Issuance of Convertible Instrument Balances Certainty, Timing, and Execution
Capital Supports Strategic Imperatives and Commercialization Initiatives
“We are pleased to announce this equity funding as we pivot to commercialization while continuing our research and development activities,” said
Key terms of the SEPA and related documents include:
- A prepaid advance in total of
$12.5 million , paid as (i)$5.0 million at the initial closing, (ii)$5.0 million upon the effectiveness of the initial Registration Statement to be filed by the Company, and (iii)$2.5 million to be paid 60 days later. - Maturity of each tranche of the prepaid advance is 12 months from the date of the related funding.
- Following a 45-day grace period, the prepaid advance amortizes over 7 months in the amount of
$1.75 million of principal per month plus a 7% payment premium. No amortization is required if the investor converts at the fixed price. - The fixed conversion price is fixed at 120% of the three-day volume weighted average price as of the last trading day prior to the date of each funding.
- The SEPA will replace the Company’s existing committed equity facility.
- Additional drawdowns are at the sole discretion of the Company.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Spectral AI
Spectral AI, Inc. is a
Forward Looking Statements
Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s strategy, plans, objectives, initiatives and financial outlook. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements.
Investors should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” sections of the Company’s filings with the
Investors: | |
The Equity Group | |
Managing Director | Analyst |
dsullivan@equityny.com | crodriguez@equityny.com |
Media: | |
(858) 717-2310 | |
david.schull@russopartnersllc.com |
Source:
2024 GlobeNewswire, Inc., source