Wellnex Life (AIM:WNX) announced that the sale of its Pain Away business and assets to Mentholatum Australasia Pty has completed, with the upfront purchase price now settled.
The transaction follows shareholder approval at an extraordinary general meeting held on 8 September, satisfying all remaining conditions attached to the deal first announced on 6 August.
Wellnex Life, which trades on both the ASX and AIM, will continue to run its liquid soft gel analgesics business, built on the company's own Therapeutic Goods Administration (TGA) marketing authorisations.
The company also retains a contract manufacturing operation, which it describes as capital-light with growing international reach.
The board plans to use the cash proceeds to retire debt and fund working capital for the continuing business.
Wellnex Life said it will also review options aimed at delivering the best value for shareholders.
A further update to shareholders is expected in due course.
News Intelligence what this means for the company
Wellnex Life has closed the sale of Pain Away to Mentholatum Australasia for A$19.8m upfront (plus a A$1.5m earn-out), completing a transaction first announced in August after shareholder approval on 8 September. The company will deploy proceeds to eliminate debt and fund working capital in its retained liquid soft gel and contract manufacturing operations. This de-risks the balance sheet and narrows Wellnex to two core, capital-light businesses with growing international reach.
The sale removes a non-core asset and delivers the promised debt elimination, simplifying the capital structure after a 71% reduction in net loss in the prior year. Execution risk has now passed; the question shifts to whether the retained analgesics and contract manufacturing franchises can sustain the operational momentum and whether management's promised shareholder value review yields concrete capital allocation.
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