MINNEAPOLIS - OneMedNet Corporation (NASDAQ:ONMD), a curator of regulatory-grade Real World Data (RWD) including medical imaging, announced Wednesday it has secured approximately $1.7 million in gross proceeds from a follow-on private placement with an affiliate of Off the Chain Capital. The transaction, which closed on Tuesday, involved the sale of common stock, warrants, and pre-funded warrants.
This recent capital infusion follows a prior private placement with Off the Chain Capital on July 24, 2024, which raised $2.7 million. OneMedNet stated that the funds from the latest round are earmarked for working capital and general corporate purposes. Notably, a portion of the net proceeds is intended for the purchase of Bitcoin ($BTC), aligning with the investment strategy of Off the Chain Capital, a firm focused on digital assets and blockchain company equity.
In the private placement, OneMedNet sold 1,918,591 shares of common stock at $0.65 per share. Additionally, the company issued warrants for 133,095 shares at an exercise price of $0.325 per share and pre-funded warrants for 743,314 shares at $0.65 per share, with the exercise price for these pre-funded warrants prepaid except for $0.0001 per share.
The securities sold in this private placement have not been registered under the Securities Act of 1933 and, therefore, cannot be reoffered or resold in the United States absent registration or an exemption from registration requirements. Amendments were also made to the voting agreement and registration rights agreement between OneMedNet and Off the Chain to encompass the new securities.
OneMedNet's proprietary iRWD™ platform manages diverse clinical data types, including electronic health records and laboratory results, with a unique focus on medical imaging. The platform supports research across various domains, such as rare diseases, oncology, and cardiology, by securely de-identifying, searching, and curating clinical data.
The forward-looking statements in the press release reflect the company's expectations for the use of net proceeds, including potential Bitcoin purchases and the anticipated benefits to its financial performance and business prospects. These statements are subject to risks, uncertainties, and assumptions, and actual events may differ materially.
This news article is based on a press release statement from OneMedNet Corporation.
In other recent news, OneMedNet Corporation faces potential Nasdaq delisting due to delayed financial reporting. The company has until October 31, 2024, to submit the overdue documents and regain compliance, with the assistance of its new auditing firm, WithumSmith+Brown, PC. In other significant developments, OneMedNet has appointed Bob Golden as its new Chief Financial Officer, following the departure of Lisa Embree. Golden brings a wealth of experience in financial management and mergers and acquisitions.
OneMedNet has also announced its transition from The Nasdaq Global Market to The Nasdaq Capital Market, a strategic move approved by Nasdaq's Listing Qualifications Department. Concurrently, the company welcomed Mr. Andrew B. Zeinfeld to its Board of Directors, following the departure of Dr. Julianne Huh.
Furthermore, OneMedNet secured private funding of approximately $4.6 million from institutional investors, including affiliates of Off the Chain Capital and Discovery (NASDAQ:WBD) Capital Management. The company also entered into a Standby Equity Purchase Agreement with investment firm Yorkville Advisors Global, LP. In addition, OneMedNet announced a new partnership through a Customer Data License Agreement with an undisclosed U.S.-based clinical trial design and software company. These are the latest developments in OneMedNet's operations.
InvestingPro Insights
As OneMedNet Corporation (NASDAQ:ONMD) navigates its strategic financial activities, including the recent private placement for working capital and investment in Bitcoin, it's insightful to consider the company's financial health and market performance. According to InvestingPro data, OneMedNet has a market capitalization of approximately $19.78 million, reflecting its current valuation in the market. However, the company's performance metrics indicate challenges, with a negative adjusted P/E ratio of -1.39 for the last twelve months as of Q4 2023, suggesting that the company is not currently profitable.
OneMedNet's revenue growth presents a mixed picture. While there was a quarterly revenue growth of 29.18% in Q4 2023, the revenue growth over the last twelve months declined by 11.37%. This juxtaposition of short-term growth against a longer-term decline could be of interest to investors considering the company's future prospects. Additionally, the gross profit margin was negative at -12.52% for the same period, which aligns with one of the InvestingPro Tips indicating weak gross profit margins.
Investors may also be cautious given that OneMedNet's stock has experienced a significant decrease over the last year, with a one-year price total return of -94.37% as of the data cut-off. This is corroborated by an InvestingPro Tip highlighting that the stock has fared poorly over the last month. For those looking for income through dividends, it's important to note that OneMedNet does not pay a dividend to shareholders.
For a more comprehensive analysis, there are additional InvestingPro Tips available, including insights into the company's short-term obligations versus liquid assets and its trading at a high revenue valuation multiple. These tips can provide a deeper understanding of OneMedNet's financial position and market performance, which may be particularly relevant in light of the company's recent financial decisions. To explore these tips further, visit InvestingPro at https://www.investing.com/pro/ONMD.
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