secwatch.observer — SEC 8-K summary
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Issuer:     Ontrak, Inc. (—)
CIK:        0001136174
Form:       8-K
Filed at:   2024-03-28T23:59:59+00:00
Accession:  0001628280-24-013577
Event type: debt
Sentiment:  neutral
Materiality: 0.70
Item codes: 1.01, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Ontrak enters $15M senior secured convertible note facility with Acuitas; warrants at 200% coverage
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- Issued $1.5M initial demand note to Acuitas on April 1, 2024; Acuitas may purchase up to $13.5M additional notes through March 2025.
- Each demand note includes a warrant with 200% coverage; initial warrant exercise price capped at $0.36 (lower of $0.36 or 80% of bid).
- All outstanding keep well warrants to be replaced with new warrants at $0.36 exercise price, contingent on stockholder approval.
- Stockholder approval required for warrant issuances and conversion shares; conversion price of existing note amended to lesser of $0.36 or 80% of bid.
- Public offering warrant holders agreed to reduce exercise price to $0.36 or lowest VWAP in 5-day period following announcement.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1136174/000162828024013577/0001628280-24-013577-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1136174/000162828024013577/cats-20240328.htm
  HTML page:      https://secwatch.observer/filing/0001628280-24-013577

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