Xenitra Ltd Launches A$1.5M Placement for Higher Margin Sales Push

Xenitra launches A$1.5M placement to fund higher-margin sales push

Xenitra Limited (ASX:XEN) has received firm commitments to raise A$1.5 million before costs through a placement, capital earmarked to accelerate higher-margin sales across three commercial channels.

The raise comprises 500,000,000 new fully paid ordinary shares at A$0.003 per share, a 6.25% discount to the 15-trading-day VWAP. Investors will also receive one free-attaching option for every two Placement Shares, exercisable at A$0.004 on or before 2 April 2028 and subject to shareholder approval.

Proceeds are directed at expanding inventory, fulfilment and brand onboarding across its OTC Medicines, FSMP and OPAL businesses. Management has framed the raise as execution capital to convert existing agreements and demand into revenue.

Placement terms at a glance

The table below summarises the key mechanics of the placement as disclosed by the Company.

Where the money goes: converting demand into higher-margin sales

The Company has outlined four categories for the deployment of placement proceeds, each tied to commercial execution rather than speculative expansion:

• OTC and FSMP inventory and fulfilment: supplier payments, product procurement, inventory depth, logistics and purchase-order execution under the Kangsheng and Joy Charm relationships.

• Ecommerce range expansion: new product listings and online activation through Fukang’s established Hong Kong and mainland China channels, including the JD.com storefront.

• OPAL scale-up: onboarding additional brands and distribution partners, plus supporting the ecommerce and tokenisation infrastructure required to lift tokenised product volumes.

• Growth working capital and infrastructure: ongoing corporate costs through the coming financial year, together with the costs of the placement.

The Company describes the raise as consistent with its transition away from a predominantly low-margin distribution model toward a diversified cross-border healthcare and digital-commerce platform with materially higher-margin sales channels.

Three growth engines driving the strategy

OTC Medicines: a pharmaceutical channel now in market

The acquisition of Hong Kong Fukang Trading Co. established an operational OTC Medicines platform incorporating a Hong Kong pharmaceutical wholesale licence, an experienced local team, warehousing and logistics capability, and an active JD.com OTC storefront.

Initial Fukang activity generated and fulfilled approximately A$450,000 in orders during July 2026 (preliminary and unaudited). This channel is underpinned by the three-year Kangsheng agreement, which carries a minimum A$12 million procurement commitment, providing what the Company describes as commercial validation and a pathway to scale.

The Kangsheng procurement agreement locks in a minimum A$12 million across three years and grants Fukang preferred supply-chain partner status, with Kangsheng’s omnichannel retail and ecommerce network providing immediate China market reach that would otherwise take years to replicate organically.

FSMP: extending into regulated medical foods

The Joy Charm framework agreement, announced on 18 August 2026, targets A$5 million in Food for Special Medical Purposes (FSMP) procurement over three years and extends the Company’s healthcare offering into regulated medical foods.

The Company has stated clearly that this target is not a guaranteed minimum. Sales will arise through individual purchase orders governing product, pricing, delivery and payment terms as the relationship is activated.

OPAL: early sales validation and expanding distribution

OPAL has generated more than A$1.5 million in tokenised product sales and onboarded over 500 distribution partners in less than one quarter following launch. According to the Company, OPAL’s tokenised sales model carries a substantially higher margin profile than its historical nutritionals distribution business.

The first-month OPAL sales milestone of over A$500,000, reached with more than 130 distributors already active in the ecosystem, established early commercial proof that the tokenised distribution model could attract and retain channel partners at scale ahead of the broader platform build-out.

Placement proceeds are intended to support the onboarding of additional international FMCG brands and distributors, expand product availability and strengthen the underlying ecommerce and tokenisation infrastructure.

What is RWA tokenisation and why it matters

Real World Asset (RWA) tokenisation refers to representing physical products digitally, enabling them to be traded and distributed across business-to-business, retail and ecommerce channels. In Xenitra’s case, this model is integrated directly into fast-moving consumer goods (FMCG) sales channels in China.

The Company states it is “one of the first Australian companies to commercially deploy Real World Asset (RWA) tokenisation integrated directly into mainstream FMCG sales channels in China.”

For investors, the relevance lies in margin and scalability. The tokenised model is positioned as a higher-margin channel that can onboard additional brands without the cost structure of traditional distribution.

A leaner platform already generating cash

The placement builds on an operating base the Company describes as strengthened following a year-long strategic reset. Key metrics from the latest reported quarter include:

• A$800,000 in positive operating cash flow

• A 16% gross-margin improvement

• Approximately A$1 million in annualised operating savings

These figures reflect what the Company characterises as a return to cash discipline over the past year, rather than a single-period result. The raise is positioned as capital to accelerate an improving foundation, not to rescue the business.

Chairman’s outlook

Chairman Dr Anthony Noble framed the raise around commercial execution and the conversion of established agreements into sales.

Dr Anthony Noble, Chairman of Xenitra

“Xenitra has spent the past year rebuilding the business around cash discipline and higher-margin growth. The result is a leaner platform that is already producing positive operating cash flow, while OTC Medicines, FSMP and OPAL are creating new commercial pathways at pace. This raising is deliberately focused on execution. It gives us working capital to support the ongoing operations of the business, including to purchase and move inventory, fulfil demand, widen our online product range and accelerate the onboarding of brands and distributors into OPAL. Our objective is straightforward: convert the agreements, channels and customer demand we have established into rapidly growing, higher-margin sales. We appreciate the support of participating investors and look forward to delivering Xenitra’s next phase of commercial growth.”

What comes next

The Company has outlined the following near-term milestones and requirements:

• Indicative allotment of Placement Shares on 7 September 2026.

• Shareholder approval required for the Placement Options and the Lead Manager securities.

• Deployment of capital into inventory, fulfilment and OPAL brand and distributor onboarding.

The strategic thesis centres on execution capital to activate the established Kangsheng, Joy Charm and OPAL channels, converting existing agreements and demand into higher-margin revenue as the Company advances its next phase of commercial growth.

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