FAQ: Healthcare Triangle's Warrant Inducement Transaction and $755,000 Capital Raise
Summary
Healthcare Triangle has entered into warrant exercise agreements with existing investors to generate approximately $755,000 in gross proceeds by reducing the exercise price of existing warrants and issuing new warrants. This transaction provides immediate capital for the company while offering investors new warrants with a $3.00 exercise price that are exercisable for five years.
What is the main purpose of Healthcare Triangle’s announcement?
Healthcare Triangle announced a warrant inducement transaction where existing investors will exercise outstanding warrants, providing the company with approximately $755,000 in gross proceeds while receiving new warrants in exchange.
How much money is Healthcare Triangle raising through this transaction?
The company expects to receive approximately $755,000 in gross cash proceeds from the exercise of the existing warrants, excluding any future proceeds from the new warrants and before deducting financial advisor fees and expenses.
What are the key terms of the new warrants being issued?
The new warrants have an exercise price of $3.00 per share, are immediately exercisable upon issuance, and will expire five years from the date of issuance. They cover an aggregate of 377,702 shares of common stock.
When is this warrant exercise transaction expected to occur?
The exercise of the existing warrants and issuance of the new warrants are expected to occur on October 6, 2025, subject to the satisfaction of customary closing conditions.
What change was made to the existing warrants to facilitate this transaction?
The company agreed to reduce the exercise price of the existing warrants from $20.92 to $2.00 per share to encourage immediate exercise by the investors.
Who is involved in this warrant inducement transaction?
The transaction involves Healthcare Triangle, Inc. and certain existing accredited and institutional investors, with WallachBeth Capital acting as the financial advisor for the transaction.
How many shares are involved in this warrant transaction?
The transaction involves 377,702 shares of common stock from the exercise of existing warrants, with new warrants issued to purchase an equal number of shares (377,702 shares).
What is Healthcare Triangle’s business focus?
Healthcare Triangle is a digital transformation solutions provider for healthcare and life sciences, specializing in cloud, security and compliance, data lifecycle management, healthcare interoperability, and clinical & business performance optimization.
Where is Healthcare Triangle based and where are its securities traded?
Healthcare Triangle is based in Pleasanton, California, and its common stock trades on the Nasdaq stock exchange under the ticker symbol HCTI.
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