Stockholm, September 27, 2021: Coala Life, a leader in the field of cloud-based remote patient monitoring of heart and lung diseases, is moving towards a future as a listed company, through a so-called reverse IPO process via an acquisition by RNB Retail and Brands AB (“RNB”) listed on Nasdaq in Sweden. The news, which was presented today, opens up new interesting opportunities for an intensified development of the business.
The transaction takes place as a reverse acquisition where Nasdaq-listed RNB acquires Coala Life through a non-cash issue of new shares. Coala Life’s shareholders will after the transaction own 80% of the listed company and RNB’s approximately 18,000 shareholders will after the transactions own about 20% of the company. In connection RNB will resolve debts and divest all its remaining operations, meaning that RNB is an empty company with a cash position of just over SEK 60 million. RNB will change its name to Coala-Life Group AB (publ) and change its listing from Nasdaq Stockholm’s main list to Nasdaq First North Growth Market.
“The rationale for the deal and going public is that we want to accelerate the development and commercializing efforts of our digital platform for remote monitoring and diagnostics of patients with heart and lung diseases. We have a unique market position and the transaction with RNB is a way to enter the stock market cost-effectively and quickly, while at the same time strengthening our financial position can increase the pace even more.”, says Dan Pitulia, CEO of Coala Life.
Coala Life intends to intensify the expansion of its sales organization with focus on the US markets. In RNB’s press release, Coala Life guided the market with an organic growth revenue target of SEK 250 million by year 2024, with a positive operating profit. The majority of revenues are expected to be generated in the US market and growth will take place with a maintained gross margin in excess of 80%.
Coala Life’s current Board of Directors is proposed to be elected as the new Board for Coala Life Group AB and Coala Life’s management team will remain with the listed company. The current CFO of RNB, Richard Roa, will take over from Alviva Stolpe as CFO of the new company.
Per Carendi, Coala Life’s chairman comments, ”Coala Life has developed a leading platform with a technical and market advantage, specifically focused on the US market with more than 100 million chronically ill heart patients. Coala Life’s system is now entitled to reimbursement within the US insurance system, creating conditions for rapid sales growth. The deal with RNB and the listing on Nasdaq now present an opportunity to accelerate commercialization with a broadened ownership base.”
Formally, the transactions are to be approved by RNB’s EGM on October 29. The Coala Life Group share is then planned to be listed on First North Growth Market around the first week of November.
For more info please contact
Philip Siberg, Co-founder, Chief Strategy Officer and Head of Investor Relations, +46 70 7906734, firstname.lastname@example.org
Dan Pitulia, CEO Coala Life AB, +46 70 972 08 38, email@example.com
About Coala Life:
Coala Life is a Swedish digital health venture focused on cardiac diagnostics and digital health. The company has developed a portfolio of patented CE- and FDA-cleared medical products and services for user-centered digital remote monitoring and analysis of the heart based on advanced and smart algorithms. Coala’s solutions enable analysis, remote monitoring, more effective cardiac assessments, and integrated care services, all in real time. Follow your Heart®. www.coalalife.com