DALLAS - Spectral AI, Inc. (NASDAQ:MDAI), a Dallas-based artificial intelligence company specializing in medical diagnostics, has announced a new equity funding arrangement that will provide the firm with up to $30 million in capital.
The agreement, a fixed price prepaid advance and standby equity purchase agreement (SEPA) with a long-only investor, includes an initial prepaid advance of $5 million funded today at a fixed conversion price of $3.16.
The total prepaid advance under the SEPA is $12.5 million, with the remaining funds to be released upon certain conditions. The maturity of each tranche is set at 12 months from the respective funding date, with a 45-day grace period followed by a 7-month amortization schedule, including a 7% payment premium. Still, the investor has the option to convert at the fixed price, potentially eliminating the need for amortization.
Peter M. Carlson, CEO of Spectral AI, expressed satisfaction with the funding, which comes as the company shifts towards commercialization of its medical diagnostic tools while continuing research and development. The company recently deployed its first burn treatment device in the U.K. and is advancing clinical trials in the U.S. for diabetic foot ulcer and burn indications.
The SEPA replaces Spectral AI’s existing committed equity facility and allows the company to draw additional funds at its discretion. Northland Capital Markets served as the sole placement agent for the transaction.
Spectral AI's DeepView® System is a predictive diagnostic device aimed at revolutionizing wound care management by providing clinicians with objective and immediate assessments of a wound’s healing potential. The company's innovations seek to improve patient outcomes and reduce healthcare costs by offering faster and more accurate treatment decisions.
The press release emphasizes that this announcement does not constitute an offer to sell the securities nor a solicitation of an offer to buy, and the securities will not be sold in jurisdictions where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The information provided is based on a press release statement from Spectral AI, Inc.
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