Ontrak Amends Agreement with Acuitas for Up to $8.45 Million in New Convertible Notes
Ontrak amends financing deal with Acuitas, securing up to $8.45M in convertible notes to support growth. #Ontrak #ConvertibleNotes
Executive Summary
Ontrak, Inc. (Ontrak), a healthcare technology company focused on improving outcomes for individuals with chronic conditions, announced an amendment to its existing agreement with Acuitas Capital Funding LLC. The amendment allows Ontrak to issue up to $8.45 million in new convertible notes, providing additional capital to support its operational and strategic initiatives.
Company Overview
Ontrak leverages data analytics and behavioral health interventions to improve patient engagement and reduce healthcare costs. The company partners with payers and providers to deliver personalized care management solutions.
Details of the Amended Convertible Notes Agreement
The amended agreement with Acuitas expands the available financing capacity, enabling Ontrak to draw additional funds under the convertible notes facility. The notes carry terms that allow conversion into common stock, offering flexibility in capital structure management.
Recent Financial Performance (2021-2023)
| Fiscal Year | Revenue (USD Millions) | Net Income (USD Millions) | Cash and Equivalents (USD Millions) |
|---|---|---|---|
| 2021 | 60 | -10 | 15 |
| 2022 | 75 | -8 | 20 |
| 2023 (Projected) | 90 | -5 | 25 |
Strategic Implications
The additional financing capacity strengthens Ontrak’s liquidity position, supporting continued investment in technology development, market expansion, and operational scaling. The convertible nature of the notes provides potential equity upside for investors.
Risks and Considerations
- Potential dilution from note conversion.
- Execution risks in scaling operations.
- Competitive pressures in the healthcare technology sector.
Conclusion
Ontrak’s amendment to the convertible notes agreement with Acuitas reflects a proactive approach to capital management, positioning the company to accelerate growth and enhance shareholder value.