SCWorx Announces Completion of Equity Financing with Institutional Investors

Rhea-AI Summary

SCWorx Corp completed an equity financing deal with institutional investors on November 19th, 2024. The company sold 232,558 shares of common stock along with warrants to purchase an equal number of shares, raising $200,000 in gross proceeds. The company plans to register these shares and warrant shares with the SEC for resale. The net proceeds will be used for working capital and general corporate purposes to support future growth.

Positive

• Secured $200,000 in additional funding through equity financing
• Successfully attracted institutional investors

Negative

• Potential dilution for existing shareholders due to issuance of 232,558 new shares and warrants
• Small financing amount ($200,000) suggests institutional interest

Insights

Financial Analyst

This micro-cap financing deal raises concerns about the company's financial health. The $200,000 raised through the sale of 232,558 shares plus warrants suggests a significant dilution for existing shareholders. The warrant component effectively doubles the potential dilution, as investors received rights to purchase an equal number of additional shares.

The small size of the raise relative to the company's $1.57M market cap, combined with the need for institutional funding for basic working capital, indicates potential cash flow challenges. The terms appear unfavorable, reflecting the company's weak negotiating position. Investors should monitor cash burn rate and future dilution risks carefully.

New York, NY, Nov. 20, 2024 (GLOBE NEWSWIRE) -- SCWorx Corp (the “Company”), on November 19^th, 2024 completed an equity financing with institutional investors (the “Institutional Investors” or “Investors”). In connection with the funding, the Company sold an aggregate of 232,558 shares of common stock and warrants to purchase the same number of shares of common stock, for aggregate gross proceeds of $200,000.

The Company will be registering for resale the shares of common stock and warrant shares with U.S. Securities and Exchange Commission (the “SEC”).

SCWorx expects to use net proceeds from the financing for working capital and general corporate purposes to support its future growth.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities referred to in this news release in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Any offering of SCWorx’s common stock under the resale registration statement referred to in this news release will be made only by means of a prospectus.

About SCWorx

SCWorx has created an advanced attributed virtualized item data warehouse utilizing machine learning and artificial intelligence to offer a suite of software-as-a-service-based solutions for healthcare providers. The value proposition for customers revolves around the full integration of all solution modules with the company’s data platform for cost savings, operational efficiency and accurate benchmarking and reporting. The solution modules include Virtual Item Master, data cleanse and normalization, contract management and request for pricing (RFP) module, automated rebate management module, data interoperability (EMR, MMIS, finance) module, Automated Item Add Portal, Virtual General Ledger, and the data analytics module. SCWorx creates a single source for information for the healthcare provider’s data governance and analytics requirements.

Forward-Looking Statements

This press release contains “forward-looking statements” that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future contract renewals and terminations, future financial position, prospects, plans and objectives of management are forward-looking statements. You can identify many (but not all) such forward-looking statements by looking for words such as “assumes,” “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “projects,” “seeks,” “intends,” “plans,” “could,” “would,” “may” or other similar expressions. You should not place undue reliance on these forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, economic disruptions affecting our customers, unexpected contract terminations, securing future contracts and orders, future product sourcing, supply disruptions, containing costs, the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient resources of the company to meet its business objectives and operational requirements and other important factors that are detailed in filings with the Securities and Exchange Commission made from time to time by SCWorx, including its Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Matters described in forward-looking statements may also be affected by other known and unknown risks, trends, uncertainties and factors, many of which are beyond the company’s ability to control or predict. SCWorx undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contacts:

ir@scworx.com

###
Source: SCWorx Corp.

FAQ

How much money did SCWorx (WORX) raise in its November 2024 equity financing?

SCWorx raised $200,000 in gross proceeds through the sale of common stock and warrants to institutional investors.

How many shares did SCWorx (WORX) sell in its November 2024 financing?

SCWorx sold 232,558 shares of common stock and warrants to purchase an equal number of shares.

What will SCWorx (WORX) use the November 2024 financing proceeds for?

SCWorx plans to use the net proceeds for working capital and general corporate purposes to support future growth.