Helius raises $500 million to build Solana-focused treasury

NEWTOWN, Pa. - Helius Medical Technologies, Inc. (NASDAQ:HSDT) announced Monday the pricing of an oversubscribed private investment in public equity offering to raise over $500 million, with plans to transform into a Solana-focused treasury company. According to InvestingPro data, this fundraising comes at a crucial time for the company, which has seen a significant 28.57% return over the last week despite struggling with cash burn and a market capitalization of just $8.14 million.

The offering, led by Pantera Capital and Summer Capital, includes the sale of common stock and pre-funded warrants at $6.881 per share, along with stapled warrants exercisable at $10.134 for three years. If all warrants are exercised, the company could raise an additional $750 million.

Other investors include Big Brain Holdings, Avenir, SinoHope, FalconX, Arrington Capital, Animoca Brands, and HashKey Capital, according to the press release.

Following the transaction’s expected closing on September 18, Helius plans to use proceeds to acquire SOL, the native cryptocurrency of the Solana blockchain, as its primary treasury reserve asset. While InvestingPro analysis shows the company maintains a healthy current ratio of 4.32, indicating strong short-term liquidity, its overall financial health score remains weak at 1.44, with negative EBITDA of -$13.79 million in the last twelve months.

The company will undergo leadership changes with Joseph Chee, Founder and Chairman of Summer Capital, becoming Director and Executive Chairman. Cosmo Jiang from Pantera Capital will join as Board Observer, while Dan Morehead, Founder of Pantera Capital, will serve as Strategic Advisor.

"We believe that Solana is a category-defining blockchain and the foundation on which a new financial system will be built," said Morehead in the announcement.

Helius plans to implement a SOL treasury strategy that includes staking and lending to generate revenue while maintaining what it describes as a conservative risk profile.

The company will continue trading under the ticker "HSDT" on the Nasdaq Capital Market, with the treasury strategy becoming effective after closing.

Clear Street served as the exclusive financial advisor and lead placement agent, with Maxim Group LLC and Tiger Securities as co-placement agents. For investors seeking deeper insights into HSDT’s transformation and financial outlook, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 13 additional ProTips and extensive financial metrics that help decode the company’s strategic shift.

In other recent news, Helius Medical Technologies announced positive results from its PoNS Stroke Registrational Program, which showed significant improvements in gait and balance deficits among stroke patients. This development supports a planned FDA submission for their Portable Neuromodulation Stimulator therapy. Additionally, Helius Medical has regained compliance with Nasdaq’s equity listing requirements, receiving formal notification from The Nasdaq Stock Market confirming they meet the minimum stockholders’ equity requirement of $2.5 million. The company also filed an updated prospectus for the sale of up to $25 million of its Class A common stock, to be conducted as an "at the market offering" through Roth Capital Partners. Furthermore, Helius Medical implemented a 1-for-50 reverse stock split, reducing its outstanding shares significantly while maintaining the authorized share count at 150 million. These recent developments highlight Helius Medical’s efforts to strengthen its financial position and advance its therapeutic offerings.

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