Beamr video compression achieves up to 50% improvement for AVs
HeartSciences Inc., a medical technology company currently trading at $3.64 per share, has made significant changes to its corporate structure, as revealed in a recent SEC filing. According to InvestingPro data, the company’s financial health score is rated as WEAK, with rapid cash burn being a key concern. On May 21, 2025, the company filed a Certificate of Designations with the Texas Secretary of State to designate 4,285,714 shares of preferred stock as Series D Convertible Preferred Stock.
This corporate action is linked to HeartSciences’ prior announcement on February 12, 2025, of its intention to raise up to $15 million through the offering of units priced at $3.50 each. Each unit includes one share of Series D Convertible Preferred Stock and a warrant to purchase one share of common stock at $5.00 per share. The company operates with a moderate debt level, with a debt-to-equity ratio of 1.67 as reported in InvestingPro’s latest financial metrics.
The Series D Preferred Stock, with a par value of $0.001 per share, is convertible into common stock at the option of the holder and does not bear a dividend unless declared by the company’s board. It is designed to be senior to common stock concerning dividend rights and liquidation preferences.
The company has outlined specific scenarios under which it may compel the conversion of Series D Preferred Stock, such as a change in control, a sustained increase in the common stock’s price, or a successful public offering raising at least $15 million at $5.00 or more per share.
The filing also notes that the Series D Preferred Stock has no voting rights except as required by law or as specified in the Certificate of Designation. In the event of liquidation, Series D Preferred Stock holders are entitled to receive $3.50 per share plus any declared but unpaid dividends before any distributions to holders of junior securities.
HeartSciences Inc.’s strategic move, as disclosed in the SEC filing, is part of its broader effort to raise capital and restructure its equity. The company’s actions are detailed in the attached Exhibit 4.1 of the filing, which is now part of the public record. Despite current challenges, analysts maintain optimistic price targets between $12 and $14, significantly above current trading levels. InvestingPro subscribers can access 8 additional key insights about HeartSciences’ financial outlook and market position.
In other recent news, HeartSciences Inc. has been granted an extension by The Nasdaq Stock Market LLC to regain compliance with the Nasdaq Listing Rule 5550(b)(1), which mandates a minimum of $2.5 million in stockholders’ equity. This follows a previous notification of non-compliance due to the company’s reported stockholders’ equity of $1,786,689 as of January 31, 2025. HeartSciences has until September 15, 2025, to complete transactions necessary to meet compliance standards. The company submitted a plan to Nasdaq, which was accepted, allowing for this extension. If HeartSciences fails to demonstrate compliance by the deadline, it could face delisting, although it retains the right to request a hearing to delay such action. The company is taking steps to address the equity shortfall and maintain its Nasdaq listing, although there is no guarantee of success. HeartSciences continues to trade on Nasdaq, as it meets other listing requirements. The company is evaluating options to meet the required equity threshold and plans to submit a compliance plan by the stipulated deadline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.