Healthcare Triangle Secures $478,000 Through Warrant Inducement Transaction

Healthcare Triangle, Inc. (Nasdaq: HCTI), a digital transformation solutions provider for healthcare and life sciences, has completed a warrant inducement transaction that will generate approximately $478,000 in gross proceeds for the company. The agreement involves existing accredited and institutional investors exercising outstanding warrants to purchase 239,051 shares of common stock.

In exchange for the immediate exercise of these existing warrants, investors will receive new unregistered warrants through a private placement. These new warrants provide the right to purchase up to 239,051 additional shares of common stock, representing 100% of the shares issued through the warrant exercise. The new warrants carry an exercise price of $3.00 per share and become immediately exercisable upon issuance, with a five-year expiration term.

A critical component of this transaction involved Healthcare Triangle reducing the exercise price of the existing warrants from $20.92 to $2.00 per share to facilitate the inducement. This strategic pricing adjustment made the warrant exercise economically viable for investors while providing the company with immediate capital infusion. The transaction is expected to close on October 8, 2025, pending satisfaction of customary closing conditions.

The financial implications of this move extend beyond the immediate $478,000 capital raise. The company will not receive additional proceeds from potential future exercises of the new warrants until investors choose to exercise them. The gross proceeds figure also excludes financial advisor fees and other transaction expenses that Healthcare Triangle must cover, as detailed in their securities filing available at https://www.sec.gov/edgar.shtml.

WallachBeth Capital served as financial advisor for this warrant inducement transaction, providing strategic guidance on the structure and execution. The involvement of an established financial advisor typically indicates the complexity of such securities transactions and the importance of proper structuring to benefit both the company and investors.

For Healthcare Triangle, this capital infusion comes at a time when digital transformation in healthcare continues to accelerate. The company specializes in helping healthcare organizations, including hospitals, health systems, payers, and pharmaceutical companies, improve health outcomes through better utilization of data and information technologies. Their HITRUST Certification for Cloud and Data Platform demonstrates their commitment to maintaining the highest standards for data protection and information security in the highly regulated healthcare sector.

The warrant inducement strategy represents a creative approach to capital raising that benefits both the company and its investors. For Healthcare Triangle, it provides immediate working capital without the dilution that might occur through traditional equity offerings. For investors, it offers continued participation in the company's potential growth through the new warrants at favorable terms. This type of financing arrangement often signals management's confidence in the company's future prospects and their ability to create shareholder value through strategic initiatives in the competitive healthcare technology landscape.