Careteq Raises $625,000 via Convertible Note and Board Loans
Careteq Limited has raised $625,000 through a convertible note from investor Antanas Guoga and loans from its board, strengthening its working capital position for the medium term.
- Convertible note of $500,000 from Antanas Guoga
- Board and company secretary loans totaling $125,000
- Convertible note matures June 2026 with 12% capitalised interest
- Conversion price set at $0.01 per share upon maturity or corporate events
- Funding aimed at supporting Careteq’s clinical healthtech operations
Strategic Capital Injection
Careteq Limited (ASX – CTQ), an Australian clinical health technology company, has secured a significant capital injection to bolster its working capital. The company announced a $500,000 convertible note agreement with Antanas Guoga, a well-known investor and former European parliamentarian, alongside $125,000 in loans from its board members and company secretary. This combined $625,000 funding package is designed to support Careteq’s ongoing operations and growth initiatives.
Convertible Note Details
The convertible note from Guoga carries a 12% annual interest rate, which is capitalised and added to the principal amount. It matures on 4 June 2026 and can convert into fully paid ordinary shares at a conversion price of $0.01 per share. Conversion can occur upon maturity or triggered by significant corporate events such as a trade sale or change of control. This structure offers Guoga potential equity upside while providing Careteq with flexible financing.
Board’s Confidence in Careteq
In a show of confidence, all board members, including Chairman Mark Simari and Non-Executive Directors Stephen Munday and Brett Cheong, as well as Company Secretary David Lilja, have collectively provided $125,000 in loans under similar terms. These loans also carry 12% interest capitalised to principal and mature alongside the convertible note. Such insider support often signals strong belief in the company’s prospects and commitment to its strategic direction.
Implications for Careteq’s Future
Careteq specialises in medication management and clinical governance solutions, aiming to improve healthcare outcomes through its Embedded Health Solutions and Home Medicines Review platforms. This fresh capital injection ensures the company is well-positioned financially to continue developing its healthtech offerings and potentially accelerate growth. However, investors should note the potential dilution risk if the convertible note converts into shares.
Looking Ahead
While the funding strengthens Careteq’s medium-term financial footing, the company’s next steps will be closely watched. Market participants will be interested in how this capital is deployed operationally and whether further strategic partnerships or growth milestones are achieved before the note’s maturity.
Bottom Line?
Careteq’s new funding round secures runway but sets the stage for potential equity dilution ahead.
Questions in the middle?
- How will Careteq allocate the $625,000 to drive growth or operational efficiency?
- What are the prospects for conversion events triggering equity issuance before June 2026?
- Will Antanas Guoga’s involvement lead to further strategic partnerships or investments?
