HeartSciences reports $5.2 million raised and debt exchange for common stock

Published 22/08/2025, 21:16
HeartSciences reports $5.2 million raised and debt exchange for common stock

HeartSciences Inc. (NASDAQ:HSCS), currently valued at $7.69 million in market capitalization, announced Friday it has raised $5.2 million in gross proceeds through its ongoing Regulation A offering, according to a press release statement based on a recent SEC filing. InvestingPro data shows the company faces liquidity challenges with a current ratio of 0.59.

The company reported that, as of Friday, it has issued 1,484,440 units as part of the offering, which was qualified by the SEC on March 10. Each unit consists of one share of Series D Preferred Stock and one warrant to purchase a share of common stock at an exercise price of $5.00 per share. The offering allows for up to 4,285,714 units at a price of $3.50 per unit, for a maximum amount of $15 million. The stock, currently trading at $3.65, has shown significant volatility with a beta of 2.58.

HeartSciences also stated that holders of 979,851 shares of Series D Preferred Stock have elected to convert their shares into an equal number of common shares.

In addition, the company exchanged $1,655,000 of an unsecured promissory note issued in September 2024 for 461,572 shares of common stock, reducing the principal amount of that note.

Following these transactions, HeartSciences reported a total of 2,535,066 shares of common stock issued and outstanding as of Friday.

The company’s common stock and warrants trade on The Nasdaq Stock Market LLC under the symbols HSCS and HSCSW, respectively.

All information is based on a statement released by HeartSciences and disclosed in a recent SEC filing.

In other recent news, HeartSciences Inc. announced an amendment to its Equity Distribution Agreement with Maxim Group LLC, increasing the potential sale of common stock to $25 million through "at the market" offerings. The company will pay Maxim Group a commission of 4.0% for proceeds up to $11,036,310 and 3.0% for amounts exceeding that. Additionally, HeartSciences’ board approved an amendment to its 2023 Equity Incentive Plan, proposing an increase in the maximum number of shares issuable to 1,000,000, pending shareholder approval. The board also granted restricted stock unit awards to executive officers, which will vest upon FDA clearance of certain company devices or a change of control. In corporate governance, HeartSciences amended its bylaws to include a jury trial waiver for internal claims and set a 3% ownership threshold for shareholders to initiate derivative proceedings. The company also filed a Certificate of Designations for Series D Convertible Preferred Stock, linked to a prior announcement of raising $15 million through unit offerings.

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