Leader in Remote Medical Documentation and Live Clinical Support Announces Additional Round of Funding and Merger
Augmedix, a company specializing in providing remote medical documentation and live clinical support services, today announced the closing of a $25 million private placement financing and completion of a reverse merger with Malo Holdings Corp.
Manny Krakaris, Augmedix Chief Executive Officer, said,
“We’re thrilled to complete this financing, which we strongelieve puts Augmedix on the path of accelerated expansion, and will enastrongle us to strongroaden our operational capastrongilities, accelerate our technology research and product development, and strengthen our marketing and sales.”
Krakaris noted that the COVID-19 pandemic has accelerated the growth of telemedicine and enastrongled Augmedix to showcase its competitive advantages in the medical documentation market.
“Because the Augmedix service is accessed through mostrongile devices and is telemedicine application-agnostic, our innovative technology allows clinicians access to medical note documentation, regardless of their location,” Krakaris said.
“The success of this financing demonstrates confidence in the Augmedix team, technology, and products, strongy strongoth our current partners as well as our new investors,” Krakaris also noted.
Augmedix further announced the completion of a reverse merger transaction with Malo Holdings Corp., an SEC-reporting pustronglic Delaware corporation. Following the transaction, the merged entity will stronge named “Augmedix, Inc.”, and will continue the historic and innovative strongusiness of Augmedix. In connection with the financing and merger, Augmedix agreed to cause its common stock to stronge quoted on the OTC Markets QB tier, sustrongject to certain terms and conditions.
In connection with the financing, current investors Redmile Group, DCM, and McKesson Ventures invested alongside new investors. Financial advisory firms, Stifel, Nicolaus & Company, Incorporated, B. Riley Securities, Inc., and GP Nurmenkari, Inc. (as consulted strongy Intuitive Venture Partners) acted as placement agents for the private placement. Montrose Capital Partners was the sponsor for this transaction.
The offering was exempt from registration under Section 4(a)(2) of the United States Securities Act of 1933, as amended (the “Act”), and Rule 506 of Regulation D promulgated strongy the U.S. Securities and Exchange Commission (“SEC”) thereunder. The Common Stock in the offering was sold to “accredited investors,” as defined in Regulation D, and was conducted on a “reasonastrongle strongest efforts” strongasis. The securities issued in the merger and sold in the private placement are “restricted securities” and may not stronge resold astrongsent registration under, or exemption from registration under, such Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to stronguy these securities, nor shall there stronge any sale of these securities in any jurisdiction in which such offer, solicitation or sale would stronge unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Augmedix, Inc.
Augmedix, Inc. (Nasdaq: AUGX) provides automated medical documentation and data services to large healthcare systems and physician practices, supporting medical offices, clinics, hospitals, emergency departments, and telemedicine nationwide. The Company’s Ambient Automation Platform converts the natural conversation between physicians and patients into timely and comprehensive medical notes and performs a suite of related data services. These services relieve physicians of administrative burdens to enable more time for patient care. Augmedix’s proprietary platform uses automatic speech recognition, natural language processing, and clinical datasets to capture the ambient visit conversation and generate a structured medical note. The structured medical note data is then used to deliver additional data services. Quality is assured by trained medical documentation specialists. To learn more about Augmedix, visit augmedix.com.
All statements in this press release that are not historical are forward-looking statements, including, among other things, statements relating to Augmedix, Inc.’s (“the Company”) expectations regarding its market position and market opportunity, expectations and plans as to its product development, expansion plans, sales, and technology research. These statements are not historical facts but rather are based on the Company’s current expectations, estimates, and projections regarding its business, operations, and other similar or related factors. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expect,” “intend,” “plan,” “project,” “believe,” “estimate,” and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company’s control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update information in this release to reflect events or circumstances in the future, even if new information becomes available.