Forian To Raise $24M Via Private Placement Of 3.5% Convertible Notes, Appoints New CFO

Forian Inc. FORA announced on Wednesday a $24 million valued private placement of 3.5% convertible notes. The company, which provides analytics services and software solutions to healthcare and cannabis industries, also revealed it has appointed Michael Vesey as the new Chief Financial Officer.

The Offering Details

The company, based in Newtown, PA, has entered into a convertible note purchase agreement with a select group of institutional and accredited investors under which it will issue a $24 million aggregate principal amount at 100% of par value of its 3.5% convertible notes due 2025.

The notes are convertible into (i) shares of the Company's common stock at a conversion price of $11.98, and (ii) warrants to purchase the number of shares of the Company's common stock equal to 20% of the converted principal amount, divided by the conversion price; warrants will have an exercise price equal to the conversion price and will terminate at the maturity date.

Interest will be added to the principal amount of the Notes and paid in kind upon conversion or in cash upon redemption at or prior to the September 1, 2025 maturity date.

Forian expects to use the proceeds of the financing, together with other available funds, for data acquisition, working capital and general corporate purposes, including potential acquisition or investment in technologies, intellectual property or businesses that complement the Company's business.

Appointment of Michael Vesey as Chief Financial Officer

In addition, the company announced it has hired Michael Vesey as the new chief financial officer, effective September 2, 2021. Vesey will succeed Clifford Farren, who will remain with Forian in an advisory capacity through the end of the year to ensure an orderly transition.

"Michael brings a successful history of driving results and positioning emerging companies for growth, and we are happy to welcome him to our team," said Max Wygod, executive chairman of Forian. "As I mentioned on our last earnings call, I believe it is an exciting time at Forian with our new products expected to be released in market and meaningful growing backlog and pipeline giving us a solid opportunity for future substantial revenue growth."

More recent news from Forian:

MindMed Teams Up With Forian To Improve Real-World Evidence Data To Help Psychiatric Patients

Price Action

Forian’s shares were trading 0.09% lower at $11.25 per share at the time of writing Thursday mid-morning.

Photo: Courtesy of Elsa Olofsson on Unsplash