PRIVATE MARKETS
Family Office Mitchell Companies Leads $12m Placement in Marpai
The family office's convertible preferred investment is intended to fund the healthcare administration company's technology roadmap and strengthen its balance sheet.
Marpai, Inc. (OTCQX: MRAI), a healthcare technology company providing third-party administration and pharmacy benefit management services, has entered into securities purchase agreements with accredited investors for a $12 million private placement of newly designated convertible preferred stock. The offering was led by Mitchell Companies, a family office and investment platform focused on industrial services, technology-enabled services, healthcare and energy businesses.
Terms of the preferred stock
Under the agreement, 12,100 shares of preferred stock were sold at $1,000 per share, with an initial conversion price of $1.00. Holders will be entitled to an 8% dividend, payable in shares of common stock, upon a liquidity event or conversion. The preferred stock automatically converts into common stock upon a qualified public offering or a vote of 60% of preferred stockholders.
Family office backing for growth plans
Marpai Chief Executive Damien Lamendola called the investment "a massive catalyst for Marpai," saying it "ensures we are well capitalized to execute our strategic vision, accelerate our technology roadmap, and scale our operations." Steve Mitchell, Chairman of Mitchell Companies, said the firm's team has "immense confidence in Damien Lamendola and the entire Marpai leadership group," adding that Marpai is "uniquely positioned to build a highly differentiated, world-class healthcare services platform."
Marpai supports self-funded employer health plans with technology intended to reduce healthcare spend and improve member outcomes. The securities have not been registered under the Securities Act of 1933 and may not be sold in the United States absent registration or an applicable exemption.