Business
Forian Inc. Announces $12 Million Private Placement of Common Stock
NEWTOWN, Pa., April 12, 2021 /PRNewswire/ -- Forian Inc. (Nasdaq:FORA), a provider of software and technology-enabled services for the healthcare and cannabis
About this update from Forian Inc.
[{"type":"text","content":"NEWTOWN, Pa., April 12, 2021 /PRNewswire/ -- Forian Inc. (Nasdaq:FORA), a provider of software and technology-enabled services for the healthcare and cannabis industries, announced today that it has entered into a securities purchase agreement with a select group of institutional and accredited investors to raise gross proceeds of $12,000,000 resulting from the sale of 1,191,743 shares of its common stock at an average purchase price equal to $10.21 per share. The Company did not engage a placement agent in connection with the private investment in public equity (\"PIPE\") financing.\n\n \n \n \n \n \n \n\n \nInvestors include both unaffiliated investors as well as directors of the Company. An independent Special Committee of Forian's Board of Directors was established to review and negotiate the transaction on behalf of the Company. An institutional investor led the negotiations for the unaffiliated investors. Directors purchased 560,461 shares of common stock at a purchase price of $11.33 per share, which amount represents the consolidated closing bid price of the Company's common stock as reported by the Nasdaq Stock Market LLC on Friday April 9, 2021, the last trading day prior to execution of the securities purchase agreement. Directors participating in the financing include Executive Chairman Max Wygod, Adam Dublin, Stanley Trotman, Dr. Mark Adler and Martin Wygod. Unaffiliated investors purchased 631,282 shares of common stock at a purchase price of $8.95 per share, which price was negotiated on Friday, April 9, 2021, and represents an approximately 15% discount to the preceding day's volume weighted average price. There are no warrants or other securities included with the PIPE financing.\nThe Company expects to use the proceeds of the PIPE financing, together with other available funds, for data acquisition, working capital and general corporate purposes, including potential acquisition or investment in technologies, intellectual property or businesses that complement the Company's business. \nThe securities sold in the PIPE financing have not been registered under the Securities Act of 1933, as amended (the \"Securities Act\"), or any state or other applicable jurisdiction's securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirem...