wellteq takes first steps into North America

WellteQ listed this week in Canada after a $9.8 million capital raising, the first step in its assault on the North American market.

Perth-founded technology company WellteQ listed this week in Canada after a $9.8 million capital raising, the first step in its assault on the North American market.

Wellbeing is big business, with corporate wellness projected to be a $US100 billion industry within five years.

As technology consumes more of our time, blurring the separation between work and home life, we have become less healthy. We need looking after.

More than that, many people feel they need a personal coach to make sure they are eating right, exercising enough, and sleeping well.

“We were looking to raise $5 million, but were six or seven times oversubscribed. People know they want to do something about their health, but often other things get in the way. So, our platform sends them little nudges and reminders, about exercise, about getting enough sleep.”

– Scott Montgomery, wellteq CEO

Wellness tech

WellteQ was founded in 2013 over a discussion at Steves in Nedlands and is now one of the leading providers of corporate wellness solutions in the Asia-Pacific region.

The company operates in more than 30 countries and in 12 languages.

After raising $1.2 million in seed funding, WellteQ moved to Singapore, while keeping an office in Perth and a development team in Melbourne.

This month, it listed on the Canadian stock market, raising $C9.5 million (ticker: WTEQ), equivalent to $A9.8 million.

“We were looking to raise $5 million, but were six or seven times oversubscribed,” co-founder and CEO Scott Montgomery told Business News.

“People know they want to do something about their health, but often other things get in the way. So, our platform sends them little nudges and reminders, about exercise, about getting enough sleep.”

The digital health platform synchs with users’ devices and deploys gamification, incentivisation, rewards and coaching to allow them to take control of their own health.

Rather than some reactive medical approach to tackling poor health outcomes, WellteQ aims to provide proactive, ongoing support and coaching to users.

WellteQ’s paying customers are insurers, employers and health providers who want to reduce behaviour-related health costs.

Results so far have shown that half of all users have reduced their stress levels, 28 per cent have increased their resilience, and one in three has reduced their alcohol intake.

In addition, 46 per cent say they wake up more refreshed than before they started using the service.

North America

With the Canadian listing and a merger with a medical internet of things business, the team of Mr Montgomery, Jeames Gillett (chief operating officer), Andrew Kerekes (chief product officer), and Olly Bridge (chief growth officer) plans to branch out into the clinical market in the next 12 months and take on North America.

The Canadian listing involved a reverse takeover of an oil and gas exploration shell, Terra Nova Resources, which was majority owned by some of WellteQ’s biggest shareholders.

Early backing came from Perth locals including John Poynton and Claremont-based venture capital firm 808 Ventures.

“I couldn’t be happier for Scott and the team at WellteQ,” 808 Ventures managing partner Gary Macbeth told Business News.

“Scott has demonstrated everything it takes as a startup CEO to always find a way.

“808 first invested in WellteQ in 2019, with follow-on contributions from its initial position to help fund the journey.”

Despite the move to Singapore in 2014, WellteQ considers itself an Australian company.

“The Australian ecosystem is, if anything, better than in Singapore,” Mr Montgomery said.

“For example, the R&D tax incentive is super helpful, in that it has been an accelerant for our research and development. It allowed us to have a go.”

While the listing is a great result for the WellteQ team and the investors, it could also be good news for the local startup scene more generally.

WellteQ’s success shows how strong tech startups can originate here, and step up to take on the world, returning capital to its early backers and inspiring others to have a go.

“The Canadian listing is about moving into North America,” Mr Montgomery said.

No doubt the WellteQ team will be spurred on by recent valuations of Nasdaq-listed wellness businesses Livongo Health (acquired for $US18.5 billion), WELL Health Technologies ($US1.4 billion market capitalisation) and CloudMD ($US450 million).

Post listing, WellteQ’s goals for the next year are to ramp up sales, marketing and R&D, launch a wearable device, and triple year-on-year growth.

This article is reposted from startupnews.com.au. View the original article here: https://startupnews.com.au/2021/05/09/wellteq-raises-9-8m-in-canadian-listing/

About wellteq Digital Health Inc.

wellteq Digital Health Inc. is a leading global provider of personalized digital health and wellness
solutions across the continuum of care.

To learn more, visit https://wellteq.co/

Download the wellteq Corporate Presentation:

wellteq Investor Contact:
Glen Akselrod
Bristol Investor Relations
E: glen@bristolir.com
T: (905) 326-1888

Cautionary Note Regarding Forward-Looking Statements:

This news release contains information or statements that constitute “forward-looking statements.” Such forward looking statements
involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or
developments to differ materially from the anticipated results, performance or achievements expressed or implied by such forwardlooking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified
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that events or conditions “will,” “would,” “may,” “could” or “should” occur.

Forward looking information may include, without limitation, statements regarding the operations, business, financial condition, expected
financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, milestones, strategies and outlook of
Wellteq, and includes statements about, among other things, future developments and the future operations, strengths and strategies of
Wellteq. Forward-looking information is provided for the purpose of presenting information about management’s current expectations
and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These
statements should not be read as guarantees of future performance or results.

The forward-looking statements made in this news release are based on management’s assumptions and analysis and other factors that
may be drawn upon by management to form conclusions and make forecasts or projections, including management’s experience and
assessments of historical trends, current conditions and expected future developments. Although management believes that these
assumptions, analyses and assessments are reasonable at the time the statements contained in this news release are made, actual results
may differ materially from those projected in any forward-looking statements. Examples of risks and factors that could cause actual
results to materially differ from forward-looking statements may include: the timing and unpredictability of regulatory actions; regulatory,
legislative, legal or other developments with respect to its operations or business; limited marketing and sales capabilities; early stage of
the industry and product development; limited products; reliance on third parties; unfavourable publicity or consumer perception; general
economic conditions and financial markets; the impact of increasing competition; the loss of key management personnel; capital
requirements and liquidity; access to capital; the timing and amount of capital expenditures; the impact of COVID-19; shifts in the demand
for Wellteq’s products and the size of the market; patent law reform; patent litigation and intellectual property; conflicts of interest; and
general market and economic conditions.

The forward-looking information contained in this news release represents the expectations of Wellteq as of the date of this news release
and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and
should not rely upon this information as of any other date. Wellteq undertakes no obligation to update these forward-looking statements
in the event that management’s beliefs, estimates or opinions, or other factors, should change.

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