The Calmer Co International Limited (ASX:CCO), a company primarily focused on kava products and related wellness offerings, has announced a renounceable pro-rata entitlement offer to raise up to $3.5 million before costs. Eligible shareholders are invited to subscribe for one new share for every one share held on the record date, at an issue price of $0.001 per new share. The offer also includes one free attaching new option for every two new shares issued.
Mahe Capital Pty Ltd is partially underwriting the entitlement offer to $500,000. Additionally, the announcement outlines a ‘Top Up Offer’ allowing eligible shareholders to apply for new shares beyond their entitlement if not fully subscribed by others. The Entitlement Offer and the Top Up Offer are scheduled to close at 5:00 pm (AEST) on Monday, 17 August 2026.
The capital raised is earmarked for several strategic initiatives, including the repayment of Secured Convertible Notes, expanding inventory to support growing sales and new market entry, and undertaking e-commerce and awareness-generating marketing activities in Australia and the USA. Funds will also support new product launches and general working capital requirements, with adjustments to the use of funds if the maximum target is not met, prioritising the repayment of Secured Convertible Notes.
Shareholders who do not participate in the offer face potential dilution of approximately 50% of their holdings from the shares on offer, increasing to an aggregate of approximately 60% if all new options issued under the prospectus are exercised. The company also reiterates that the shares offered are of a speculative nature and advises investors to read the prospectus in its entirety and consult professional advisers.
