Wellnex Life sells Pain Away for $21.3M
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- Wellnex Life agreed to sell its Pain Away brand to Mentholatum Australasia for up to $21.3 million in cash.
- Wellnex Life shares jumped following the strategic divestment announcement.
- Proceeds will repay approximately $10.2 million in debt to make the business debt-free.
Wellnex Life (ASX:WNX) agreed to sell its Pain Away business for up to $21.3 million in cash.
The deal follows unsolicited acquisition interest received for the brand earlier this year.
"This transaction represents an important step for Wellnex Life," said Wellnex Life Interim Executive Chairman Eric Jiang.
The structure includes $19.8 million upfront cash and a performance earn-out of up to $1.5 million.
Following the announcement, the Wellnex Life share price was up at $0.55.
Wellnex stated that proceeds will repay $10.2 million in debt to achieve a debt-free balance sheet.
Remaining cash will fund ongoing operations, healthcare product expansion, and potential shareholder returns.
