Prenetics Divests ACT Genomics to Delta Electronics as Part of up to US$71.78 Million Transaction

Core Viewpoint - Prenetics Global Limited has announced the divestment of its majority stake in ACT Genomics to Delta Electronics for up to US$71.78 million, enhancing its financial position and focusing on high-growth consumer health brands [1][3][5] Financial Position - The divestment will provide Prenetics with approximately US$46 million in cash, increasing its pro-forma cash reserves to about US$86 million and pro-forma short-term assets to US$117 million, while maintaining a debt-free balance sheet [1][8][17] - Prenetics raised its FY2025 revenue outlook to US$80 – US$100 million from the previous US$73 – US$85 million, driven by the growth of its IM8 brand [5][6] Strategic Transformation - The divestment is part of Prenetics' strategic transformation to simplify its business model and enhance financial flexibility, allowing for accelerated growth in the consumer health market [3][11] - Prenetics now focuses on three consumer health brands: IM8, CircleDNA, and Europa, which are expected to synergistically enhance its market position [4][7][11] Market Performance - Prenetics' consumer health business has shown significant momentum, with Q1 2025 revenue of US$14.4 million, representing a 336.5% year-over-year increase, and a projected Q2 revenue of US$8.5 million [6][8] - The company has acquired over 55,000 customers and achieved a 91% subscription rate, indicating strong market demand [6][8] Innovation and Future Outlook - With a robust cash position, Prenetics is positioned to explore innovative treasury management strategies, including digital asset adoption and Bitcoin treasury strategies [10][11] - The company maintains a 35% stake in Insighta, valued at US$70 million, which adds significant value for shareholders [9]