FAQ: Healthcare Triangle's $1.63 Million Warrant Inducement Transaction

What is the main purpose of Healthcare Triangle’s warrant inducement transaction?

The transaction is designed to generate approximately $1.63 million in immediate gross cash proceeds through the exercise of existing warrants by accredited and institutional investors, providing the company with additional capital.

How does the warrant inducement transaction work?

Existing investors exercise their outstanding warrants at a reduced price of $2.00 per share (down from $20.92) and receive new warrants to purchase additional shares at $3.00 per share in exchange for immediate exercise of the existing warrants.

When is this transaction expected to occur?

The exercise of existing warrants and issuance of new warrants is expected to occur on October 2, 2025, with closing expected on or about the same date subject to customary closing conditions.

What are the terms of the new warrants being issued?

The new warrants have an exercise price of $3.00 per share, become exercisable after stockholder approval is obtained, and expire five years from the date of such approval.

How many shares are involved in this transaction?

The transaction involves 812,775 shares of common stock from the exercise of existing warrants, with new warrants issued for up to an additional 812,775 shares (equal to 100% of the shares issued).

Who is involved in facilitating this transaction?

WallachBeth Capital is acting as the sole placement agent for the warrant inducement transaction, working with existing accredited and institutional investors.

What is the significance of the exercise price reduction?

The exercise price reduction from $20.92 to $2.00 per share makes the existing warrants more attractive for immediate exercise, enabling the company to secure the $1.63 million in gross proceeds.

Are there any conditions that must be met for the new warrants to become exercisable?

Yes, the new warrants become exercisable only after stockholder approval of their exercise is obtained, which is a key condition before investors can use them.

What company is conducting this warrant inducement?

Healthcare Triangle, Inc. (Nasdaq: HCTI), a digital transformation solutions provider for healthcare and life sciences based in Pleasanton, California, is conducting this transaction.

Is this transaction considered a public offering?

No, this press release specifically states it does not constitute an offer to sell or solicitation to buy, and the new warrants are being issued in a private placement that is not registered with securities authorities.