Webrock Ventures AB (OM:WRV) signed an offer letter to acquire 44.50% stake in Vivabem Brasil AB from Cardo Health AB in a transaction valued at approximately SEK 320 million on June 12, 2024. Under the terms of letter, payment will be made by redeeming Webrock?s shares in Cardo. Vibe is valued at SEK 316 million in the Transaction. The Board of Directors in Cardo will offer the same opportunity to all its shareholders on a pro-rata basis. Through the Transaction, Webrock will, provided that no other shareholder in Cardo participates in the exchange of shares, obtain a significant and direct ownership stake (~44.5 percent) in Vibe, allowing Webrock to leverage its extensive experience, proven track record, and active local support in the Brazilian market to ensure Vibe?s success. Webrock has committed to maximizing its exchange of Cardo shares to Vibe shares in the Transaction, should other shareholders choose not to participate. To ensure long-term profitable growth for both Cardo and Vibe, Cardo and Webrock have agreed on payment through redeeming Cardo shares. Post completion of the acquisition, Vibe will obtain ownership rights to the AI-enabled technology developed by Cardo, which Vibe is currently using for its operations in Brazil. As part of the divestment, Cardo has agreed to eliminate its tech licensing and termination fees for Vibe. This will significantly extend Vibe?s runway and allow them to fully own a copy of the tech platform in Brazil with complete customization rights.

Provided that the Annual General Meeting in Cardo resolves on the Transaction end of June 2024, the Transaction is expected to be completed end of July 2024. Consequently, the Transaction will impact Webrock?s financial results by SEK -149.0 million for the period, but it will not affect the cashflow.