• Careteq sells its fully owned subsidiary Embedded Health Solutions to Nationwide Investments Holdings Pty Ltd
• Consideration received was $5m less customary purchase price adjustments, totaling ~$990k
• Net proceeds will be used to focus on growth of Careteq's marketplace platform HMR Referrals

Careteq Limited (ASX: CTQ) has announced the completion of the sale of its fully owned subsidiary, Embedded Health Solutions (EHS), to Nationwide Investments Holdings Pty Ltd. The Business and asset sale agreement entered into for the divestment of EHS was for $5m less customary purchase price adjustments, including working capital adjustments and employee entitlement liabilities for all transferring employees, amounting to approximately $990k. The net proceeds from the sale will be utilized to focus on the growth of Careteq's marketplace platform HMR Referrals, now that the Company's balance sheet has been relieved of a material liability and is better positioned to defend its position against the ATO and its current R&D claims whilst going through the formal objection process. As communicated when the sale was announced in February 2026, the disposal by a listed entity of its main undertaking can raise issues under ASX Listing Rule 12.1 and 12.2, which oblige a listed entity to satisfy ASX on an ongoing basis that the level of its operations is sufficient, and its financial condition adequate, to warrant its continued quotation of its securities. ASX has advised that Careteq will be afforded a period of 6 months from the date of the agreement of the disposal of its interest in EHS (by 6 August 2026) to demonstrate to the ASX that it is compliant with Listing Rule 12.1. If Careteq does not demonstrate compliance with this Rule to ASX's satisfaction by the 6-month anniversary, ASX will suspend trading in its securities.