Skin Elements secures $700K placement to fund product commercialisation
Skin Elements (ASX: SKN) has received firm commitments to raise A$700,000 (before costs) through the SKN placement of fully paid ordinary shares at $0.0022 per share. Each new share subscribed for carries one free attaching option.
The commitments came from sophisticated and professional investors. The funds are intended to support the Company’s existing product programs, including the ECO Nurture natural plant bio-stimulant, SuprCuvr disinfectant, and the Soleo Organics and PapayaActivs therapeutic skincare and personal protection range.
The ECO Nurture program has already reached a first commercial milestone through the Farmlands exclusive distribution order, a NZ$600,000 initial purchase of 4,000 litres in New Zealand that still depends on ACVM authorisation.
According to the Company, the Placement provides a strengthened balance sheet and additional working capital to support the advancement and commercialisation of those programs.
Rod Nicholas, Non-Executive Chairman
“This capital raising provides Skin Elements with additional funding to progress its existing product portfolio and pursue its commercialization and growth strategies. We appreciate the continued support of shareholders…”
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Placement terms at a glance
The table below sets out the key terms of the Placement as detailed in the announcement.
| Fact | Detail |
|---|---|
| Amount raised (before costs) | A$700,000 |
| New Shares | 318,181,818 fully paid ordinary shares |
| Issue price | $0.0022 per share |
| Attaching options | 318,181,818, exercisable at $0.004 on or before three years from their date of issue |
| Ranking | New Shares rank equally with existing fully paid ordinary shares |
The issue price is benchmarked against two recent trading measures:
- A 10.00% premium to SKN’s last close price of $0.002 on 22 October 2026.
- A 24.14% discount to SKN’s fifteen-day volume weighted average price (VWAP) of $0.0029.
Phoenix Global Investments Pty Ltd acted as Sole Lead Manager to the Placement. It will receive a capital raising fee of 6% of gross proceeds raised, equivalent to $42,000 (excluding GST).
That fee may be paid in cash or satisfied through the issue of fully paid ordinary shares and options issued on the same terms as the Placement, subject to applicable ASX Listing Rule requirements.
Two tranches explained
Subject to necessary shareholder and regulatory approvals, the Placement is proposed to be issued in two tranches:
- Tranche 1: 318,181,818 shares to raise $700,000 (before costs), to be issued using the Company’s existing placement capacities under ASX Listing Rule 7.1 and 7.1A.
- Tranche 2: 318,181,818 attaching options, subject to shareholder approval at a general meeting expected to be held shortly.
How placements with attaching options work
A placement is a capital raising in which new shares are issued to selected sophisticated and professional investors rather than being offered to all existing shareholders. In this case, those investors committed to subscribe at $0.0022 per share.
An attaching option is a right, not an obligation, to buy one more share at a set price within a set period. Here, each investor receives one free option for every new share subscribed for, exercisable at $0.004 on or before three years from its date of issue.
Pricing context matters when weighing a deal like this. The 10.00% premium to the last close and the 24.14% discount to the fifteen-day VWAP show where the issue price sits against a single day’s close and against average trading over recent weeks.
What happens next for Skin Elements
The Company has provided an indicative timetable, which is subject to change:
- Announcement of the Placement and resumption of trading: Tuesday, 27 October 2026.
- Settlement of Tranche 1: Friday, 6 November 2026.
- Issue of Tranche 1 new shares to sophisticated investors and Lead Manager: Monday, 9 November 2026.
- Shareholder approval for options to be issued to directors at the Company’s General Meeting: Late November 2026.
- Issue of Tranche 2 new options to sophisticated investors and Lead Manager: Early December 2026.
The Company reserves the right to vary the dates, subject to the Corporations Act, the ASX Listing Rules and other applicable laws.
For investors, the Chairman said the additional funding will allow the Company to remain focused on advancing its product programs and evaluating opportunities to build long-term shareholder value.
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