Health In Tech Inc. (NASDAQ: HIT) completed a private investment in public equity financing that generated approximately $7.0 million in gross proceeds before deducting placement agent fees and offering expenses, the company announced.

The AI-enabled InsurTech platform company issued 5.6 million shares of common stock at $1.25 per share to institutional investors and accredited investors. Craig-Hallum Capital Group LLC served as the sole placement agent for the transaction.

"This financing strengthens our ability to accelerate the next phase of our platform development," said Tim Johnson, Chief Executive Officer of Health In Tech. "The additional capital will support key technology initiatives and help us bring new product capabilities to market that our clients have been actively requesting."

The company plans to use the net proceeds for expanding sales distribution, advancing technology development, supporting new product development, and general corporate purposes and working capital.

Julia Qian, Chief Financial Officer, noted that the transaction introduces new long-term institutional investors to the company's shareholder base. She stated this "will enhance market visibility and support our broader capital markets strategy while providing flexibility to continue investing in our technology and growth initiatives."

The securities were offered through a private placement under Section 4(a)(2) of the Securities Act of 1933 and have not been registered under federal securities laws. Health In Tech agreed to file a resale registration statement with the Securities and Exchange Commission for the shares.

Health In Tech operates as an AI-enabled InsurTech platform that provides a marketplace for improving processes in the health insurance industry through vertical integration and automation. The platform serves brokers, third-party administrators, managing general underwriters and carriers.