Marpai Secures Up to $5 Million in Second Tranche Financing

Marpai Secures $5 Million for Growth Initiatives

Marpai, Inc. (OTCQX: MRAI) has announced its latest funding round, successfully securing up to $5 million from JGB Collateral LLC. As a pivotal player in the Third-Party Administrator (TPA) sector, Marpai aims to enhance its operating platform with these funds, which will be allocated towards various growth initiatives and general working capital needs.

Investment Overview and Details

This recent funding marks the second tranche of non-dilutive financing for Marpai. Earlier commitments included a Securities Purchase Agreement that enabled the company to sell Senior Secured Convertible Debentures (the “Debentures”) for an aggregate principal amount of $11,830,000, generating a total purchase price of $11,000,000. This strategic financing plan is designed to further solidify Marpai’s presence in the rapidly evolving health care landscape.

A Deeper Dive into Financing Terms

In late December, Marpai entered into an Amendment Agreement with JGB and its Purchasers to extend additional financing. Within this new framework, the company can secure an additional $5,376,000, of which $2 million has already been provided. The remaining $3 million is being held in escrow; its release is contingent on the fulfillment of certain conditions outlined in the amendment.

The Role of Conversion Features

Notably, the conversion feature tied to the Original Investment will not apply to these newly issued Debentures linked with the additional investment. The implementation of customary representations and warranties ensures that all parties uphold their legal and financial commitments.

Leadership Insights and Company Outlook

Damien Lamendola, CEO of Marpai, expressed enthusiasm over this new phase of financing. He remarked, “We are very pleased to continue our relationship with JGB. The proceeds from the sale will be used to fund several of our ongoing growth initiatives and support a strong working capital footprint.” This commitment not only reflects confidence in Marpai's existing strategies but also sets the stage for an ambitious future.

About Marpai, Inc.

Marpai, Inc. operates as a technology platform company dedicated to transforming the TPA market. Competing in a sector valued at approximately $22 billion, Marpai’s health plan services are tailored for self-funded employers who directly manage their employee health benefits. The company’s innovative Marpai Saves initiative aims to optimize member outcomes while remaining budget-conscious.

Comprehensive Service Offerings

Marpai's business model includes partnerships with top provider networks like Aetna and Cigna, providing a full suite of TPA services across the country. These alliances not only broaden Marpai’s service offerings but also enhance accessibility for employers seeking comprehensive health solutions.

Frequently Asked Questions

What is the purpose of the $5 million funding for Marpai?

The funds will be used mainly for growth initiatives and to bolster working capital.

Who is providing the funding?

The funding is being provided by JGB Collateral LLC, a limited liability company.

How does this financing round differ from previous ones?

This round is a second tranche of non-dilutive funding, meaning it avoids diluting current shareholder equity.

What are the key features of the investment agreement?

The investment includes Senior Secured Convertible Debentures and contains specific terms regarding additional funding held in escrow.

What initiatives is Marpai focusing on moving forward?

Marpai aims to enhance its technology platform and expand its service offerings within the TPA market.

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