Brighter Reports First Quarter Interim Report January – March 2021

Brighter AB [publ], today has published first quarter interim report for January – March 2021. The full report is available on the company website https://brighter.se. The report is also attached to this press release as a pdf file.

Significant events during the period (highlights):

• Brighter’s diabetes management devices Actiste® and Actiste® Mini received market approval in Thailand
• Brighter received a remaining approval for consumables related to Actiste Service in the Kingdom of Saudi Arabia
• Brighter terminated its financing arrangement with Unwrap Finance and announced intentions to streamline operations, thus finding other investors in Camanio and Nectarine Health moving forward
• The board dismissed Henrik Norström as CEO and began the immediate search for a new CEO
• Christer Trägårdh will be acting CEO until the search is concluded
• Brighter signed 5-year distribution agreement for Actiste® and Actiste® Mini in Qatar
• Brighter carried out an over-subscribed unit issue of 121% and raising SEK 142 million
• Actiste® Mini received market approval from the Ministry of Health & Prevention in the UAE

Financial Overview:

• Net sales amounted to SEK 2,185 thousand (1,712)
• Operating result amounted to SEK -49,500 thousand (-38,047)
• Operating cash flow amounted to SEK -50,314 thousand (-63,158)
• Earnings before tax amounted to SEK –53,055 thousand (-37,573)
• Earnings per share, before and after dilution amounted to SEK -0.20 (-0.13)

For definitions, see note 11.

CEO Statement: A quarter with focus on streamlining operations and establishing a robust position for the continued journey.

The first quarter of the year was an intense period characterized by a wide range of activities, of which the successful capital acquisition and the commercial progress in Qatar were two of the most significant events. The rights issue, which was subscribed to 121% corresponding to approximately 142 MSEK, was a key component to be able to continue on the embarked route. The capital will enable Brighter to maintain the momentum and strength in our campaign to roll out our products in our initial target markets and to take full advantage of the commercial opportunities arising in the preparatory phase.

In the turn of the year and then later on in the quarter we achieved several important commercial milestones: the partnerships for the Nigeria and Ghana markets, as well as the Qatar region. These are very interesting opportunities in both short and long term. And in Nigeria and Ghana, we already agreed on initial order volumes which is a historic commercial shift for Brighter, closing in on its first Actiste revenues ever. This in itself is a huge step forward that we look forward to fulfilling.
Furthermore, the Group made regulatory progress on several fronts: both Actiste and Actiste Mini were approved in Thailand, Actiste Mini was approved in the UAE, some remaining approvals for consumables were granted in Saudi Arabia, and Nectarine Health received required FCC approvals in the US. The company makes further progress every day and although there has been some turbulence these past months, it’s very gratifying to see the teams’ hard work pay off, moving Brighter forward on its commercial journey at a steady pace.

One of the major focus areas during this quarter has been to implement the Board’s strategic direction in terms of increased focus on cost management and business priorities, as well as maintaining a disciplined culture of governance and control. This has been achieved through extensive internal screenings of operational processes and strategies and has already had a positive impact on the daily operations. Moreover, the Board has decided to streamline operations to be able to focus fully on Brighter's core business of data-driven and mobile-connected diabetes care. As a result, the company is exploring alternative ways of financing its subsidiaries Camanio and Nectarine Health with the aim to reduce the overall capital requirements – while also boosting the Actiste launch. Further on that note, one of the prioritized organisational goals is to decrease the number of consultants.

We have also seen a change in management during the quarter, following the events of last year and in line with the Board’s priorities. This has resulted in me stepping in as Acting CEO – instead of assuming the role of Chairman of the Board which was the initial plan from January 1st – while the company is searching for a long-term replacement. We are currently working actively to fill this role and look forward to doing so as soon as possible.

Meanwhile, the teams are working to solidify our new partnerships in Qatar, Nigeria and Ghana, as well as finalizing necessary preparations for our other priority markets. Although we have received market approvals, we still need to get certain things in place before we can go live, e.g. ensure data management compliance, finalize administration around cellular connectivity, establish the right partnerships and make sure that the organizational structure is in place. 

I would however like to emphasise that this does not prevent our pursuit of additional sales opportunities. We are constantly working to develop the relationships that can lead to more contracts and agreements.

Christer Trägårdh, Acting CEO and Board member

For further information, please contact:
Brighter Investor Relations
IR@brighter.se

Ann Zetterberg, CFO
ann.zetterberg@brighter.se

Certified Adviser
Brighter’s Certified Adviser is Eminova Fondkommission AB, +46 (0)8 – 684 211 10, adviser@eminova.se, www.eminova.se.

 
About Brighter AB (publ)
Brighter is a health-tech company from Sweden with a vision of a world where managing chronic diseases is no longer a struggle. We believe a data-centric approach is key to provide smarter care for chronic conditions. Our daily-care solutions are designed with a vision to facilitate the flow of real-life treatment data between chronic-disease patients, their loved ones and their care providers – aiming to improve quality of life, easing the burden on healthcare systems, and opening new opportunities for data-driven research. Brighter is certified under ISO 13485. In 2019 the company won the Swecare Rising Stars Award. The Company's shares are listed on Nasdaq First North Growth Market/BRIG. https://brighter.se/