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Healthcare Triangle (NASDAQ: HCTI) closes $2.85M warrant inducement financing

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Healthcare Triangle, Inc. entered into a warrant inducement agreement under which certain existing warrant holders agreed to exercise warrants for cash to buy up to 1,429,528 shares of common stock at $2.00 per share. The exercises, completed on October 2, 3 and 8, 2025, generated aggregate gross proceeds of approximately $2.85 million before fees and expenses, which the company expects to use for working capital and general corporate purposes.

In return, the company issued new unregistered warrants for up to 1,429,528 additional shares at an exercise price of $3.00 per share, with a five-year term and exercisability beginning after required stockholder approval. A financial advisor received a 6.0% cash fee on gross proceeds, expense reimbursement up to $20,000, advisor warrants equal to about 2.0% of the new warrant shares at $3.00 per share, and a six-month right of first refusal on future offerings. The new warrants include ownership caps of 4.99% or 9.99% and permit cashless exercise if a registration for the new warrant shares is not effective after six months.

Positive

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Insights

Company raises $2.85 million in cash now, but issues new warrants that may add future dilution.

Healthcare Triangle, Inc. secured gross proceeds of about $2.85 million by inducing holders to exercise existing warrants for up to 1,429,528 shares at $2.00 per share. This immediately adds equity capital while converting derivative securities into common stock, which can simplify the balance between cash needs and outstanding instruments.

As consideration, the company issued new five-year warrants for up to 1,429,528 shares at an exercise price of $3.00 per share, plus advisor warrants equal to roughly 2.0% of those new warrant shares at the same exercise price. These instruments create potential future dilution, but any cash exercises would also bring in additional capital. The warrants include beneficial ownership limits of 4.99% or 9.99%, helping prevent any single holder from exceeding those thresholds immediately upon exercise.

The new warrants become exercisable only after stockholder approval of their exercisability and the related share issuance, and they allow cashless exercise if a registration statement for the new warrant shares is not effective after the six-month anniversary of the Closing Date. The company also agreed to file a resale registration statement for the new warrant shares and granted the financial advisor a six-month right of first refusal on future equity and debt offerings on a U.S. exchange after the October 8, 2025 closing.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) October 2, 2025

 

HEALTHCARE TRIANGLE, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   001-40903   84-3559776
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (IRS Employer
Identification No.)

 

7901 Stoneridge Dr.Suite 220 Pleasanton, CA 94588

(Address of principal executive offices)

 

(925)-270-4812

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

Title of each class

  Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.00001 per share   HCTI   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

On October 2, 2025, Healthcare Triangle, Inc. (the “Company”) entered into a warrant inducement letter (the “Inducement Agreement”) with certain holders (the “Holders”) of the Company’s warrants to purchase shares of the Company’s common stock, par value $0.00001 per share (the “Common Stock”), issued in a private placement offering that closed on February 28, 2025 (the “Existing Warrants”). Pursuant to the Inducement Agreement, the Holders of the Existing Warrants agreed to exercise for cash the Existing Warrants to purchase an aggregate of up to 1,429,528 shares of Common Stock (the “Existing Warrant Shares”), at the reduced exercise price of $2.00 per share. The transactions contemplated by the Inducement Agreement (the “Warrant Inducement”) were consummated on October 2, 2025, October 3, 2025, and October 8, 2025 (together the “Closing Date”). The Company received aggregate gross proceeds of approximately $2.85 million, before deducting advisory fees and other expenses payable by the Company.

 

In consideration of the Holders’ immediate exercise of the Existing Warrants in accordance with the Inducement Agreement, the Company issued unregistered Common Stock Purchase Warrants (the “New Warrants”) to purchase an aggregate of up to 1,429,528 shares of Common Stock (100% of the number of Existing Warrant Shares issued upon exercise of the Existing Warrants) (the “New Warrant Shares”) to the Holders of the Existing Warrants.

 

The Existing Warrant Shares have been registered pursuant to a registration statement on Form S-1 (File No. 333-286331), which was declared effective by the Securities and Exchange Commission (the “SEC”) on May 14, 2025.

 

The Company agreed in the Inducement Agreement to file a registration statement to register the resale of the New Warrant Shares (the “Resale Registration Statement”) as soon as practicable (and in any event within 15 calendar days following the date of the Inducement Agreement), and to use commercially reasonable efforts to have the Resale Registration Statement declared effective by the SEC and to keep such registration statement effective at all times until the Holders no longer own any New Warrants or New Warrant Shares.

