Augmedix tumbles on deep-discounted stock offering; HCA to chip in

Augmedix

16/11/2023 11:55

** Augmedix Inc's  AUGX.O  shares tumble ~24% to $4.11
premarket after digital health platform's overnight follow-on
prices at steep discount
    ** Co announces 6.25 mln shares, up from 5.5 mln shares, at
$4 for $25 mln raise
    ** Offering price represents 26.3% discount to last sale
    ** Hospital operator HCA Healthcare Inc  HCA.N  and Redmile
Group LLC each indicated to buy up to $5 mln of the offering,
per the SEC filing
    ** Augmedix has ~41.4 mln shares outstanding 
    ** Co says plans to use net offering proceeds for increased
investment in sales and marketing, R&D, and fund growth
    ** Through Weds close, AUGX shares had gained 19% since co
on Nov 6 reported 50% yr/yr rev growth in Q3 to $11.8 mln and
GAAP net loss narrowed to $4.4 mln
    ** On Apr 20, stock surged 89% after co announced
partnership with HCA to accelerate development of AI-powered
patient care documentation
    ** AUGX shares ended 2022 at $1.56
    ** Evercore and William Blair acting as jt bookrunners for
stock offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))