Heartbeats Limited (HBT), an unlisted public company and the 100% owner of CloudHolter Pty Ltd, is opening a new funding round based on Convertible Notes.

CloudHolter provides in-practice cardiac testing to Australian GPs on a 100% bulk billed basis. The business now reports an annualised revenue run rate above $17m and cash flow positive operations, and is targeting a $20m run rate in the coming months.

The Convertible Note round replaces the previous Pre-IPO share offer, which has closed. HBT believes Convertible Notes are a better fit while the timing of its ASX listing remains uncertain. The round will also help build the shareholder spread and free float needed for a future IPO.

This funding round is based on a share price of $1.00 per share (approximately $220m), the same basis used for the Bonus Share Issue to existing investors. HBT is commissioning an updated Independent Valuation Report to support future capital raising pricing.

The issue price, interest rate, maturity, conversion terms, raise size and timetable will be set out in the term sheet. Full terms will be published on this page when the offer documents are finalised.

The round is intended for GPs, cardiologists, partners and supporters of CloudHolter, as well as eligible wholesale investors.

Day-to-day operations remain on track. Record daily and weekly referral levels in October lifted the annualised revenue run rate above $17m, with a target of $20m in the coming months.

Recent growth in referral volumes has made operations cash flow positive, including the one-off upfront costs of growing the partner GP clinic network.

To scale further, CloudHolter is simplifying legacy processes and using system automation and AI to do more with less. It is also moving from contract staffing to internal roles, which is expected to improve operating leverage as revenue grows.

Bittium is the Finnish manufacturer of the Holter device CloudHolter uses. It is listed on the Helsinki Stock Exchange with a market capitalisation of approximately €1.2 billion (A$2 billion).

CloudHolter has worked with Bittium for many years. Bittium has agreed to CloudHolter's proposal to extend the partnership and help it scale faster. In the short term, the arrangement supports growth. In the longer term, it strengthens CloudHolter's position for any future strategic investment discussions.

Reaching cash flow positive operations gives HBT more scope to consider options alongside an IPO, including private equity or strategic investment, a possible secondary sale for existing shareholders, or a trade sale. It is too early to say how or when any of these would occur.

HBT was incorporated in November 2025, and has subsequently acquired 100% of the issued shares in Cloudholter in preparation for an ASX listing in coming months.

CloudHolter is a fast-growing MedTech business that is leveraging its innovative, in- practice cardiac testing services to develop AI-powered software for ECG analysis to diagnose heart rhythm issues.

The business was founded in 2020 (during the Covid-19 pandemic) by Professor Rukshen Weerasooriya, a Perth based cardiologist and subspecialist cardiac electrophysiologist specialising in the treatment of heart rhythm disorders whose bio is included in the Key Management and Board section. 

CloudHolter provides Australian general practitioners (GPs) with innovative, in-practice cardiac testing services that use the latest technology to provide patients with fast, high-quality cardiac testing that is 100% bulk billed from the convenience of local GP rooms.

While CloudHolter commenced operations based on its in-practice Holter monitoring service, it has since broadened its service offering to include ECG testing and Telehealth consultations which align with the typical patient diagnostic journey. 

In addition to generating operating cash flow, CloudHolter’s cardiac testing workflows have been designed to precipitate labelled data for use in research and development activities associated with machine learning (ML) and artificial intelligence (AI) software development. 

CloudHolter is using its growing repository and stream of proprietary labelled data from its testing services to develop AI-powered software for ECG analysis to diagnose heart rhythm issues. 

Such AI diagnostic software - subject to appropriate regulatory approvals - has the potential to be faster, more accurate and more cost-effective than current manual practices and may be implemented internally by CloudHolter to improve service efficiency and profitability and could potentially be licensed globally for use in a variety of clinical/commercial applications.

CloudHolter addresses the significant instance of patients presenting with palpitations in General Practice medicine in Australia, supporting GPs to diagnose heart rhythm issues efficiently and confidently via a bulk billed business model where there are no costs to either the GP practice or the patient.

There is a growing need for cardiac testing due to a number of factors including but not limited to the aging population which is driving an increased prevalence of heart rhythm issues and cardiovascular disease, improvements in diagnosis and treatment options, greater clinical emphasis on early detection and consumer adoption of wearable devices such as the Apple Watch that detect heart rhythm anomalies.

The Holter testing market in Australia represents a large and growing segment of cardiac diagnostics. Based on Medicare statistics, Holter testing in Australia has experienced a compound annual growth rate (CAGR) of over 8% over the past 20 years with 510,469 Holter tests performed through Medicare during the CY25 representing approximately $85m in rebates paid by Medicare to providers of Holter testing services. 

Since its founding approximately 5 years ago, Cloudholter has captured a significant and growing share of the Holter testing market by disrupting the traditional cardiac testing models — historically delivered through pathology labs and cardiology practices.

CloudHolter has created an “Uber Vs Taxi” style dynamic for Holter testing by using the latest technology and working with Australian general practices to empower GPs to provide cardiac testing directly within their practices.

Partner GPs benefit from a streamlined, technology-enabled cardiac testing services which are integrated directly into their practice, while patients gain access to enhanced standards of cardiac diagnosis and management that is 100% bulk billed and delivered conveniently through their trusted local GP.

While CloudHolter initially launched based on its in-practice Holter monitoring service, it has since extended its service offering to also include ECG testing and Telehealth services.

In addition to generating operating cash flow with attractive gross margins, CloudHolter’s testing workflows have been designed to precipitate labelled data for use in research and development activities associated with machine learning (ML) and artificial intelligence (AI) software development.

CloudHolter has achieved remarkable market penetration, gaining a network of over 2,600 clinics and over 3000 unique GP's across the country already, out of the roughly 10,000 practices in Australia.

CloudHolter referrals have grown steadily each year since 2020, reflecting consistent uptake and expanding clinical adoption.

CloudHolter’s Holter monitoring is covered by a Medicare rebate at no cost to the GP clinic or patient, with demand continuing to grow due to Australia’s ageing population and the Medicare rebate being indexed annually to help keep pace with rising costs.

Timing is critical in cardiac testing

Delays in diagnosis can have serious consequences. Traditional approaches are often too slow to detect intermittent or subtle rhythm abnormalities, leaving patients at risk. Undiagnosed cardiac rhythm issues can lead to sudden loss of consciousness, which may result in accidents, permanent disability, or even death.

Traditional cardiac testing is often slow, with patients facing inconvenient travel to clinics and uncomfortable legacy Holter devices that are difficult to wear. Historically, patients have also been charged additional fees for Holter testing, creating friction and hesitancy that can delay critical diagnosis and treatment.