Financing Strengthens Marpai's Growth
Trajectory
TAMPA,
Fla., April 16, 2024 /PRNewswire/
-- Marpai, Inc. ("Marpai" or the "Company") (Nasdaq:
MRAI), an independent national Third-Party Administration
company transforming the $22 billion
TPA market supporting self-funded employer health plans with
affordable, intelligent, healthcare, today announced the sale of
new three-year, $11.83 million
convertible notes to funds managed by JGB Management Inc.
The loan proceeds will be used to repay Marpai's existing debt
with Libertas Funding, fuel Marpai's ongoing growth initiatives and
bolster working capital.
Key Highlights of the Loan Agreement:
- Total Loan Amount: $11.83
million
- Term: Three years
- Use of Proceeds: Debt repayment, growth initiatives and
working capital
- Convertible Note Provision: The notes are convertible
into Marpai common stock at a price of $3.00 per share. This represents a premium to the
current market price of Marpai's common stock. The convertible note
also provides for price protection in the event Marpai issues
shares below the applicable conversion price subject to the floor
of $2.23 per share.
"The proceeds from the sale of the convertible notes provides us
with the financial flexibility to accelerate our growth strategy
and further solidify our position as a leader in the self-funded
employer health plan market," said Damien
Lamendola, CEO of Marpai.
Financing Strengthens Marpai's Growth Trajectory
Marpai has experienced significant growth in recent years,
driven by its innovative technology platform and commitment to
delivering cost-effective, high-quality healthcare solutions to
self-funded employers. The Company is well positioned to capitalize
on the increasing demand for self-funded health plans, and this new
financing will provide Marpai with the resources needed to continue
its upward trajectory.
The securities described herein have not been registered under
the Securities Act of 1933, as amended, and may not be sold in
the United States absent
registration or an applicable exemption from the registration
requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or other jurisdiction in which such
an offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or other jurisdiction.
ThinkEquity served as advisor to the company on the
financing.
About Marpai, Inc.
Marpai, Inc. (Nasdaq: MRAI) is a leading, national TPA company
bringing value-oriented health plan services to employers that
directly pay for employee health benefits. Primarily competing in
the $22 billion TPA sector serving
self-funded employer health plans representing over $1 trillion in annual claims. Marpai works to
deliver the healthiest member population for the health plan
budget. Operating nationwide, Marpai offers access to leading
provider networks including Aetna and Cigna and all TPA services.
For more information, visit www.marpaihealth.com, the content
of which is not incorporated by reference into this press
release.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements, as that
term is defined in the Private Litigation Reform Act of 1995, that
involve significant risks and uncertainties. Forward-looking
statements can be identified through the use of words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates," "guidance," "may," "can," "could", "will",
"potential", "should," "goal" and variations of these words or
similar expressions. For example, the Company is using forward
looking statements when it discusses the potential for ongoing
growth initiatives, the expected use of proceeds and the belief
that this strategic financing demonstrates JGB Management's
confidence in its innovative approach to the TPA market and its
future potential. Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect Marpai's current
expectations and speak only as of the date of this release. Actual
results may differ materially from Marpai's current expectations
depending upon a number of factors. These factors include, among
others, adverse changes in general economic and market conditions,
competitive factors including but not limited to pricing pressures
and new product introductions, uncertainty of customer acceptance
of new product offerings and market changes, risks associated with
managing the growth of the business. Except as required by law,
Marpai does not undertake any responsibility to revise or update
any forward-looking statements whether as a result of new
information, future events or otherwise.
More detailed information about Marpai and the risk factors that
may affect the realization of forward-looking statements is set
forth in Marpai's filings with the Securities and Exchange
Commission. Investors and security holders are urged to read these
documents free of charge on the SEC's web site
at http://www.sec.gov.
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SOURCE Marpai
