• Successful IPO and ASX debut, raising $6.35 million
• New manufacturing, storage and distribution premise secured in Wangara, WA
• Manufacturing capacity tripled with purchase of new automated Merino wool machines

Merino & Co. (ASX:MNC) is pleased to provide this report on activities for the quarter ending 31 December 2024. The company successfully completed its Initial Public Offering (IPO) during the quarter, raising $6.35 million, and subsequently listed on the Australian Securities Exchange (ASX) on 30 October 2024. The successful listing has allowed the company to gain valuable press exposure, including the launch of its online shop in January 2025, and provided the necessary funding to increase its scale. Funds raised during the IPO were used to secure more than 20 additional machines, including automated weaving loom, sock knitting, and knitting machines, which are expected to nearly triple the company's garment manufacturing capacity. The company also secured a new long-term lease agreement in November for a manufacturing, storage, and distribution facility in Wangara, Western Australia, which is nearly double the size of the company's previous facilities and strategically located near major infrastructure in Perth. At the end of the quarter, the company had cash at bank of approximately $3.8 million.

The company expects its manufacturing capacity to nearly triple with the new automated machines, which are expected to arrive and commence operation in February 2025. This is expected to decrease the overall unit cost of production due to limited requirement for human interaction.

The company continues to identify potential opportunities to further scale manufacturing capabilities as it expands delivery of high-quality merino wool products to new global markets, including through discussions with potential strategic partners to assist with distribution into target regions, such as China.