Healthcare tech company Forian Inc. (NASDAQ: FORA) has raised $24 million through a convertible note offering. The company said in a statement that the notes are convertible into shares of the company’s common stock at a conversion price of $11.98, the consolidated closing bid price of its common stock as reported by the Nasdaq on Tuesday, August 31, 2021. In addition to the fundraising, Forian appointed Michael Vesey as Chief Financial Officer effective September 2, 2021. Vesey will succeed Clifford Farren, who will remain with Forian in an advisory capacity through the end of the year to ensure an orderly transition.
“Michael brings a successful history of driving results and positioning emerging companies for growth, and we are happy to welcome him to our team,” said Max Wygod, Executive Chairman of Forian. Max continued, “As I mentioned on our last earnings call, I believe it is an exciting time at Forian with our new products expected to be released in market and meaningful growing backlog and pipeline giving us a solid opportunity for future substantial revenue growth.”
Vesey was most recently the Chief Financial Officer of Wayside Technology Group, Inc. (Nasdaq: WSTG), a provider of cyber security, software and technology solutions. During his five-year tenure with Wayside, Vesey led multiple acquisitions that facilitated the organization’s shift to cloud marketplace, resulting in a significant increase in average share price over a two-year period.
“On behalf of our entire team at Forian, I share with Cliff our gratitude for his efforts during his tenure as our Chief Financial Officer,” said Dan Barton, Forian’s Chief Executive Officer. “Over the past year, Cliff supported our combination with Helix Technologies and listing on Nasdaq. We wish Cliff all the best in the chapters ahead as he focuses on his health and future endeavors.”
Investors of the convertibles included both unaffiliated investors as well as a director of the company. Wygod purchased $6,000,000 principal amount of Notes. Unaffiliated investors purchased the remaining $18,000,000 principal amount of Notes. An independent Special Committee of Forian’s Board of Directors was established to review and negotiate the transaction on behalf of the Company. Two institutional investors led the negotiations for the unaffiliated investors.
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.