OneMedNet Announces $4.6 Million Private Placement

Rhea-AI Summary

OneMedNet (Nasdaq: ONMD), a leading curator of regulatory-grade Real World Data, has announced a $4.6 million private placement with institutional investors, including affiliates of Off the Chain Capital and Discovery Capital Management. The placement closed on July 25, 2024, with the company selling shares at prices meeting Nasdaq's minimum requirements. OneMedNet plans to use the net proceeds for working capital and general corporate purposes, with $1.8 million already allocated to purchase Bitcoin. The private placement involved the sale of common stock and pre-funded warrants, with the company agreeing to file a registration statement for the resale of the issued shares and those underlying the warrants.

Positive

• Raised $4.6 million in gross proceeds through private placement
• Attracted institutional investors, including affiliates of Off the Chain Capital and Discovery Capital Management
• Share price meets Nasdaq's minimum price requirement
• Allocated $1.8 million to purchase Bitcoin, potentially diversifying assets

Negative

• Dilution of existing shareholders due to issuance of new shares and warrants
• Potential volatility risk associated with Bitcoin investment

Insights

Financial Analyst

OneMedNet's recent $4.6 million private placement is a significant development for the company, particularly given its current market position. The involvement of institutional investors like Off the Chain Capital and Discovery Capital Management lends credibility to the offering. However, the use of $1.8 million to purchase Bitcoin is an unconventional move for a healthcare data company, potentially signaling a shift in treasury management strategy or an attempt to hedge against inflation.

The offering structure, with a mix of common stock and pre-funded warrants at different price points ($1.0278 and $0.85 per share), suggests a negotiated deal tailored to investor preferences. This could indicate varying levels of confidence or risk appetite among the participants. The pricing meets Nasdaq's minimum requirements, which is important for maintaining listing compliance.

While the capital raise strengthens OneMedNet's balance sheet, investors should note that the issuance of new shares and potential exercise of warrants will lead to dilution. The company's decision to file a registration statement for resale suggests a potential for near-term selling pressure once the shares become freely tradable.

Overall, this financing provides OneMedNet with additional runway, but the unconventional Bitcoin purchase and the dilutive nature of the offering may raise questions about the company's long-term strategy and capital efficiency.

Tech Expert

OneMedNet's position as a curator of regulatory-grade Real World Data (RWD) places it at the intersection of healthcare and technology. The company's unique inclusion of medical imaging data in its RWD offerings sets it apart in the competitive health tech landscape. This private placement could potentially accelerate OneMedNet's data curation capabilities or expand its technological infrastructure.

However, the decision to allocate $1.8 million to Bitcoin is intriguing and somewhat perplexing. While some tech companies have embraced cryptocurrencies as a treasury management tool, it's an unusual move for a healthcare data firm. This could be seen as a hedge against inflation or an attempt to diversify assets, but it also introduces volatility and regulatory risks that are atypical for the healthcare sector.

The company's focus on regulatory-grade data suggests a commitment to quality and compliance, which is important in the heavily regulated healthcare industry. As artificial intelligence and machine learning continue to transform healthcare, high-quality, diverse datasets like those offered by OneMedNet become increasingly valuable. The additional capital could potentially be used to enhance data processing capabilities, improve AI algorithms, or expand the types of data curated.

Investors should watch for how OneMedNet leverages this capital to strengthen its technological moat and whether the Bitcoin investment proves to be a savvy move or a distraction from its core business in the rapidly evolving health tech landscape.

Market Research Analyst

OneMedNet's private placement reflects growing investor interest in the Real World Data (RWD) market, which is projected to experience significant growth in the coming years. The healthcare industry's shift towards evidence-based decision-making and personalized medicine is driving demand for high-quality, diverse datasets like those offered by OneMedNet.

The participation of institutional investors, including affiliates of Off the Chain Capital and Discovery Capital Management, suggests confidence in OneMedNet's market position and growth potential. However, the varying share prices ($1.0278 and $0.85) in the agreements may indicate differing valuations or negotiation strategies among investors.

OneMedNet's unique offering of medical imaging data alongside electronic health records and laboratory results positions it well in the competitive RWD landscape. This comprehensive approach could be particularly valuable for research in fields like radiology, oncology and neurology, where imaging plays a important role.

The decision to allocate $1.8 million to Bitcoin is an unexpected move that could be seen as a hedge against inflation or an attempt to appeal to tech-savvy investors. However, it also introduces volatility and potential regulatory scrutiny that may concern more conservative healthcare investors.

As the RWD market continues to evolve, OneMedNet's ability to leverage this new capital to expand its data offerings, improve data quality and enhance its technological capabilities will be important in maintaining and growing its market share in this competitive and rapidly changing industry.

