• Proposed $1.4 million raised via secured convertible notes
• Tranche 1: $700,000 committed, Tranche 2: $700,000 (subject to shareholder approval)
• Funds to support wholesale inventory build and working capital

The Calmer Co. International Limited (ASX: CCO), a leading consumer packaged goods company specialising in kava and other natural products, has announced that it has secured commitments for $1.4 million via a two-tranche secured convertible note issuance. The first tranche of $700,000 has been committed, with settlement expected by 30 September 2025. The second tranche of $700,000 is subject to shareholder approval at the company's upcoming AGM. The funds raised will be used to support wholesale inventory build ($500,000) and general working capital requirements ($200,000), positioning the company to continue its growth trajectory across international markets. This follows the successful launch of new products in the US market in July and continued sales momentum, with a 21% increase in monthly revenue over the 2 months from July to August. The company is now operating at an annualized revenue run rate exceeding $10 million. The convertible note structure was chosen as the most appropriate capital solution at this stage of high growth. The company also welcomes Applied Food Sciences, Inc. (AFS), a leading US-based distributor of functional ingredients, as a new strategic investor with a $100,000 allocation in Tranche 1. AFS's renewed participation underscores support for the company's strategic focus on US market expansion, particularly in the high-growth wholesale channel.

The Calmer Co. is actively seeking high-quality distribution partners, such as Network Nutrition (a subsidiary of IMCD), to strengthen its global wholesale capabilities and expand access to the nutraceutical market. The company believes its current valuation does not reflect the fundamental strength of its business and is excited about the growth opportunities ahead.