Ontrak prices $4 million public offering of common stock and warrants

NEW YORK - Ontrak, Inc. (NASDAQ:OTRK), whose stock has declined over 45% year-to-date according to InvestingPro data, has priced a public offering of 6,666,667 shares of common stock (or pre-funded warrants) and 26,666,668 warrants at a combined price of $0.60 per share and accompanying warrants, the behavioral healthcare company announced today.

Each share or pre-funded warrant comes with four warrants to purchase additional common stock at an exercise price of $0.60 per share. The warrants’ exercisability requires stockholder approval and would expire five years after such approval.

The offering, expected to close around Monday, is anticipated to generate approximately $4 million in gross proceeds before deducting placement agent fees and other expenses. Ontrak plans to use the net proceeds for working capital and general corporate purposes.

Roth Capital Partners is serving as the exclusive placement agent for the offering, which is being conducted pursuant to a registration statement on Form S-1 declared effective by the SEC on Wednesday.

Acuitas Group Holdings, LLC and Acuitas Capital LLC, which will hold a majority of Ontrak’s outstanding common stock immediately before the closing, have agreed to vote for the exercisability of the warrants offered in the public offering.

Separately, Ontrak entered into the Seventh Amendment to the Keep Well Agreement today, with details to be disclosed in an upcoming Form 8-K filing.

Ontrak describes itself as a value-based behavioral healthcare company that uses AI and engagement technology to identify and assist individuals with anxiety, depression, substance use disorder and chronic disease. The information in this article is based on a company press release statement. For comprehensive analysis and detailed financial metrics, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.

In other recent news, Ontrak Inc reported a notable decline in revenue for the first quarter of 2025, with figures dropping 25% year-over-year to $2 million. The company’s gross margin also fell significantly to 37%, down from 61% in the previous quarter. Despite these financial challenges, Ontrak’s strategic initiatives, including the launch of new AI-driven solutions, aim to expand its market reach. The company projects revenue for the second quarter of 2025 to range between $2.2 million and $2.6 million, reflecting cautious optimism about its growth trajectory. Ontrak is also pursuing a large Midwestern Medicaid plan, which could significantly boost future revenues. Additionally, the company is awaiting feedback on several health plan proposals. The firm has nearly doubled its total enrolled members year-over-year, indicating strong growth potential in its customer base. Ontrak’s focus on innovation and strategic partnerships offers a potential path to recovery and growth amid ongoing financial challenges.

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