• Business and asset sale agreement entered into for the divestment of EHS for $5m
• The sale will be subject to shareholders approval with an EGM proposed on 13 March 2026
• The sale of EHS will enable Careteq to recalibrate its balance sheet and focus on growing its HMR Referral market place platform

Careteq Limited (ASX: CTQ), a clinical healthtech company specialising in innovative medication management and clinical governance solutions, has entered into a binding sale agreement (SA) to divest its fully owned subsidiary, Embedded Health Solutions (EHS), to Nationwide Investments Holdings Pty Ltd (NIH) for $5 million (subject to customary purchase price adjustments). The sale will be subject to shareholders approval with an EGM proposed to be scheduled on 13 March 2026. The sale of EHS will enable Careteq to recalibrate its balance sheet and enable it to focus on growing its HMR Referral market place platform for home medication reviews in the home care sector. Embedded Health Solutions is a comprehensive medication management services business for residential aged care facilities, home care providers, and healthcare professionals. NIH will acquire the EHS business, including all related intellectual property, key employees, key clients, and brand assets. Careteq has undertaken due diligence on NIH and its shareholders to assess its financial and other capacity to perform its obligations under the SA. The Directors unanimously approve the proposed divestment and will recommend that shareholders vote in favour of the transaction in the absence of a superior competing proposal.

The sale of EHS will enable Careteq to recalibrate its balance sheet and better position the company to defend its position against the ATO and its current R&D claims whilst going through the formal objection process.