Forian enters securities purchase agreement with select group of institutional and accredited investors to raise gross proceeds of $12M

Forian Inc. (NASDAQ:FORA) said it has entered into a securities purchase agreement with a select group of institutional and accredited investors to raise gross proceeds of $12,000,000 resulting from the sale of 1,191,743 shares of its common stock at an average purchase price equal to $10.21 per share. 

The company, a provider of software and technology-enabled services for the healthcare and cannabis industries, said it did not engage a placement agent in connection with the private investment in public equity (PIPE) financing.

Forian said it expects to use the proceeds of the PIPE financing, together with other available funds, for data acquisition, working capital and general corporate purposes, including potential acquisition or investment in technologies, intellectual property or businesses that complement the company’s business.

READ: Helix Technologies merges with MOR Analytics to form cannabis commercial analytics firm, Forian Inc

Investors in the PIPE financing include both unaffiliated investors as well as directors of the company. It said an independent Special Committee of Forian’s board of directors was established to review and negotiate the transaction on behalf of the company and an institutional investor led the negotiations for the unaffiliated investors.

The company noted that directors purchased 560,461 shares of common stock at a purchase price of $11.33 per share, which amount represents the consolidated closing bid price of the company’s common stock as reported by the Nasdaq on Friday, April 9, 2021, the last trading day prior to execution of the securities purchase agreement. Directors participating in the financing include Forian executive chairman Max Wygod, Adam Dublin, Stanley Trotman, Dr Mark Adler and Martin Wygod. 

Unaffiliated investors purchased 631,282 shares of common stock at a purchase price of $8.95 per share, which price was negotiated on Friday, April 9, 2021, and represents an approximately 15% discount to the preceding day’s volume-weighted average price. There are no warrants or other securities included with the PIPE financing.

The securities sold in the PIPE financing have not been registered under the Securities Act of 1933, as amended or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. 

Forian provides a unique suite of SaaS solutions, data management capabilities and proprietary data and analytics to optimize and measure operational, clinical and financial performance for customers within the traditional and emerging life sciences, healthcare payer and provider segments, as well as cannabis dispensaries, manufacturers, cultivators and regulators.

The company came into being when Helix Technologies Inc, an operating services platform provider to the legal cannabis industry, merged with Medical Outcomes Research Analytics LLC (MOR), a healthcare data provider. Forian began trading on the Nasdaq capital market under the symbol FORA on March 3.

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Story by ProactiveInvestors