Eevia Health (EEVIA) Status Update summary

Strategic focus and business model shift

• Transitioning from raw material-based products to proprietary, condition-specific bioactive solutions, with a primary focus on gut health and related areas like kidney and urinary microbiome health.

• Emphasizing scientific substantiation and health claims to differentiate from standard compendium extracts and meet regulatory requirements.

• Building a network of world-class scientific partners and leveraging both A and B-type proanthocyanidins for innovative gut health products.

• Channel strategy prioritizes practitioner brands, followed by direct-to-consumer and mainstream retail, aiming for sticky, benefit-driven products.

• Addressing over-reliance on a single compendium customer by shifting to high-margin, substantiated products and a diversified customer base.

Divestments and restructuring

• Divesting two business operations: Retinari (eye health, wood-based) to Havu Health, and berry-based products/manufacturing to Baccas Salus.

• Retinari targets age-related macular degeneration, with promising preclinical results and plans for further studies pending funding.

• Baccas Salus will relocate berry extract manufacturing to Lapland for cost and yield optimization, leveraging local funding and automation.

• Divestments aim to streamline operations, reduce costs, and allow each entity to specialize and pursue targeted funding.

• Shareholders will receive stakes in three focused companies: Eevia Health, Havu Health, and Baccas Salus.

Financial update and outlook

• 2023 saw a drop in revenue and negative EBITDA after previous growth; 2024 is a transition year focused on cost-cutting and stabilization.

• Targeting €3 million revenue and slightly positive EBITDA in 2025, with a focus on rebuilding revenue growth and achieving cash flow positivity.

• Rights issue underway to raise over SEK 12 million, with additional funding sought from public and private sources.

• Debt reduction and improved financial stability are key goals, with actions including equipment and inventory sales, and a debt-to-equity swap.

• Divestments and new strategy expected to unlock value and create multiple growth triggers for shareholders.