Institutional investors include affiliates of Off the Chain Capital and Discovery Capital Management

MINNEAPOLIS, July 26, 2024 (GLOBE NEWSWIRE) -- OneMedNet Corporation (Nasdaq: ONMD) (“OneMedNet” or the “Company”), the leading curator of regulatory-grade Real World Data ("RWD"), inclusive of electronic health records, laboratory results and, uniquely, medical imaging, today announced that it has entered into securities purchase agreements with certain institutional investors, including an affiliate of Off the Chain Capital and an affiliate of Discovery Capital Management, in a private placement that resulted in gross proceeds of approximately $4.6 million, before deducting fees and expenses payable by the Company. The private placement closed on July 25, 2024. The price per share of common stock sold in this offering meets the minimum price requirement under Nasdaq rules. The Company intends to use the net proceeds from the private placement for working capital and general corporate purposes. Pending use of the funds, the Company used $1.8 million of the net proceeds to purchase Bitcoin ($BTC).

Pursuant to the terms of the securities purchase agreement with an affiliate of Off the Chain Capital, OneMedNet sold an aggregate of 1,297,059 shares of its common stock at a price of $1.0278 per share and pre-funded warrants exercisable for 1,323,530 shares of its common stock at an exercise price of $1.0278 per share. The investor prepaid the exercise price for the pre-funded warrants, other than $0.0001 per share.

Pursuant to the terms of the securities purchase agreement with an affiliate of Discovery Capital Management, OneMedNet sold an aggregate of 2,301,791 shares of its common stock at a price of $0.85 per share.

The offer and sale of the securities in the private placement and described above are being made in a transaction not involving a public offering and the securities have not been registered under the Securities Act of 1933, as amended, and may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Pursuant to registration rights agreements, OneMedNet agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issued in this private placement and the shares of common stock underlying the pre-funded warrants.

This press release shall not constitute an offer to sell or a 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 OneMedNet Corporation

OneMedNet provides innovative solutions that unlock the significant value contained within the Real-World Data (“RWD”) repositories of over 1,400 healthcare system and provider sites that currently comprise its iRWD™ network. OneMedNet’s proprietary iRWD™ platform provides secure, comprehensive management of diverse clinical data types, including electronic health records, laboratory results, and uniquely, medical imaging. Employing its robust iRWD™ platform, the Company securely de-identifies, searches, and curates the clinical data, bringing a wealth of internal and third-party research opportunities to its drug, medical device and imaging/diagnostic AI development customers.

OneMedNet’s platform is designed to meet the clinical requirements necessary across various domains, including but not limited to rare diseases, oncology and cardiology. The Company is committed to delivering precise and robust research support services that span the entire continuum of care. This commitment is a cornerstone of OneMedNet’s strategy to enhance patient outcomes and help pave the next wave of healthcare innovation. For more information, please visit www.onemednet.com.

About Off the Chain Capital

Off the Chain Capital is the general partner and manager of Off the Chain, LP. The Firm utilizes a value approach to invest in digital assets and equity in blockchain companies with a goal of acquiring at a discount to their intrinsic value. This strategy is designed to provide downside protection without sacrificing upside, making it an option for family offices, endowments, foundations, and first-time investors in blockchain assets.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; our business prospects and opportunities; and our use of the net proceeds from the private placement, including whether we will purchase Bitcoin or any other digital assets and the holding period for any such purchases. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of OneMedNet; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

OneMedNet Contacts:

Stephen Kilmer, Investor Relations
Phone: 647.872.4849
Email: stephen.kilmer@onemednet.com

Michael Wong, Director of Marketing
Phone: 800.918.7189
Email: michael.wong@onemednet.com

Off the Chain Capital Contact:
Brian Dixon, CEO
LP@OfftheChain.Capital

Discovery Capital Management Contact:
Robert Citrone, Founder

SOURCE: ONEMEDNET CORPORATION

FAQ

How much did OneMedNet (ONMD) raise in its recent private placement?

OneMedNet (ONMD) raised approximately $4.6 million in gross proceeds through its recent private placement, which closed on July 25, 2024.

Who were the main investors in OneMedNet's (ONMD) private placement?

The main investors in OneMedNet's (ONMD) private placement included institutional investors, specifically affiliates of Off the Chain Capital and Discovery Capital Management.

What does OneMedNet (ONMD) plan to do with the funds raised?

OneMedNet (ONMD) intends to use the net proceeds from the private placement for working capital and general corporate purposes. Additionally, the company has already allocated $1.8 million to purchase Bitcoin.

What types of securities did OneMedNet (ONMD) offer in the private placement?

OneMedNet (ONMD) offered common stock and pre-funded warrants in the private placement. The company sold shares of common stock and pre-funded warrants exercisable for shares of common stock.