Higher Therapeutics, a prescription digital therapeutics firm, introduced a non-public placement of the corporate’s widespread inventory, which garnered gross proceeds of roughly $6.5 million.
Officers and administrators of the corporate participated within the placement, which is predicted to shut on or round April 10.
Higher Therapeutics was among the many many digital well being corporations that went public by merging with a particular function acquisition firm in 2021. It debuted at a inventory value of round $10 per share. On April 5, on the time of the non-public placement, the corporate’s inventory was $0.825 per share.
WHAT IT DOES
The California-based firm offers cognitive behavioral remedy to deal with diabetes, hypertension and different cardiometabolic ailments.
The proceeds might be used to increase the corporate’s runway by way of its meant FDA advertising and marketing authorization for its BT-001 investigational prescription digital therapeutic for Sort 2 diabetes.
Late final month, Higher Therapeutics filed a discover with the U.S. Securities and Trade Fee that stated it was shedding roughly 35% of its workforce.
Per the submitting, the corporate anticipated to incur roughly $400,000 in cash-related bills on account of severance and advantages in Q2 2023.
In an e-mail notifying staff of the workforce discount, Higher Therapeutics’ CEO Frank Karbe stated the corporate was “implementing different value financial savings measures” to increase its monetary runway additional.
The corporate has struggled to achieve profitability since going public as a SPAC. In its most up-to-date This fall 2022 and full 12 months 2022 monetary outcomes, the corporate reported a internet lack of $39.8 million for 2022 in comparison with $40.3 million in 2021.
The corporate expects its working money burn for 2023 to be decrease than anticipated by roughly $10 million on account of restructuring and different value financial savings measures. It famous it was actively looking for extra capital.
Monique Mansoura will supply extra element in the course of the HIMSS23 session “Leveraging Digital Well being and Actual-World Information to Handle Rising Well being Threads and International Well being Safety.” It’s scheduled for Wednesday, April 19, from 2:30-4 p.m. CT in MITRE Assembly Room N227B, North Corridor B.