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NOVATO, Calif. - QT Imaging Holdings, Inc. (OTCQB:QTIH), a medical device company focused on body imaging systems using low frequency sound waves, announced Wednesday it has secured approximately $18 million in a private investment in public equity (PIPE) financing. The company, currently valued at $68.4 million according to InvestingPro data, has demonstrated impressive revenue growth of 166% over the last twelve months.
The fully subscribed private placement was anchored by Sio Capital Management with participation from other institutional and existing investors. The company plans to use $5 million of the proceeds to repay part of its senior secured term loan with Lynrock Lake Master Fund LP, with the remainder funding its U.S. and global market expansion and deployment of its QTI Cloud Platform. InvestingPro analysis indicates the company operates with a moderate debt level and maintains a healthy current ratio of 1.69.
"Today marks an important inflection point for our business," said Dr. Raluca Dinu, CEO of QT Imaging. "With this investment, together with our existing cash, we are very well-positioned to continue executing our global growth strategy." The company’s stock has shown remarkable momentum, with a year-to-date return of 385% according to InvestingPro, which offers 8 additional key insights about QTIH’s performance and prospects.
The company also announced plans to initiate a NASDAQ relisting process.
Under the agreement, QT Imaging is selling approximately 12.1 million shares of common stock (or pre-funded warrants) and common warrants at $1.50 per share. The warrants are exercisable at $1.50 per share and will expire five years from issuance. The financing is expected to close by October 3, 2025.
Ladenburg Thalmann & Co. Inc. is serving as the exclusive placement agent for the transaction.
The securities sold in this private placement have not been registered under the Securities Act of 1933 and were offered only to accredited investors or qualified institutional buyers. The company has agreed to file registration statements with the SEC covering the resale of these securities.
This information is based on a press release statement from QT Imaging Holdings, Inc.
In other recent news, QT Imaging Holdings, Inc. has secured a significant distribution agreement with Gulf Medical Co. for its breast imaging technology in Saudi Arabia. The exclusive deal is set to generate approximately $33 million in revenue over a three-year period. This agreement involves the shipment of a minimum of five QTI Breast Acoustic CT scanners per quarter, starting in the first quarter of 2026 and continuing through the end of 2028. A total of 60 scanners are expected to be delivered under this arrangement. These developments highlight QT Imaging’s expansion efforts in the Middle Eastern market. The financial impact of this deal is noteworthy, as it represents a substantial revenue stream for the company. This agreement marks a strategic move for QT Imaging as it aims to strengthen its presence in the global medical imaging sector.
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