Healthcare Triangle Announces $6.5 Million Private Placement

Rhea-AI Summary

Healthcare Triangle Inc. (HCTI) announced a definitive agreement for a private placement, issuing 6,097,561 shares of common stock at a price of $1.066 per share, aiming to raise approximately $6.5 million. The placement involves unregistered investment options for the same number of shares, exercisable after six months. H.C. Wainwright & Co. is the exclusive placement agent. Proceeds will be used for working capital and corporate purposes. The transaction is set to close around July 13, 2022, subject to customary conditions.

Positive

• HCTI is raising approximately $6.5 million through a private placement.
• The company plans to use the funds for working capital and corporate purposes.
• Investment options provided are for up to 6,097,561 shares.

Negative

• The securities are unregistered and cannot be offered in the U.S. without SEC registration or exemption.
• Potential dilution of existing shareholders due to the issuance of new shares.

PLEASANTON, Calif., July 11, 2022 (GLOBE NEWSWIRE) -- Healthcare Triangle Inc., (Nasdaq: HCTI) (“HCTI” or the “Company”), a leading provider of cloud and data transformation solutions for healthcare and life sciences, today announced that it has entered into a definitive agreement with a single institutional investor for the issuance and sale of 6,097,561 shares of common stock (or common stock equivalents in lieu thereof) in a private placement. The Company will also issue to the investor unregistered preferred investment options (the “investment options”) to purchase up to an aggregate of 6,097,561 shares of common stock. The purchase price for one share of common stock (or common stock equivalent) and one investment option to purchase one share of common stock is $1.066. The investment options have an exercise price of $1.066 per share, will become exercisable six months following issuance date, and will have a term equal to five years following the issuance date. The private placement is expected to close on or about July 13, 2022, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds from the private placement are expected to be approximately $6.5 million, before deducting placement agent fees and other offering expenses. The Company intends to use the net proceeds from the private placement for the working capital and other general corporate purposes.

The securities offered in the private placement and described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”) and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements. Pursuant to a registration rights agreement with the investor, the Company has agreed to file one or more registration statements with the SEC covering the resale of such securities.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Healthcare Triangle, Inc. (HCTI)

Healthcare Triangle, Inc. based in Pleasanton, California., reinforces healthcare progress through breakthrough technology and extensive industry knowledge and expertise. We support healthcare providers including hospitals and health systems, payers, and pharma/life sciences organizations in their effort to improve health outcomes. Healthcare Triangle enables the adoption of new technologies, data enlightenment, business agility, and response to immediate business needs and competitive threats. The highly regulated healthcare and life sciences industries rely on Healthcare Triangle for expertise in digital transformation encompassing the cloud, security and compliance, data lifecycle management, healthcare interoperability, and clinical and business performance optimization. Visit www.healthcaretriangle.com

Forward-Looking Statements

All statements other than statements of historical facts included in this press release are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995), and include, among others, statements regarding the consummation of the private placement, satisfaction of the customary closing conditions of the private placement and the use of the proceeds therefrom. Such forward-looking statements include our expectations and those statements that use forward-looking words such as "projected," "expect," "possibility" and "anticipate." The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions, including market and other conditions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 on file with the Securities Exchange Commission (the “SEC”) and in previous filings, subsequent filings and future periodic reports filed with the SEC. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.

Healthcare Triangle, Inc. Contact:

Michael Campana - michael.c@healthcaretriangle.com

FAQ

What is the purpose of the private placement by HCTI?

HCTI aims to raise approximately $6.5 million for working capital and other corporate purposes.

When is the private placement expected to close?

The private placement is expected to close on or about July 13, 2022.

What is the price per share for HCTI's private placement?

The price per share is $1.066.

Who is the placement agent for HCTI's offering?

H.C. Wainwright & Co. is acting as the exclusive placement agent.

What are the implications of the unregistered securities issued by HCTI?

The unregistered securities cannot be offered or sold in the U.S. without proper registration or exemption.