PolarCool, concussion

PolarCool – spin-off from BrainCool


For some time now, BrainCool has repeated its intention to spin-off its sports medicine arm, PolarCool. The process is now on track! During autumn, PolarCool will be given to BrainCool’s investors on a tax-free basis.

The reason for spinning off PolarCool is that the there is a difference in customers. The focuses of BrainCool’s core business and sports medicine are different, the CEO Martin Waleij says. The main customers for BrainCool are the health care sector (hospitals, clinics, ambulances). Customers for PolarCool are professional sports clubs.

Concussion as prime focus for PolarCool

PolarCools focus is preventing damages in case of concussion. Concussions have attracted increasing attention. Lately there was huge focus after Loris Karius, the goalkeeper from Liverpool, played the Champions League final with a severe concussion. He made some grave faults during the match, which helped Real Madrid win the trophy.

PolarCap (which most readers will guess it the product from PolarCool) cools the head and makes the concussion damages less severe. Cooling the head after a blow lessens the risk of brain cells dying and shortens the time to recovery. In this light, there is no doubt that both a need and a potential market exists for a product of this type.

Research and tests

During the past two seasons, PolarCap have been medically tested in ice hockey in Sweden. A number of teams from both first and second league have participated. The results of these tests involving 40 players with concussion will be published in a medical journal.

Furthermore, Skåne University Hospital and a Malmoe American Football team is currently testing PolarCap. The researchers will conclude this research in autumn, when the season is over.

The players treated in both studies have answered questionnaires and they all tolerate the treatment well and find the cooling pleasant.

New shares on the account

BrainCool announced on Monday that more information on the process would come in June – that is in the next two weeks.

My take on the process is this. During summer, the current shareholders will receive shares proportional to their ownership in BrainCool. Probably a number of warrants for the up-coming IPO of PolarCool will follow. My guess that PolarCool will list on Spotlight Stock Market, which is the new name for Aktietorget. The new management of PolarCool will decide and communicate how much money the company will need.

It very much depends on how ready for market PolarCap is. I hope the main task for the new management will be a bring-to-market-task. If PolarCool needs more development, research, and documentation, it can be a lengthy process – and lengthy processes are expensive for the investors…

 How PolarCap becomes a business

In addition, the strategy of PolarCool will be of importance. Will PolarCool focus on one product waiting for a larger company to buy the whole company, or will it pursue new paths of sports cooling (eg. replacing the ice bags we often see players wear after a match)?

The dangers of the first strategy experiences Phase Holographic Imaging right now. The company focuses on one product and waits for the right buyer, while it documents the abilities of their product. The ongoing issue indicates that focusing alone on one product and documentation of the product does not attract the right buyers. The company needs to show that the market exists and that the product is able to penetrate it. On the other hand it is time consuming and expensive to develop, as I said. It is therefore important what path the new management takes.

Personally, I will take a closer look who will be the CEO and the board of directors along reading the strategy closely. The persons gives a clear indication of the prime focus of PolarCool. Do PolarCool go for sales or research? Personally, if sales are in focus I am much more willing to participate in the IPO!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.