Company: HCTI
Filing Date: 2025-05-09
Form Type: S-1/A
Source: 0001213900-25-041190
Chunk: 43

Company: Healthcare Triangle, Inc.
Filing Date: 2025-05-09
Form: S-1/A
Chunk 43
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 up to $5,200,000 which will result in gross proceeds to the Company in
the amount of up to $4,420,000 due to the original issue discount, and warrants (the “Warrants”) to purchase a number of shares
of the Company’s common stock (the “Warrant Shares”) equal to 50% of the face value of the Notes divided by the volume
weighted average price, in three tranches.

Under the first tranche of funding, which closed
upon signing of the Securities Purchase Agreement on December 28, 2023, the Company issued a Note to the Investor in the principal amount
of $2,000,000 which resulted in gross proceeds to the Company of $1,700,000 (the “First Tranche Note”) and Warrants to purchase
up to an aggregate of 357,500 Warrant Shares (the “First Tranche Warrants”).

Each Note matures 18 months after issuance, does
not bear any interest unless an event of default occurs, in which case the Note will bear interest at an annual rate of 18%, and is convertible
into shares of the Company’s Common Stock (the “Conversion Shares”) at an initial conversion price equal to $3.44688,
provided that if an event of default has occurred and is continuing without cure, the conversion price will be the lesser of (i) $3.44688,
(ii) 95% of the average of the three lowest daily volume weighted average prices of the Common Stock during the 20 trading days immediately
preceding the notice of conversion of the Note, and (iii) 80% of the lowest daily volume weighted average price in the 10 trading days
immediately preceding the applicable conversion date, subject to adjustment as further specified in the Note. Each Note is fully repayable
in cash upon maturity. In addition, the Investor has the option of requiring prepayment of up to 25% of the issuance amount of a subsequent
financing.

The Warrants are exercisable at an initial exercise
price of $3.44688 per share, subject to adjustment. The Warrants carry a 5-year term and, if not exercised, will terminate on December
28, 2028.

The securities were issued and sold in reliance
upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) promulgated
thereunder since, among other