Merino & Co. Limited (ASX: MNC) announced on 2 September 2026 that it has secured firm commitments for a placement, successfully raising $1,010,000 before costs. The company, a vertically integrated entity, designs, manufactures, markets, and sells wool products, serving both Australian and international markets with its merino wool garments and accessories. This capital raise involves the issuance of 10,100,000 new fully paid ordinary shares at $0.10 each. This issue price represents a 2.9% premium to the 15-day volume-weighted average price (VWAP) of A$0.09718. The placement will utilise Merino & Co.’s existing capacity under ASX Listing Rule 7.1, meaning no shareholder approval is required.
The funds from the placement will be primarily allocated towards the company’s ongoing operational and marketing activities. A significant focus will be the forthcoming launch of its new sub-brand, YÙE, and its associated YÙE+U botanical dye project. YÙE aims to extend Merino & Co.’s fibre and manufacturing expertise into a distinct design register, planning collections across life, travel, sleep, and home, developed in collaboration with relevant authorities. YÙE+U is an innovative botanical dye project, set to integrate fibre, science, place, and experience through collaboration with urban and regional communities.
Settlement for the placement and the issue of the new shares is expected on or around 4 September 2026. These new shares will rank equally in all respects with the company’s existing shares. Brokers managing the placement will receive a capital raising fee of 3% of the gross proceeds. In addition to the YÙE and YÙE+U initiatives, the raised capital will also contribute to general working capital purposes for Merino & Co. The company anticipates releasing a further announcement in the coming weeks, detailing the specifics of the YÙE and YÙE+U launch.
