Ontrak, Inc. Announces Pricing Of $6.3M Public Offering, $11M Concurrent Private Placement And $16.3M Conversion Of Secured Notes
Portfolio Pulse from Benzinga Newsdesk
Ontrak, Inc. (OTRK) has announced the pricing of a public offering and a concurrent private placement, as well as the conversion of secured notes. The public offering includes over 4.5 million shares of common stock and over 9 million warrants at $0.60 per share. The private placement to Acuitas Group Holdings and Acuitas Capital includes over 18 million pre-funded warrants and over 36 million warrants at $0.5999 per pre-funded warrant. Acuitas will convert approximately $16.3 million of outstanding senior secured convertible notes, leaving $2.0 million outstanding. The gross proceeds from the public offering are expected to be approximately $6.3 million.
November 10, 2023 | 1:20 pm
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NEUTRAL IMPACT
Ontrak's public offering and private placement could potentially dilute existing shareholders' equity. However, the conversion of secured notes by Acuitas could reduce the company's debt burden.
The public offering and private placement could lead to dilution of existing shareholders' equity, which may negatively impact the stock price. However, the conversion of secured notes by Acuitas could reduce the company's debt burden, which is generally seen as a positive move by investors. The net impact on the stock price could be neutral in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100