Brain+ (BRAINP) Investor Update summary

Strategic Market Focus and Commercial Update

• Emphasis on U.K. market entry, leveraging new board observer Vishal Shah's expertise in care homes and social care policy to align with government priorities of community-based, preventative, and digital care.

• NHS England's restructuring shifts functions to DHSC, with ICBs required to cut management costs by 50%, emphasizing community-based care, prevention, and digital technology; this is expected to cause delays in national decision-making but validates the early pivot to care homes, reducing risk exposure to NHS procurement changes.

• The commercial strategy targets large, mid-tier, and small care home groups, using a SaaS annual license fee model per site, with a current sales pipeline of approximately GBP 430,000 (EUR 500,000/£427,500), prioritizing early low-value wins to evolve into larger multi-site contracts.

• About 20% of the sales pipeline (EUR 100,000) is in advanced stages, with a high conversion rate from sales-qualified leads to proposals; first care home contract win is in the process of closure.

• Initial U.K. contracts are limited pilots to build evidence and credibility, with a strategy to expand organically within accounts as data and outcomes are demonstrated.

Rights Issue and Financial Outlook

• Ongoing unit rights issue offers new shares and TO5 warrants, with a 50% guarantee and DKK 8 million in gross proceeds secured, including DKK 1 million from board and management; subscription price per unit is DKK 1.1289, with each unit comprising 53 shares and 53 warrants.

• TO5 warrants are exercisable in June 2025 at 70% of VWAP, with the price set between EUR 1 and just over EUR 3.

• Proceeds will fund U.K.-focused commercial execution, customer validation of the Ayla dementia care product, and revenue growth, supporting operations into July and potentially into 2026 with warrant exercise.

• Operational break-even requires DKK 10–13 million in net proceeds; full subscription and warrant exercise could provide up to DKK 40 million, making this potentially the last rights issue under the current model.

• Key dates: last day for shareholder response is 23 March 2025; subscription closes 28 March 2025; outcome published 2 April 2025.

Denmark and Pipeline Development

• Five Danish municipalities are under contract, with one multi-year extension and ongoing discussions for further multi-year deals; contracts currently cover limited sites but aim to scale CST delivery.

• Municipality negotiations underway for contract extensions; NHS engagements increasing with two new organizations.

• The company is the only medical device CST provider in the U.K. and the only professional commercial provider of digitally delivered CST, positioning it for leadership as the CST market grows.