☕️Strong Finish

Good morning.

Four tumultuous months after StrongRoom AI raised $17 million at a $70 million valuation, the startup's assets have been sold to pharmacist Joe Zhou for $3 million. Capital Brief reports that Zhou’s purchase was aided by EVP — the VC which invested $10 million in StrongRoom AI weeks before alleging it was defrauded by the startup – which lent him $1 million as part of the sale.

Zhou, a former customer of the startup, said he plans to “save the company and get everyone’s money back,” adding that its team, product and customers remain strong, “it was just financial mismanagement.”

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Market movers

Spare a thought for remaining Cettire investors.  Shares collapsed Thursday after the CEO warned of weaker demand in the US.

The quick sync

• As Bryony Evans and Suzy Madar write, the $397m sale of 23andMe’s genetic database shows why Australia urgently needs stronger laws to protect health data sent offshore. (Capital Brief)

• ProRata.ai circles Aussie publishers as it cashes in on the AI content grab reshaping global media. (Capital Brief)

• After a misdiagnosis and health crisis, ex-iflix CEO Mark Britt launches tmrw, an AI-driven preventive health startup combining biomarker testing with Humanli’s clinical model. (Capital Brief)

• Wall Street giants at the MS summit were split: is America still the safest bet for capital, or is the smart money moving to India and beyond? (Capital Brief)

Trading floor

M&A

• ACCC approves Allianz’s $642m RAA Insurance acquisition. (Capital Brief)

• New World Resources’ share price surged 8% above Central Asia Metals’ 5¢ bid, suggesting investor speculation or interest from another buyer in the copper explorer. (AFR)

• Joe Zhou buys StrongRoom AI for $3m, backed by $1m loan from investor EVP. (Capital Brief)

• Oaktree and Bain Capital are the final contenders for Perpetual’s wealth arm. (The Australian)

• Brookfield begins $428m sell-down of Dalrymple Bay Infrastructure at 7.9% discount. (AFR)

• Superloop unlikely to buy Aussie Broadband, despite reviewing major deals. (The Australian)

• Laurence Escalante’s bid for full control of VGW caught investors off guard due to delayed ASIC disclosures. (AFR)

Capital Markets

• Cochlear cuts profit outlook, unveils new smart implant system. (Capital Brief)

• WA1 Resources backers launch copper IPO Tali Resources after past niobium success. (AFR)

• Cettire reported a modest 1.7% sales rise to $693.1m for FY25 to date. (Capital Brief)

• GemLife nears $1.56b IPO finish with $25–$30m in shares on offer. (AFR)

• AGL Energy is reviewing its 20% stake in Tilt Renewables as part of a routine asset assessment, but says no sale discussions are currently underway. (Capital Brief)

• Escala’s PE owner moves to end staff’s 51% stake amid efforts to regain stability. (AFR)

• Westpac forecasts more RBA rate cuts due to easing inflation. (Capital Brief)

• Mighty Partners lends to Butn with option for equity stake at a premium. (AFR)

• Chime shares jump 66% after US$864m Nasdaq IPO. (Capital Brief)

VC

• None

People moves

• Resolute Mining’s COO Geoff Montgomery is stepping down, with Gavin Harris from AngloGold Ashanti appointed as his replacement. (Capital Brief)

• Monash IVF CEO quits after second embryo transfer error, prompting the appointment of CFO Malik Jainudeen as acting CEO. (Capital Brief)

• BWS boss Scott Davidson to step down in November after five years. (Capital Brief)

• Vocus names Andrés Irlando as CEO ahead of $5.25bn TPG deal. (Capital Brief)

The watercooler