Rewardle’s Relisting Hinges on CloudHolter Audits Amid Strong Growth Execution

Rewardle’s Growth Momentum

Rewardle Holdings Limited (ASX: RXH) has delivered another quarter of positive cash flow, generating $1.358 million from operations during the March quarter. This marks the 13th consecutive quarter of operational cash flow positivity, underscoring the company’s disciplined execution of its multi-dimensional growth strategy without the need for external capital.

The company continues to leverage its proprietary Business to Business to Consumer (B2B2C) software platform, focusing on expanding transactional, licensing, and equity partnerships. Rewardle’s approach is designed to create a compounding growth flywheel by reinvesting operational cash flow into strategic initiatives.

CloudHolter Partnership Driving Value

A centerpiece of Rewardle’s growth story remains its partnership and equity investment in CloudHolter Pty Ltd, a fast-growing MedTech company specializing in AI-powered ECG analysis and in-practice Holter monitoring services. CloudHolter recently raised capital at a $100 million valuation, reflecting its rapid scale and promising technology.

During the quarter, Rewardle converted $1.4 million of service fees into equity, increasing its shareholding in CloudHolter to 49.8%, with expectations to reach 49.9% through further conversions. This investment exemplifies Rewardle’s strategy of building a portfolio of complementary partner businesses that generate both cash flow and equity upside.

CloudHolter’s AI-driven diagnostic software aims to improve cardiac arrhythmia detection by offering faster, more accurate, and cost-effective solutions compared to traditional methods. The global potential of this technology positions CloudHolter, and by extension Rewardle, for significant long-term value creation.

Platform Development and Vertical Integration

Rewardle is also advancing the vertical integration of its grocery delivery services, part of its broader plan to commercialize its local membership, points, rewards, and payments platform. Beta testing of new merchant and member services is underway, targeting high-margin revenue streams that leverage Rewardle’s extensive merchant and member network across Australia.

This ongoing development complements the company’s Growth Services partnership model, which it aims to replicate with other businesses beyond CloudHolter, thereby expanding its transactional and equity portfolio.

Financial Reporting and ASX Relisting

Rewardle remains in the process of finalizing its outstanding audited financial statements, a prerequisite for resuming trading on the ASX. The delay has been primarily due to the need for audited financials from CloudHolter to support equity accounting treatments. CloudHolter has now completed its FY24 audit, enabling Rewardle’s auditors to progress with the company’s own reporting.

Management has expressed confidence in returning to timely reporting and relisting, which will better reflect Rewardle’s operational progress and growth potential in its share price. Meanwhile, the company continues to manage working capital prudently, including paying down accrued liabilities and director loans.

Founder and Executive Chairman Ruwan Weerasooriya emphasized the company’s commitment to growth, stating that Rewardle’s agile operating structure and diversified strategy position it well to capitalize on emerging opportunities without requiring additional capital injections.