Company: HCTI
Filing Date: 2025-05-09
Form Type: S-1/A
Source: 0001213900-25-041190
Chunk: 18

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-09
Form: S-1/A
Chunk 18
---
 industry, market and economic conditions. This percentage decline,
as an absolute number and as a percentage of our overall market capitalization, may be greater than would occur in the absence of a reverse
stock split.

Under the Purchase Warrants, a reverse stock
split is an adjustment trigger and could result in the lowering of the exercise price of the Purchase Warrants (after taking into account
the normal pro rata increase in the exercise price that would result from reverse stock splits generally). However, a reverse stock split
will likely have no effect on the exercise price of the Series B Warrants as the Company is expected effect the reverse stock split after
all Series B Warrants have been exercised, which is likely to occur after the adjustment period at a zero exercise price. If the exercise
price of the Series A Warrants is reset to the floor price during the adjustment period the Company’s expected reverse stock split
would not have any effect on the exercise price of the Series A Warrants, other than the normal pro rata adjustments that are made to
warrants in reverse stock splits.

A reverse stock split may decrease the liquidity
of our Common Stock and result in higher transaction costs. The liquidity of our Common Stock may be negatively impacted by the reduced
number of shares outstanding after the reverse stock split, which would be exacerbated if the stock price does not increase following
the split. In addition, a reverse stock split would increase the number of stockholders owning “odd lots” of fewer than 100 shares,
trading in which generally results in higher transaction costs. Accordingly, a reverse stock split may not achieve the desired results
of increasing marketability and liquidity as described above.

The implementation of a reverse stock split
would result in an effective increase in the authorized number of shares of Common Stock available for issuance, which could, under certain
circumstances, have anti-takeover implications. The additional shares of Common Stock available for issuance could be used by us
to oppose a hostile takeover attempt or to delay or prevent changes in control or in our management. Although the reverse stock split
has been prompted by business and financial considerations, and not by the threat of any hostile takeover attempt (nor is the Board currently
aware of any such attempts directed at us), stockholders should be aware that approval of the reverse stock split could facilitate future
efforts by us to deter or prevent changes in control, including transactions in which stockholders might otherwise receive a premium
for their shares over then-current market prices.

Stockholders should also