HeartSciences extends loan maturity, reports $6.7 million in offering proceeds

HeartSciences Inc. (NASDAQ:HSCS), a small-cap healthcare company with a market capitalization of $9.21 million, announced on Wednesday that it has amended its loan agreement with Front Range Ventures LLC, extending the maturity date of its $500,000 secured promissory note to September 30, 2026. The note, which accrues interest at 12% per annum, was previously set to mature on September 30, 2025. The company will pay all accrued unpaid interest as of September 30, 2025, on or before that date, with any additional interest due at the new maturity date. According to InvestingPro data, HeartSciences operates with a moderate debt level, maintaining a current ratio of 1.47, though the company is currently burning through cash at a significant rate. HeartSciences retains the option to repay any portion of the outstanding principal before maturity, with a minimum repayment amount of $50,000, to be applied first to accrued interest and then to principal.

In a separate update included in the same SEC filing, HeartSciences reported that as of Wednesday it has received $6.7 million in gross proceeds from its ongoing Regulation A offering. With the stock currently trading at $3.57 and showing high volatility (beta of 2.59), InvestingPro analysis suggests the stock is slightly overvalued at current levels. The company has issued 1,912,383 units at $3.50 per unit, each consisting of one share of Series D Preferred Stock and one warrant to purchase common stock at $5.00 per share. Holders of 1,331,044 shares of Series D Preferred Stock have elected to convert their shares into an equal number of common shares.

Additionally, HeartSciences completed a debt exchange, converting $2.06 million in principal and $45,000 in accrued interest from an unsecured promissory note into 597,578 shares of common stock. Following these transactions, the company reported a total of 3,069,635 shares of common stock issued and outstanding as of Wednesday. InvestingPro subscribers can access 8 additional key financial metrics and insights about HeartSciences’ financial health and growth prospects.

These disclosures are based on a statement in the company’s Form 8-K filed with the Securities and Exchange Commission.

In other recent news, HeartSciences Inc. reported raising $5.2 million through its ongoing Regulation A offering, issuing 1,484,440 units as part of this effort. The company aims to raise up to $15 million through the offering, which was approved by the SEC earlier this year. Additionally, HeartSciences expanded its Equity Distribution Agreement with Maxim Group LLC, allowing the company to offer and sell up to $25 million in common stock through "at the market" offerings. The board of directors also approved an amendment to the company’s 2023 Equity Incentive Plan, increasing the maximum number of shares issuable under the plan to 1,000,000, pending shareholder approval. Furthermore, HeartSciences has regained compliance with the Nasdaq minimum stockholders’ equity requirement, as confirmed by a formal notice from Nasdaq. The company has also amended its bylaws to include a jury trial waiver for internal claims and set an ownership threshold for shareholders to maintain derivative proceedings. These developments reflect HeartSciences’ ongoing efforts to strengthen its financial position and governance framework.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.