Assisted-Living Tech Provider CARETEQ Raising $4m Ahead of IPO

Assisted-living technology innovator Careteq is tapping investors for $4 million in pre-IPO funding ahead of a planned listing in November.

The business, which has created a range of products including a radar-based sensor that providers continuous non-invasive monitoring to detect falls, movement patterns or if anyone else in the room as well as a mobile personal alert device, is calling for firms bids by Wednesday.

The offer apparently comes at a 20 per cent discount to its expected IPO price and will take the form of a convertible note, with the conversion to equity able to take place during the listing.

It also carries 6 per cent interest per annum.

Silver Cloud Advisory is advising Careteq, while HLW Ebsworth is the law firm involved.

The funds will be predominantly used to drive sales growth, support IPO preparation and working capital, fund product development, and the acquisition of medication management solutions company Ward MM.

Led by Peter Scala, Careteq generated $6.3m million in pro forma revenue for the 2021 financial year and has forecast $8.5 million in revenue for 2020 – representing a 35 per cent revenue growth rate.

Before tax, it recorded a $1.4 million loss in 2021.

Alium Capital owns 17.9 per cent of the business, board and management make up 9.7 per cent and Deakin University has a 7.8 per cent stake.