Investment Banking - Ontrak, Inc.
Transactions | Healthcare
Client: Ontrak, Inc.
Transaction Type: Follow-on Offering
Ontrak, Inc. Preferred Stock Offering
- Ontrak, Inc. (NASDAQ: OTRK) (the “Company”) is a leading AI and telehealth enabled, virtualized outpatient healthcare treatment company, whose mission is to help improve the health and save the lives of as many people as possible. The company’s PRE™ (Predict-Recommend-Engage) platform predicts people whose chronic disease will improve with behavior change, recommends effective care pathways that people are willing to follow, and engages people who aren’t getting the care they need.
- On September 8, 2020, the Company announced that it had closed the full exercise of the underwriters’ over-allotment option regarding its previously announced underwritten public offering of 9.50% Series A Cumulative Perpetual Preferred Stock (the “Series A Preferred Stock“), resulting in aggregate gross proceeds to the Company of $48.9 million from the public offering.
- The Series A Preferred Stock sold in the offering has been approved for listing on the Nasdaq Global Market under the symbol “OTRKP.”
- The Company intends to use the net proceeds of this offering to fund a segregated dividend account for the payments of the first eight quarterly dividend payments on the Series A Preferred Stock and to use the remaining net proceeds for general corporate purposes, which may include working capital, M&A, and investments in technology.
- Boenning & Scattergood served as a co-manager in the transaction.