WallachBeth Capital Announces Healthcare Triangle Warrant Inducement For Aggregate Gross Proceeds Of $1.63 Million

Rhea-AI Summary

Healthcare Triangle (NASDAQ:HCTI) has secured approximately $1.63 million in gross proceeds through warrant exercise agreements with three existing accredited investors. The agreement involves the immediate exercise of existing warrants to purchase 812,775 shares of common stock, with the exercise price reduced from $20.92 to $2.00 per share.

In exchange, investors will receive new unregistered warrants to purchase an additional 812,775 shares at $3.00 per share, exercisable upon stockholder approval and expiring five years thereafter. WallachBeth Capital is serving as the sole placement agent for this warrant inducement transaction, expected to close on October 2, 2025.

Positive

• Immediate cash injection of $1.63 million to strengthen balance sheet
• Successful warrant restructuring indicates investor confidence
• New warrants provide potential for additional future funding at $3.00 per share

Negative

• Significant reduction in warrant exercise price from $20.92 to $2.00 indicates substantial dilution
• Additional potential dilution from new warrants if exercised
• Transaction requires stockholder approval for new warrants to become exercisable

Insights

Financial Analyst

HCTI secures immediate $1.63M through creative warrant exercise deal, significantly diluting shares but providing needed capital.

Healthcare Triangle has executed a strategic financial maneuver through a warrant inducement transaction generating $1.63 million in immediate gross cash proceeds. The company convinced three existing investors to exercise their warrants by substantially reducing the exercise price from $20.92 to $2.00 per share - a 90.4% discount. In exchange for this immediate capital injection, HCTI issued new warrants to purchase an equal number of shares (812,775) at $3.00 per share, exercisable upon stockholder approval with a 5-year term.

This transaction reveals several important financial implications. First, the steep warrant price reduction from $20.92 to $2.00 signals the company's urgent need for capital and the challenge of raising funds at previous valuations. Second, the transaction structure is effectively doubling the potential dilution - the original 812,775 shares plus another potential 812,775 shares from the new warrants. The $1.63 million provides immediate working capital, but the dilutive effect and the reduced pricing suggest financial pressure.

While this capital infusion strengthens HCTI's immediate liquidity position, the substantial price concession required to secure these funds indicates potential operational challenges. The company's decision to offer such favorable terms to existing investors rather than seeking new investment sources suggests limited financing alternatives. The transaction effectively resets investor price expectations significantly downward from previous levels.

JERSEY CITY, N.J., Oct. 2, 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, has entered into warrant exercise agreements with three existing accredited investors to exercise certain outstanding warrants to purchase an aggregate of 812,775 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 $1.63 million, the exercising holders will receive in a private placement new unregistered warrants (the "New Warrants") to purchase up to an aggregate of 812,775 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 initially exercisable on the date that stockholder approval of the exercise of the New Warrants is obtained and will expire five years from the date of such approval. 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 2, 2025.

The closing of the offering is expected to occur on or about October 2, 2025, subject to the satisfaction of customary closing conditions. The gross proceeds from the warrant inducement are expected to be approximately $1.63 million, excluding any proceeds that may be received upon the exercise of the  New Warrants and before deducting placement agent fees and other offering expenses payable by the Company.

WallachBeth Capital is acting as sole placement agent 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

How much did Healthcare Triangle (HCTI) raise in the warrant inducement?

Healthcare Triangle raised $1.63 million in gross proceeds through the warrant inducement transaction.

What is the exercise price of HCTI's new warrants?

The new warrants have an exercise price of $3.00 per share, compared to the reduced price of $2.00 for the existing warrants that were originally at $20.92.

How many shares are involved in HCTI's warrant exercise?

The transaction involves 812,775 shares from existing warrant exercises and potential additional 812,775 shares from new warrants.

When will HCTI's new warrants become exercisable?

The new warrants will become exercisable on the date that stockholder approval is obtained and will expire five years from that date.

Who is the placement agent for HCTI's warrant inducement?

WallachBeth Capital LLC is acting as the sole placement agent for the warrant inducement transaction.