Syra Health Announces Pricing of $2.1 Million Public Offering

Rhea-AI Summary

Syra Health Corp. (NASDAQ: SYRA) has announced the pricing of a $2.1 million public offering. The offering includes 3,203,125 shares of Class A common stock, along with Series A and Series B warrants to purchase additional shares. Priced at $0.64 per share and accompanying warrants, the offering is expected to close around September 13, 2024. If all warrants are exercised, it could generate an additional $4.1 million. Rodman & Renshaw is the exclusive placement agent. Syra Health plans to use the proceeds for marketing, sales, application development, research, and general corporate purposes. The offering is made pursuant to an effective SEC registration statement.

Positive

• Potential to raise up to $6.2 million if all warrants are exercised
• Funds allocated for marketing, sales, and R&D, potentially driving growth
• Successful registration and pricing of public offering

Negative

• Significant dilution for existing shareholders
• Low offering price of $0.64 per share may indicate weak market perception
• No assurance that warrants will be exercised, potentially limiting additional capital

Financial Analyst

Syra Health's $2.1 million public offering, priced at $0.64 per share, signals potential financial strain. The low share price and inclusion of warrants suggest challenges in raising capital. If all warrants are exercised, an additional $4.1 million could be raised, but this is uncertain. The dilutive effect of issuing 3,203,125 new shares may negatively impact existing shareholders. The company's need for funds across various operations indicates possible cash flow issues. Investors should scrutinize Syra Health's financial health and growth prospects carefully before considering this high-risk investment.

Market Research Analyst

This offering reflects broader trends in the healthcare technology sector, where many companies are struggling to secure funding in a tightening market. The low pricing and warrant structure suggest investor skepticism about Syra Health's near-term prospects. However, the focus on "meaningful solutions" in healthcare tech aligns with industry demand. The success of this offering and subsequent warrant exercises will largely depend on Syra's ability to demonstrate tangible progress in product development and market penetration. Keep an eye on how effectively they utilize this capital for growth initiatives.

Legal Expert

The offering's structure, combining common stock with two series of warrants, is complex but not uncommon for smaller cap companies. The SEC's swift approval of the S-1 registration (File No. 333-281583) on the same day as pricing announcement is noteworthy. Investors should carefully review the final prospectus for full risk disclosures. The company's statement about warrant exercise proceeds is appropriately cautious, avoiding potential legal issues. Syra Health's compliance with SEC regulations in this offering appears sound, but as always, investors should conduct their own due diligence.

CARMEL, Ind., Sept. 11, 2024 /PRNewswire/ -- Syra Health Corp. (NASDAQ: SYRA), ("Syra Health" or the "Company"), a healthcare technology company powering better health by providing meaningful solutions, today announced the pricing of a public offering of an aggregate of 3,203,125 shares of its Class A common stock, Series A warrants to purchase up to 3,203,125 shares of Class A common stock and Series B warrants to purchase up to 3,203,125 shares of Class A common stock (all the warrants, collectively, the "Series Warrants"), at a combined public offering price of $0.64 per share  and accompanying Series Warrants. The Series Warrants will have an exercise price of $0.64 per share and will be exercisable immediately upon issuance. The Series A warrants will expire on the eighteen-month anniversary of the initial issuance date and the Series B warrants will expire on the five-year anniversary of the initial issuance date. The closing of the offering is expected to occur on or about September 13, 2024, subject to the satisfaction of customary closing conditions.

Rodman & Renshaw LLC is acting as the exclusive placement agent for the offering.

The aggregate gross proceeds to the Company from the offering are expected to be approximately $2.1 million before deducting the placement agent's fees and other offering expenses payable by the Company. The potential additional gross proceeds to the Company from the Series Warrants, if fully exercised on a cash basis, will be approximately $4.1 million. No assurance can be given that any of the Series Warrants will be exercised. The Company intends to use the net proceeds from this offering for marketing and sales, application development, research and development and for general corporate purposes, including working capital, operating expenses, and capital expenditures.

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-281583), which was declared effective by the Securities and Exchange Commission (the "SEC") on September 11, 2024. The offering is being made only by means of a prospectus forming part of the effective registration statement relating to the offering. A preliminary prospectus relating to the offering has been filed with the SEC and a final prospectus relating to the offering will be filed with the SEC. Electronic copies of the final prospectus, when available, may be obtained on the SEC's website at http://www.sec.gov and may also be obtained, when available, by contacting Rodman & Renshaw LLC at 600 Lexington Avenue, 32nd Floor, New York, NY 10022, by telephone at (212) 540-4414, or by email at info@rodm.com. 

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, 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 SYRA HEALTH

Syra Health is a healthcare technology company powering better health in challenging areas such as behavioral and mental health, digital health, and population health, by providing innovative services and technology products. Syra Health's offerings are centered on prevention, improved access, and affordable care. Syra Health supplies its solutions to payers, providers, life sciences organizations, academic institutions, and the government. For more information, please visit www.syrahealth.com. 

Forward-Looking Statements

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include, but are not limited to, statements regarding the completion of the offering, the satisfaction of customary closing conditions related to the offering, the anticipated use of proceeds therefrom, the exercise of the Series Warrants prior to their expiration, the Company's operations and business strategy, and the Company's expected financial results. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty, changes in circumstances and market and other conditions. Investors should read the risk factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and other periodic reports filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and, except as required by federal securities laws, the Company specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:

For Investor or Media Inquiries:
Syra Health
IR/PR and Marketing Director
Christine Drury
317-385-9227 
christined@syrahealth.com 

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SOURCE Syra Health

FAQ

What is the size and price of Syra Health's (SYRA) public offering announced on September 11, 2024?

Syra Health (SYRA) announced a $2.1 million public offering priced at $0.64 per share and accompanying warrants, including 3,203,125 shares of Class A common stock and Series A and B warrants to purchase additional shares.

When is the expected closing date for Syra Health's (SYRA) public offering?

The closing of Syra Health's (SYRA) public offering is expected to occur on or about September 13, 2024, subject to customary closing conditions.

How does Syra Health (SYRA) plan to use the proceeds from its September 2024 public offering?

Syra Health (SYRA) intends to use the net proceeds from the offering for marketing and sales, application development, research and development, and general corporate purposes, including working capital, operating expenses, and capital expenditures.

What is the potential additional gross proceeds if all warrants are exercised in Syra Health's (SYRA) September 2024 offering?

If all Series Warrants are fully exercised on a cash basis, Syra Health (SYRA) could potentially receive additional gross proceeds of approximately $4.1 million.