Marpai raises $12M in convertible preferred stock placement

Marpai, Inc. (OTCQX: MRAI), a healthcare technology and Third-Party Administration company, has entered into securities purchase agreements with accredited investors in a $12 million private placement of convertible preferred stock, led by Mitchell Companies, according to a press release.

The company issued 12,100 shares of newly designated preferred stock at $1,000 per share, with an initial conversion price of $1.00 per share. Holders of the preferred stock are entitled to an 8% dividend payable in shares of common stock upon a liquidity event or conversion. Each share will automatically convert into common stock at the applicable conversion price upon a qualified public offering or a vote of 60% of preferred stockholders.

"This $12 million investment ensures we are well capitalized to execute our strategic vision, accelerate our technology roadmap, and scale our operations," said Damien Lamendola, CEO of Marpai.

Mitchell Companies, described as a family office and investment platform, led the offering. Steve Mitchell, Chairman of Mitchell Companies, said the firm has "immense confidence" in Marpai's leadership team.

Marpai provides Third-Party Administration and Pharmacy Benefit Management services to self-funded employer health plans. The securities issued in the placement have not been registered under the Securities Act of 1933 and may not be sold in the United States absent registration or an applicable exemption.

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