 

The Company expects to use the net proceeds from these transactions for working capital and other general corporate purposes.

 

WallachBeth Capital, LLC acted as the financial advisor (the “Financial Advisor”) on a “reasonable best efforts” basis, in connection with the Warrant Inducement to a financial advisory agreement, dated October 2, 2025, by and between the Company and the Financial Advisor (“Letter of Engagement”). Pursuant to the Letter of Engagement, the Financial Advisor received a cash fee of 6.0% of the aggregate gross proceeds paid to the Company for the securities sold in the Warrant Inducement and reimbursement of certain out-of-pocket expenses up to a maximum of $20,000. As additional compensation to the Financial Advisor in connection with the Warrant Inducement, the Company agreed to issue to the designees of the Financial Advisor, warrants (“Advisor Warrants”) to purchase shares of Common Stock (the “Advisor Warrant Shares”), equal to approximately 2.0% of the number of New Warrant Shares issued in the offering, at an exercise price per share equal to $3.00, which is equal to the exercise price of the New Warrants. The Advisor Warrants have substantially the same terms as the New Warrants. In addition, pursuant to the terms of the Letter of Engagement, the Financial Advisor has the right of first refusal for a period of six (6) months after the Closing Date to participate in each and every future public and private equity and debt offerings of the Company, or any successor to or any subsidiary of the Company in any U.S. stock exchange during such six (6) month period.

 

Terms of the New Warrants 

 

The New Warrants have an exercise price of $3.00 per share, subject to adjustment as provided in the New Warrants, will be exercisable at any time on or after the date on which the Company receives stockholder approval of the exercisability of the New Warrants and the issuance of the New Warrant Shares upon exercise thereof (the “Stockholder Approval Date”) and have a term of exercise of five (5) years from the date of their issuance.

 

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If at any time after the six-month anniversary of the Closing Date, a registration statement registering the issuance of the New Warrant Shares under the Securities Act is not effective or available, the holder may, in its sole discretion, elect to exercise the New Warrants through a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of Common Stock determined according to the formula set forth in the New Warrants.

 

The exercise price of the New Warrants, and the number of New Warrant Shares, are subject to adjustment in the event of any stock dividend or split, reverse stock split, recapitalization, reorganization or similar transaction, as described in the New Warrants. The Company may also at any time during the term of the New Warrants, subject to the prior written consent of the holder, voluntarily reduce the then current exercise price to any amount and for any period of time, subject to the rules and regulations of Nasdaq.

 

A holder will not have the right to exercise any portion of the New Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% (or, upon election of the holder, 9.99%) of the number of shares of Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of such warrants. However, any holder may increase or decrease such percentage, provided that any increase will not be effective until the 61st day after such election.

 

In the event of a Fundamental Transaction (as such term is defined in the New Warrants), then the successor entity will succeed to, and be substituted for the Company, and may exercise every right and power that the Company may exercise and will assume all of its obligations under the New Warrants with the same effect as if such successor entity had been named in the warrant itself. If holders of Common Stock are given a choice as to the securities, cash or property to be received in a Fundamental Transaction, then the holder shall be given the same choice as to the consideration it receives upon any exercise of the New Warrants following such Fundamental Transaction. In addition, the successor entity, at the request of holders of New Warrants, will be obligated to purchase any unexercised portion of the New Warrants in accordance with the terms thereof.

 

Except as otherwise provided in the New Warrants or by virtue of such holder’s ownership of shares of Common Stock, the holder of the New Warrants will not have the rights or privileges of a holder of Common Stock, including any voting rights, until the holder exercises such warrant.

 

The New Warrants and the New Warrant Shares described herein are being issued in a private placement and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are instead being offered pursuant to the exemption provided in Section 4(a)(2) under the Securities Act and Rule 506(b) promulgated thereunder.

 

The foregoing summaries of each of the New Warrants, the Advisor Warrants, and the Inducement Agreement, do not purport to be complete and are qualified in their entirety by reference to the definitive transaction documents, copies of which are attached hereto as Exhibits 4.1, 4.2, and 10.1, respectively, and are each incorporated herein by reference.

