On Friday afternoon Coala Life released its monthly KPIs for June:

We are pleased to note that Coala appears to have regained momentum and is back on the growth trajectory, despite the absence of patient growth during '23. Additionally, we are excited to note that ten new clinics were added during Q2'23, which we believe will make a significant contribution to the increase in patient stock growth in Q3. Although the Annual Recurring Revenue (ARR) was marginally lower than in May, this can be attributed to timing factors, specifically when patients were connected to the service. This suggests that the majority of new patients were added in the latter part of June.

In our latest research update, we raised concerns over the cash position and lagging cash recognition. We emphasized that if Coala fails to secure a short-term financing solution to address its working capital needs, it will likely be necessary to raise additional equity. Since then, Coala has signed an agreement for financing of trade receivables in the USA of up to USD4m. We are positive about the factoring solution but recognize that it will likely take time to access the full potential of USD4m. Further, Coala has the T01 warrants with an exercise period in September 2023, upon full exercise of the warrants, the Company will receive an additional approximately SEK13.7m –SEK38.5 m before deduction for transaction-related costs. The subscription price is based on the volume-weighted average trading price (VWAP) of the Company's share on Nasdaq First North Growth Market during a period of ten trading days starting on the 28th of August ’23.

The cash position of Coala Life will be significantly influenced by the two factors mentioned earlier. Therefore, we will conduct a review of our fair value range and rating. Once we have a clearer understanding of the financial outlook, we will provide an update.