Qlife Holding AB ("Qlife" or the "Company") has today received information that Qlife ApS's reconstructor will terminate the corporate restructuring. The board of directors has consequently today decided to file for bankruptcy for the subsidiary, Qlife ApS. On 4 April 2024, the Company announced that Qlife ApS was undergoing reconstruction to address creditor issues and to manage short-term liquidity. Since then, the Company has been seeking a long-term financing solution to facilitate the subsidiary's exit from reconstruction. As announced on June 6, 2024, the Company had entered into a non-binding term sheet with Atlas Special Opportunities LLC. However, due to e.g. (i) the outcome of the arbitration proceedings against Aidian, (ii) the decreased market value of Qlife, and (iii) the capital requirements for Qlife ApS, the parties are not able to reach a final agreement. Due to significant indebtedness, the cost structure, and the lack of a long-term financing solution, the board of directors, in consultation with the reconstructor, has determined that there is no sustainable path forward for Qlife ApS, and will declare Qlife ApS bankrupt. The listed parent company, Qlife, will continue its operations, and investigates a capital raise to create financial preconditions to submit an offer to acquire the assets from the estate and to secure sufficient working capital.
Today, the reconstructor, has concluded that there is no viable path to secure financing for Qlife's subsidiary, Qlife ApS. Consequently, the board of directors has decided to declare bankruptcy for Qlife ApS. Following this conclusion, the Company is currently devising a plan to acquire and to create the prerequisites for the business currently run by Qlife ApS to continue operating with long-term sustainable financing in Qlife. The preliminary plan includes the following:
- The wholly owned subsidiary Qlife ApS will be declared bankrupt. The bankruptcy applications will be filed within short.
- Qlife is seeking to make an offer to purchase the assets from the estate.
- A capital raise in Qlife is investigated to (i) finance an offer to acquire the assets from Qlife ApS and (ii) to secure its long-term operations.
Background and rationale
Since its inception, Qlife has invested hundreds of millions of SEK in its operating subsidiary Qlife ApS to develop and commercialize the patented product Egoo-Health. On 7 December 2023, Qlife announced that the Company had entered into a collaboration agreement with the industry-leading point-of-care diagnostics company, Hipro Biotechnology ("Hipro"). In accordance with the agreement, Hipro agreed to lead the regulatory process to secure approvals from the China Food and Drug Administration ("CFDA") for Egoo-Health. Hipro also agreed to cover the costs and lead the production, distribution, and sales of Egoo Health to Chinese hospitals. The agreement was projected to generate revenues between 300 and 500 million SEK upon full implementation, which was anticipated to occur within five years. Therefore, the board of directors believes that there are compelling reasons to continue operations in the Company and to attempt to acquire Egoo Health. The Company is currently in discussions with financial and legal advisors to raise capital with the intention of submitting an offer to repurchase the assets of the subsidiary.
For more information please contact:
Thomas Warthoe
Chief Executive Officer (CEO)
Phone: +45 21 63 35 34
E-mail: tw@egoo.health
This disclosure contains information that Qlife Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 19-07-2024 09:10 CET
Qlife is a Swedish company based in Helsingborg, which develops and markets an innovative medical technology platform, Egoo.Health ("Egoo"), with the goal of giving people access to clinical biomarker data when testing at home. The company is listed on the Nasdaq First North Growth Market (ticker: QLIFE). G&W Fondkommission is the Company's Certified Adviser. For additional information, please visit www.qlifeholding.com.