 

The Company notes that the representations, warranties and covenants made by the Company in any agreement that is incorporated by reference herein were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreements. In addition, the assertions embodied in any representations, warranties and covenants contained in such agreements may be subject to qualifications with respect to knowledge and materiality different from those applicable to security holders generally. Moreover, such representations, warranties or covenants were accurate only as of the date when made, except where expressly stated otherwise. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing the current state of the Company’s affairs at any time.

 

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This Current Report on Form 8-K does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state or jurisdiction in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

 

Item 3.02. Unregistered Sales of Equity Securities.

 

The disclosure regarding the New Warrants, the New Warrant Shares, the Advisor Warrants and the Advisor Warrant Shares set forth under Item 1.01 is incorporated by reference into this Item 3.02. The New Warrants, the New Warrant Shares, the Advisor Warrants and the Advisor Warrant Shares are being issued in a private placement transaction and have not been registered under the Securities Act and may not be sold in the United States absent registration or an applicable exemption from the registration requirements.

 

Item 3.03. Material Modification to Rights of Security Holders.

 

To the extent required by Item 3.03 of this Current Report on Form 8-K, the information contained in Item 1.01 of this Current Report on Form 8-K and Exhibit 10.1 to this Current Report on Form 8-K regarding the Existing Warrants are incorporated herein by reference.

 

Item 8.01. Other Events.

 

On October 2, 2025, and October 3, 2025, the Company issued a press release announcing the transactions contemplated pursuant to the Inducement Agreement. A copy of the press releases is furnished herewith as Exhibits 99.1, and 99.2.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit
Number

  Description
4.1   Form of New Warrant
4.2   Form of Advisor Warrant
10.1   Form of Warrant Inducement Letter
99.1   Press release issued by Healthcare Triangle, Inc. on October 2, 2025
99.2   Press release issued by Healthcare Triangle, Inc. on October 3, 2025
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Healthcare Triangle, Inc.
   
Date: October 8, 2025 By: /s/ David Ayanoglou
  Name:  David Ayanoglou
  Title: Chief Financial Officer

 

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FAQ

What transaction did Healthcare Triangle (HCTI) announce in this 8-K?

Healthcare Triangle, Inc. entered into a warrant inducement agreement under which certain holders exercised existing warrants for cash to buy up to 1,429,528 shares of common stock at $2.00 per share. In exchange, the company issued new five-year warrants for up to 1,429,528 additional shares at an exercise price of $3.00 per share.

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

The company received aggregate gross proceeds of approximately $2.85 million from the cash exercises of the existing warrants, before deducting advisory fees and other expenses payable by the company.

What are the key terms of the new warrants issued by Healthcare Triangle (HCTI)?

The new warrants have an exercise price of $3.00 per share, a term of five years from issuance, and become exercisable on or after the date stockholders approve their exercisability and the issuance of the underlying shares. They allow cashless exercise if, after six months from the Closing Date, no effective registration statement covers the new warrant shares, and they include beneficial ownership caps of 4.99% or, at the holder’s election, 9.99%.

How does Healthcare Triangle (HCTI) plan to use the proceeds from this transaction?

Healthcare Triangle, Inc. expects to use the net proceeds from the warrant inducement transactions for working capital and other general corporate purposes.

What compensation did the financial advisor receive in connection with the HCTI warrant inducement?

WallachBeth Capital, LLC received a cash fee of 6.0% of the aggregate gross proceeds from the warrant inducement, reimbursement of certain out-of-pocket expenses up to $20,000, and advisor warrants for shares equal to approximately 2.0% of the number of new warrant shares at an exercise price of $3.00 per share. It also obtained a six-month right of first refusal on future public and private equity and debt offerings on a U.S. stock exchange.

Are the new warrants and related shares for HCTI registered with the SEC?

The existing warrant shares were registered under an effective Form S-1, but the new warrants and the new warrant shares are being issued in a private placement and have not been registered under the Securities Act. The company agreed to file a registration statement to register the resale of the new warrant shares and to use commercially reasonable efforts to keep that registration effective until the holders no longer own any new warrants or new warrant shares.

What happens to HCTI’s new warrants in the event of a Fundamental Transaction?

In a Fundamental Transaction, the successor entity will assume all obligations under the new warrants and may exercise all rights that the company could exercise. Holders will be given the same choice of securities, cash or property as common stockholders, and, upon request, the successor entity will be obligated to purchase any unexercised portion of the new warrants in accordance with their terms.

Healthcare Triangle Inc

NASDAQ:HCTI

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