Ontrak reports closing of $6.3M public offering

Ontrak announced the closing of its previously announced public offering of: 4,592,068 shares of its common stock and 9,184,136 warrants to purchase up to 9,184,136 shares of its common stock at a combined public offering price of $0.60 per share of common stock and accompanying warrants, and 5,907,932 pre-funded warrants to purchase up to 5,907,932 shares of its common stock and 11,815,864 warrants to purchase up to 11,815,864 shares of its common stock at a combined public offering price of $0.5999 per pre-funded warrant and accompanying warrants, which represents the per share public offering price for the common stock and accompanying warrants less the $0.0001 per share exercise price for each pre-funded warrant. In addition, Ontrak announced the closing of its previously announced concurrent private placement to Acuitas of 18,333,333 pre-funded warrants to purchase up to 18,333,333 shares of its common stock and 36,666,666 warrants to purchase up to 36,666,666 shares of its common stock at a combined offering price of $0.5999 per pre-funded warrant and accompanying warrants, which represents the per share public offering price for the common stock and accompanying warrants less the $0.0001 per share exercise price for each pre-funded warrant. The gross proceeds to the company from the public offering were approximately $6.3M before deducting placement agent fees and other offering expenses payable by the Company. The company intends to use the net proceeds of the offering for working capital and other general corporate purposes. In addition, the private placement resulted in the cancellation of $5M of debt owed by the company to Acuitas under outstanding senior secured convertible notes and the reclassification of $6M of restricted cash held under the terms of the Master Note Purchase Agreement previously entered into with Acuitas to unrestricted cash.