New Risk • May 15
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 194% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Shareholders have been substantially diluted in the past year (194% increase in shares outstanding). Market cap is less than US$10m (AU$8.72m market cap, or US$6.29m). Announcement • Apr 09
Renato Del Monaco completed the acquisition of Embedded Health Solutions Pty Ltd from Careteq Limited (ASX:CTQ). Renato Del Monaco entered into a binding sale agreement to acquire Embedded Health Solutions Pty Ltd from Careteq Limited (ASX:CTQ) for AUD 4 million on February 6, 2026. A cash consideration of AUD 4.01 million will be paid by Renato Del Monaco and is subject to customary purchase price adjustments. Renato Del Monaco will purchase all of the assets that comprise the EHS business, including all related intellectual property, key employees, key clients, and brand assets. Title and ownership of the assets will pass from Careteq Limited to Renato Del Monaco. The proceeds from the sale are intended to be utilized to focus on the growth of the Careteq’s platform HMR Referrals, 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 with the ATO.
The transaction has been unanimously approved by the board of directors of Careteq Limited. The transaction is subject to Careteq Limited's shareholders approval with an EGM proposed to be scheduled on March 13, 2026.The expected completion of the transaction is March 20, 2026. As of March 13, 2026, the deal has been approved by the shareholders of Careteq Limited.
Renato Del Monaco completed the acquisition of Embedded Health Solutions Pty Ltd from Careteq Limited (ASX:CTQ) on April 9 2026. New Risk • Mar 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 25% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Market cap is less than US$10m (AU$2.37m market cap, or US$1.66m). Minor Risk Shareholders have been diluted in the past year (25% increase in shares outstanding). 
