Skin Elements Limited (ASX: SKN), an Australian natural biotechnology company focused on the development of its SE Formula Biotechnology, has announced it has received binding commitments for a $2.5 million two-tranche placement. The placement will be at $0.002 per share, and includes one free attaching unquoted option for every two shares issued, exercisable at $0.006$ and expiring three years from the issue date. The funds will be used to complete the company’s development program for its award-winning SE Formula. 62 Capital Pty Ltd acted as the sole lead manager for the placement.
The placement consists of two tranches. The first tranche of $315,000 will involve the issue of 103,000,000 shares under ASX Listing Rule 7.1 and 54,500,000 shares under ASX Listing Rule 7.1A, utilising the Company’s remaining placement capacity. The second tranche, amounting to $2,185,000, will comprise the issue of 1,092,500,000 shares, along with 625,000,000 options. The second tranche is subject to shareholder approval at the company’s Annual General Meeting, scheduled for late November 2025.
The placement price of $0.002 per share represents a 33% discount to the last closing price of $0.003 and a 19% discount to the 15-trading day volume weighted average trading price up to 10 October 2025. In consideration for their services, 62 Capital will receive a capital raising fee of 6% (plus GST) of the amount raised, payable in cash or shares at their discretion, subject to shareholder approval if shares and options are elected.
According to Skin Elements, the placement proceeds will be allocated to several key areas, including $1,200,000 for the SE Formula scale launch into commercialisation, $1,150,000 for working capital, and $150,000 for covering the costs of the issue. The placement will result in the issue of 1,250,000,000 shares, representing approximately 116% of the currently issued shares. Existing shareholders will experience a dilution of approximately 64% as a result of the placement. The company has ensured that no investor will hold a relevant interest greater than 20% as a result of the placement, and that no investor is an associate of any other investor.
