How Rewardle’s $100M CloudHolter Bet Could Reshape Its ASX Comeback
Rewardle Holdings has reinforced its strategic position by increasing its stake in CloudHolter following a $100 million capital raise, while progressing towards ASX relisting after resolving financial reporting delays.
- Positive operating cash flow of $2.1 million in June quarter
- Increased CloudHolter equity stake to 49.9% via $1.9 million fee-to-equity conversion
- CloudHolter’s $100 million valuation validated by sophisticated investors
- Outstanding financial accounts nearing completion to enable ASX relisting
- Expansion of Rewardle’s proprietary B2B2C platform and growth initiatives
Strategic Growth and Cash Flow Strength
Rewardle Holdings Limited (ASX – RXH) has reported a solid June quarter marked by positive operating cash flow of $2.1 million, continuing a 14-quarter streak of cash generation without the need for external capital. This operational strength underpins Rewardle’s ongoing reinvestment into growth initiatives, notably its partnership with CloudHolter, a fast-growing cardiac MedTech company.
Rewardle’s founder and Executive Chairman, Ruwan Weerasooriya, emphasised the company’s disciplined approach to deploying operating cash flow into ventures that promise long-term shareholder value. The June quarter saw cash receipts rise 17% to $5.5 million, driven by increased Growth Services fees and timely payments, while outgoing cash payments remained well-managed.
CloudHolter Investment Validated
A highlight of the quarter was CloudHolter’s successful capital raise at a revised valuation of $100 million, attracting sophisticated private investors and high net worth individuals. This milestone externally validates Rewardle’s strategic investment and the operational scale CloudHolter has achieved, partly through its Growth Services partnership with Rewardle.
Rewardle converted $1.9 million of service fees into equity during the quarter, increasing its stake in CloudHolter to 49.9%. While this remains a significant holding, contractual terms prevent Rewardle from acquiring a controlling interest. CloudHolter’s AI-driven software for ECG analysis and cardiac arrhythmia diagnosis positions it as a promising player in global MedTech, with potential to disrupt traditional diagnostic methods.
Progress Toward ASX Relisting
Rewardle’s shares have been suspended from trading due to delays in lodging audited financial statements, primarily because CloudHolter’s audited accounts, necessary for equity accounting, are outside Rewardle’s direct control. The company has since lodged its FY23 accounts and is working closely with auditors to finalize FY24 accounts, expected imminently.
Completion of these outstanding accounts will allow Rewardle to initiate the relisting process on the ASX, enabling the market to better reflect the value of its strategic investments, particularly in CloudHolter. The company remains focused on meeting regulatory deadlines and restoring investor confidence.
Expanding the Rewardle Platform
Beyond CloudHolter, Rewardle continues to develop its proprietary Business-to-Business-to-Consumer (B2B2C) software platform, integrating grocery delivery services with local membership, points, rewards, and payments. Beta testing of new merchant and member services aims to leverage the existing network to generate high-margin incremental revenue streams.
As CloudHolter internalizes more operations, Rewardle anticipates its Growth Services commitments will moderate, allowing the company to focus on expanding its portfolio of transactional, licensing, and equity positions in complementary businesses. Discussions with potential partners are underway to accelerate this venture capital-style growth strategy.
Bottom Line?
Rewardle’s upcoming ASX relisting and CloudHolter’s validated growth set the stage for renewed market interest and strategic momentum.
Questions in the middle?
- When exactly will Rewardle complete its FY24 accounts and achieve ASX relisting?
- How will CloudHolter’s AI-driven ECG technology impact Rewardle’s valuation and growth trajectory?
- What new partnerships or equity investments might Rewardle announce as it expands its venture portfolio?
