Spectral AI Inc (NASDAQ:MDAI) announced that it has entered into a fixed-price prepaid advance and standby equity purchase agreement with a longstanding investor.
The company said that the total capacity under the agreement is $30 million which consists of a prepaid advance of $12.5 million.
Of this, $5 million of this was funded today with a fixed conversion price of $3.16. Another $5 million will be paid upon the effectiveness of the Initial Registration to be filed by the company and $2.5 million will be paid 60 days later.
Each tranche of the prepaid advance will mature 12 months from the date of the related funding.
“We are pleased to announce this equity funding as we pivot to commercialization while continuing our research and development activities. Together with our non-dilutive funding from various US Government agencies, this new equity-linked instrument supports our strategic imperatives,” Spectral AI CEO Peter M. Carlson said in a statement.
“We deployed our first burn device in the U.K. last week and continue to focus on clinical trials in the U.S., accelerating towards the commercialization of the diabetic foot ulcer indication and the burn indication.”
Dallas, Texas-based Spectral AI is a predictive AI company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, with initial applications involving patients with burns and diabetic foot ulcers.