Federal stamp of approval creates opportunities in a turbulent time. FRISQ – the only digital solution that meets the requirements for the patient contract
During the first three months of the year we conducted an over-subscribed preferential rights issue of approximately 74.6 MSEK, as well as many business development initiatives with customers in Sweden and abroad. We also signed a letter of intent with Dartmouth-Hitchcock Medical Center, a prestigious academic hospital in the U.S. But the first quarter also brought with it macroeconomic challenges that few people could have imagined at the close of 2019, resulting in a major short-term shift in priorities. I am referring, of course, to the corona pandemic.
For us, the pandemic has required changes to our operations. Simply put, despite the ongoing and tense situation for our society, we are highly confident about the future and the need for a connected efficient healthcare system. Read more about our perspective on the pandemic in the operational update issued on April 29, 2020.
Working with the overburdened healthcare sector has required a specific type of responsiveness to our customers’ needs and capacity, and we have had to adapt our sales procedures and daily work accordingly. Some dialogues have been put on hold, while others have been accelerated due to the unequal burden the pandemic has placed on different areas of the healthcare system. We continue to work in accordance with the focus areas presented in conjunction with the share issue conducted earlier this year.
During the quarter we have seen regions undergo a digital mobili-zation to meet the new needs that have arisen. The Swedish Associ-ation of Local Authorities and Regions expects that this realignment will have lasting effects on the healthcare system and the pace of renewal within the public sector. In addition, the Swedish govern-ment’s official report, “Good quality, local healthcare”, presented in April, identified FRISQ as the only digital solution to date that meets the requirements for the “patient contract”, a fundamental component of the government’s healthcare strategy.
With major challenges facing society and healthcare, we look forward to taking an active part in the development of the healthcare system and effecting real change.
Martin Irding, FRISQ CEO
First quarter 2020
- Net revenue amounted to 0.6 MSEK (0.6)
- Earnings per share were SEK -0.8 SEK (-0.8)
- Cash-flow amounted to 45.2 MSEK (-20.2)
- Cash balance at the end of the period was 71.9 MSEK (21.5)
Events during the period
- Letter of Intent signed with Dartmouth-Hitchcock Medical Center relating to a standard licensing agreement.
- FRISQ conducted a fully guaranteed rights issue of 7 175 460 shares at a subscription price of 9.0 SEK per share with preferential rights for the Company’s existing shareholders. The rights issue was subscribed at approximately 120%. In addition, the Board chose to exercise the over-subscription option of 1 111 111 shares – in total representing an issue volume of approximately 74.6 MSEK.
- The AGM approved a warrant program and an associated rights issue of a maximum of 320,000 shares.
- A contract to use FRISQ Care was signed with the University of Lund.
- A Swedish Government report identified FRISQ as the only digital solution, to date, that meets the requirements of the “patient contract”.
- The US launch plans remain but are has shifted slightly in time as FRISQ’s initial customers and partners, by necessity, have refocused their near-term operations on the Covid-19 situation. OurS work will resume as soon as the U.S. market’s lock-down and travel restrictions permits.
- The company stands by its previously communicated guidance, but the Covid-19 pandemic and the difficulty of currently anticipating the duration or scope of the need for the health care sector to focus on emergency care, could have implications driving a revision of these goals when opportunities and consequences are more apparent.
- The focus on developing and scaling the product remains in line with the ambitions communicated during the recently conducted rights issue.
Upcoming financial reports
Publication dates for interim and full year reports for 2020:
- Second quarter report to be published on August 27, 2020
- Third quarter report to be published on November 12, 2020
- Full year report to be published on February 25, 2021
This publication is a translation of the original Swedish text. In the event of inconsistency or discrepancy between the Swedish version and this publication, the Swedish language version shall prevail.