Company: HCTI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026218
Chunk: 1376

Company: Healthcare Triangle, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1376
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the Securities Purchase Agreement with the selling stockholder, pursuant to which the Company agreed to issue to the selling stockholder,
in a private placement (the “Private Placement”), Senior Secured 15% Original Issue Discount Convertible Promissory Notes
(the “Notes”) in the aggregate principal amount of 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 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 and Warrants to purchase up to an aggregate of 357,500 Warrant Shares. The
Note and Warrants issued in the first tranche of funding have an initial fixed conversion and 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 Company received
the first tranche of $1,700,000 on December 29, 2023.

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