be deployed to Health House and Creso Pharma Switzerland to aid in future growth
- Melodiol to keep its highly-established Ritual cannabis brand and products and will attempt to continue selling in the Canadian recreational market via sourcing and branded resale of third party production
- In H1 2024, Health House and Creso Pharma Switzerland delivered combined revenues of $5.6m, representing an annualised figure of $11.2m, not including future sales of Ritual branded products in Canada
- Ritual brand (which ME1 retains) accounted for approximately $6.9m (or 32%) of the Group’s total revenue in FY23
The initial consideration for the Sale Assets is at the top end of the independent appraisals received for the Sale Assets (refer to ASX release: 19 June 2024), which valued the Sale Assets between $10.4m and $12m (C$9.5m to C$11m). Furthermore, the initial consideration is sufficient to repay all of the Company’s existing secured debt, significantly improving the Company’s balance sheet, and is expected to allow for additional working capital to be deployed to Health House and Creso Pharma Switzerland. Health House and Creso Pharma Switzerland generated a combined $5.6m of revenue in the first half of 2024, an annualised run rate of $11.2m. Furthermore, the proposed transaction does not preclude Melodiol from retaining access to and generating revenue from the Ritual cannabis brand that had been produced at the Sale Assets. Following the transaction, Melodiol intends to leverage its ability to purchase third party produced flower (refer to ASX release: 27 May 2024) to attempt to continue marketing its Ritual products in the Canadian marketplace, thereby aspiring to retain some level of sales from the Ritual brand (which generated $6.9m of sales in FY23), even without access to the Sale Assets.
About Nacerna
Nacerna Life Sciences Inc. is a licensed medical cannabis and psychedelics health services provider. Nacerna is focused on enhancing the patient's journey while incorporating its proprietary infuser medical products into the standard of care. Nacerna offers its "Breakwater" branded micro dosing CBD/THC infuser products through national distribution channels.
Nacerna Life Sciences Inc operates from a 6,000 sqft Health Canada approved treatment facility and the Nacerna team has extensive experience in novel drug development utilizing cannabis and psychedelic compounds, as well as experience in performing clinical trials.
The Nacerna team over their career have successfully worked with Health Canada, Canada Veteran Affairs and other government bodies on a variety of projects.
Management commentary:
Chief Executive Officer Mr William Lay said: “The sale of the Mernova building, equipment and land is expected to be a pivotal step in the Company’s trajectory. Upon closing, we would be in a position to significantly improve our balance sheet, and focus working capital on Health House and Creso Pharma Switzerland, while also attempting to maintain a level of sales from the Ritual brand in Canada.
“We are pleased that the initial consideration is in line with the top end of the independent appraisals received for the Sale Assets, an outcome which highlights the quality of the assets the Company has built.
“Following the expected repayment of all secured debt, the Company will be in a stronger financial position, and able to focus all of its efforts on continued growth in the remaining business units, while aggressively pursuing its long-term strategic objective of group cash flow positive. We look forward to providing further updates in due course.”
Click here for the full ASX Release
This article includes content from Melodiol Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Melodiol Q2 Revenue and Updates
Highlights:
- Q2 2024 unaudited revenues total $4.8m, a 9% increase on Q1 2024 ($4.4m)
- Brings H1 2024 unaudited revenues to $9.2m, a 31% increase on H1 2023 ($7.0m)
- Growth underpinned by strong results at Mernova
Growth was underpinned by strong results at Mernova. During Q2 of 2024, Mernova had confirmed unaudited purchase orders of $2.0m (C$1.8m). This figure is a 25% increase on Q1 2024 ($1.6m) and a 33% increase on Q2 2023 ($1.5m). In addition to these strong results, Mernova already has confirmed purchase orders for Q3 2024 of $452k (C$411k), providing a strong foundation for the quarter.
Additionally, Mernova achieved a variety of key objectives, including the introduction of a new product category (edibles), the approval of numerous new SKUs in existing provinces, the introduction of new vaporiser flavours and a supply agreement to source additional capacity to keep up with strong demand.
In addition to these strong results, Mernova already has confirmed purchase orders for Q3 2024 of $452k (C$411k), providing a strong foundation for the quarter.
During Q2 of 2024, HHI also provided $2.8m in sales between its Australian and UK divisions. As stated previously, the Company is committed to rationalising non-core business units, while focusing on its core divisions, Mernova and HHI in an effort to achieve profitability as quickly as possible.
Management commentary:
CEO and Managing Director, Mr William Lay said:“We are very pleased to demonstrate quarter on quarter growth for Melodiol as a group. During the last year, the Company has completed a step change in terms of revenue size, and we are sharply focused on Mernova and HHI as our core business units. By focusing on these business units, and rationalising non-core business units, all of our teams are working hard to achieve group profitability as quickly as possible.”
Click here for the full ASX Release
This article includes content from Melodiol Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Corporate Update
Melodiol Global Health Limited (ASX:ME1) (‘Melodiol’ or ‘the Company’) is pleased to provide the following corporate update.
Highlights:
- Two independent appraisals received for Mernova land and building, with values ranging from $10.4 million to $12.0 million (C$9.5 million to C$11.0 million)
- Appraisals follow strong revenue progress at Melodiol, 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)
- Health House group has been a strong contributor to group revenues since acquisition in FY23
- Up to $5m convertible note facility entered into with Harbour Capital Opportunities Fund Pty Ltd
During May 2024, Mernova engaged two independent third party appraisal firms to ascertain the market value of the Mernova land and building. After a significant review process, these firms placed a market value on the Mernova property at a range of $10.4 million to $12.0 million. The Company is pleased with the result, which validates the significant investment it has made in this facility over the preceding years. The appraisals are subject to several assumptions and contain a reasonable exposure time of 3 to 6 months, further noting that that the estimate of market value is based on its continued operation for its intended use as a cannabis production facility. As such, the Company is considering strategic alternatives to utilise the land and building valuation to simplify and improve its balance sheet, including, but not limited to a potential sale leaseback transaction or a new secured loan. The intention of this process would be to replace the existing secured noteholders with one group to simplify the structure of the Company’s balance sheet, and to pursue a lower interest rate than the current secured note structures and potentially provide additional working capital above and beyond the refinancing. The Company is reviewing the credentials of various well renowned groups for this purpose and expects to engage one of them in the near term. The Company will provide further updates on this project in due course.
The appraisals underpin the value that the Company is driving at its core operational subsidiaries, Mernova and Health House. During FY23, the Company generated $21.6m of revenue (a 148% increase on the PCP) and during Q1 FY24, the Company generated $4.4m of unaudited revenue (a 91% increase on the PCP). The Company’s strategy remains to focus on these business units in an effort to drive profitability as quickly as possible.
Convertible Notes
Further to the Company’s announcement dated 21 February 2024, the Company is pleased to advise that it has entered into definitive agreements for an up to $5m convertible note facility with Harbour Capital Opportunities Fund Pty Ltd (“HCOF”). Full details of the convertible notes are set out in Appendix A. The issue of the HCOF convertible notes is subject to shareholder approval, which will be sought at an upcoming General Meeting.
Click here for the full ASX Release
This article includes content from Melodiol Global Health, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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