MINNEAPOLIS - OneMedNet Corporation (NASDAQ:ONMD), a provider of regulatory-grade Real World Data (iRWD™) through its OneMedNet iRWD™ platform, has announced a private placement agreement with an institutional investor for up to $4.54 million. The agreement, dated March 28, 2024, involves the issuance of senior convertible notes.
The company, established in 2009, specializes in managing diverse clinical data types, including electronic health records, laboratory results, and medical imaging data. OneMedNet's platform facilitates the de-identification, search, and curation of data archives, enhancing research opportunities for healthcare providers.
President & CEO Aaron Green expressed that the funding is set to expedite OneMedNet's growth, improve its network, and advance the development of its AI-driven solutions. The investment underscores the confidence in the company's platform, which aims to support research across various domains such as rare diseases, oncology, and cardiology.
OneMedNet intends to allocate the net proceeds from this offering towards working capital purposes. EF Hutton LLC served as the placement agent, while ARC Group Ltd. provided financial and capital markets advisory services to OneMedNet. Legal counsel for the transaction was provided by Rimon P.C. for OneMedNet and Lucosky Brookman LLP for the investor.
The press release highlighted that this announcement does not constitute an offer to sell the securities and that the sale would not be conducted in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
The company's forward-looking statements, including projections about its financial performance and growth prospects, are based on current expectations and are subject to risks, uncertainties, and assumptions. OneMedNet emphasizes that these statements are predictions and actual events or results may differ materially.
This news article is based on a press release statement from OneMedNet Corporation.
InvestingPro Insights
As OneMedNet Corporation (NASDAQ:ONMD) navigates through its growth phase with the recent announcement of a private placement agreement, certain financial metrics and expert analyses from InvestingPro provide deeper insights into the company's current fiscal health and market performance.
With a market capitalization of $25.49 million, OneMedNet is positioned in a challenging market environment, underscored by a significant debt burden and a history of quickly burning through cash, as per two key InvestingPro Tips.
InvestingPro data reveals a negative adjusted P/E ratio of -3.41 for the last twelve months as of Q3 2023, indicating that the company is not currently profitable. Furthermore, a gross profit margin of -29.07% during the same period reflects the company's struggles to maintain profitability in its operations. The stock price volatility is also evident from a 1-year price total return of -92.99%, showcasing the high-risk nature of the investment at this time.
Investors seeking to understand the potential risks and opportunities associated with OneMedNet should consider these metrics, alongside the 11 additional InvestingPro Tips available at https://www.investing.com/pro/ONMD. For those interested in a comprehensive analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights that could guide investment decisions.
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