EZZ Life Science Holdings Secures Strategic Investment from Kingstone Venture Capital

EZZ Life Science Holdings Ltd (ASX: EZZ) has lifted its cash position through a  private placement raising $854,100 at $0.50 per share to Kingstone Venture Capital Pty Ltd.

The placement is a 18.5% discount to the 30-day weighted average price.

EZZ and Kingstone began discussions in February when this entry price more resembled the markets valuation.

Shares in the company have climbed by around a third since early March to 12-month highs of $0.81.

EZZ is well-funded with $12.6 million in cash at the end of December 2023.

The stock is tightly held, with management accounting for over 66% before this transaction.

Use of funds

Funds raised from the placement will be used to expand EZZ’s distribution channels to include Kingstone VC and its affiliates’ networks.

Kingstone VC and its management have a proven track record as distributors of dairy, healthcare, and cosmetic products across major consumer markets.

These include China, Korea, Japan, and Southeast Asia, with a particular focus on Vietnam, Indonesia, and Cambodia.

Product range

EZZ has a broad range of products as the company formulates, produces, markets and distributes health supplements.

They are also an exclusive distributor of skin care products under the EÁORON brand in Australia and New Zealand to pharmacies, supermarkets and specialist retailers.

Financial performance

The company delivered strong revenue growth of 43% to $21.7 million in the first half of financial year 2024, compared the previous corresponding period.

The gross margin remained stable above 70%.

Strong omnichannel marketing capabilities have delivered results.

 

 

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