WallachBeth Capital Announces Healthcare Triangle Warrant Inducement For Aggregate Gross Proceeds Of $755,000

Rhea-AI Summary

Healthcare Triangle (Nasdaq: HCTI) announced on Oct 3, 2025 that holders agreed to immediately exercise outstanding warrants to buy 377,702 common shares for aggregate gross proceeds of approximately $755,000. In return, those holders will receive new unregistered warrants to purchase up to 377,702 shares at an exercise price of $3.00 per share.

The company reduced the exercise price of the Existing Warrants from $20.92 to $2.00. The New Warrants are immediately exercisable, expire five years from issuance, and the transactions are expected to close on or about Oct 6, 2025. WallachBeth Capital is acting as financial advisor. Gross proceeds exclude any future New Warrant exercises and will be reduced by advisor fees and transaction expenses.

Positive

• Gross proceeds of approximately $755,000
• Immediate exercise of 377,702 Existing Warrants
• New unregistered warrants for 377,702 shares issued
• New Warrants immediately exercisable with 5‑year term

Negative

• Potential dilution of up to 377,702 shares from New Warrants
• Exercise price cut from $20.92 to $2.00 per Existing Warrant
• Net proceeds will be reduced by financial advisor fees and expenses

Insights

Corporate finance analyst

Warrant inducement raises $755,000 and greatly lowers existing warrant strike to $2.00, issuing new five‑year warrants.

This provides immediate gross proceeds of $755,000 and issues 377,702 new warrants exercisable at $3.00. The company also reduced the Existing Warrants' exercise price from $20.92 to $2.00, a materially lower strike that increases potential dilution.

What it means: the company secures short‑term cash while granting investors additional optionality via five‑year warrants, which may dilute shares if exercised. Why it matters: the funding size is modest, and the large exercise price cut signals the company used inducement to convert otherwise out‑of‑the‑money warrants into immediate capital.

Monitorable item: the exercise and issuance are expected to occur on or about October 6, 2025, and the disclosed gross proceeds are approximately $755,000.

JERSEY CITY, N.J., Oct. 3, 2025 /PRNewswire/ -- WallachBeth Capital LLC, a leading provider of capital markets and institutional execution services, announced today that Healthcare Triangle, Inc. (Nasdaq: HCTI) ("HCTI" or the "Company"), a leader in digital transformation solutions for healthcare and life sciences, today announced today it has entered into warrant exercise agreements with certain existing accredited and institutional investors to exercise outstanding warrants to purchase an aggregate of 377,702 of the Company's shares of common stock (the "Existing Warrants"). In consideration for the immediate exercise in full of the Existing Warrants for gross cash proceeds of approximately $755,000, the exercising holders will receive in a private placement new unregistered warrants (the "New Warrants") to purchase up to an aggregate of 377,702 shares of common stock (equal to 100% of the shares of common stock issued in connection with the exercise of the Existing Warrants) with an exercise price of $3.00 per share. The New Warrants are immediately exercisable on the date of issuance and will expire five years from the date of issuance. In connection with the exercise of the Existing Warrants, the Company agreed to reduce the exercise price of the Existing Warrants from $20.92 to $2.00 per share. The exercise of the Existing Warrants and the issuance of the New Warrants are expected to occur on October 6, 2025.

The closing of the offering is expected to occur on or about October 6, 2025, subject to the satisfaction of customary closing conditions. The gross proceeds from the warrant inducement are expected to be approximately $755,000, excluding any proceeds that may be received upon the exercise of the New Warrants and before deducting financial advisor fees and other expenses payable by the Company.

WallachBeth Capital is acting as financial advisor for the warrant inducement transaction.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About WallachBeth Capital LLC

WallachBeth Capital offers a robust range of capital markets and investment banking services to the healthcare community, connecting corporate clients with leading institutions, creating value for both issuers and investors. The firm's experience includes initial public offerings, follow-on issues, PIPE offerings, and private transactions and ATM's.

Forward-Looking Statements and Safe Harbor Notice :

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates, forecasts, and projections about the industry and markets in which Healthcare Triangle, Inc. operates, as well as management's beliefs and assumptions. Forward-looking statements include, but are not limited to, statements regarding revenue growth, margin expansion, market opportunities, and strategic initiatives. These statements involve risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes may differ materially from those expressed or implied in any forward-looking statements due to various factors beyond the company's control, including changes in market conditions, client demand, regulatory developments, and execution risks. Readers are cautioned not to place undue reliance on these forward-looking statements. Healthcare Triangle, Inc. undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

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SOURCE WallachBeth Capital LLC

FAQ

What did Healthcare Triangle (HCTI) announce on Oct 3, 2025 about warrants?

HCTI said holders will exercise 377,702 Existing Warrants for ~$755,000, and will receive New Warrants to buy up to 377,702 shares at $3.00 per share.

How did the company change the Existing Warrant exercise price in the HCTI deal?

HCTI agreed to reduce the Existing Warrant exercise price from $20.92 to $2.00 per share.

When will the warrant exercise and issuance for HCTI occur?

The exercise of Existing Warrants and issuance of New Warrants are expected to occur on or about October 6, 2025.

What are the terms of the New Warrants in the HCTI transaction?

New Warrants allow purchase of up to 377,702 shares at $3.00, are immediately exercisable, and expire in five years.

How will the HCTI warrant inducement affect shareholder dilution?

The transaction creates potential dilution of up to 377,702 shares equal to the New Warrants issued.

Who is advising Healthcare Triangle on the warrant inducement and will proceeds be net of fees?

WallachBeth Capital is the financial advisor, and gross proceeds (~$755,000) will be reduced by advisor fees and transaction expenses.