Uphealth Inc. (UPH) Stock Plummets Following Pricing for Underwritten Public Offering

Uphealth Inc. (UPH) stock prices were down by 13.86% as of the market closing on October 4th, 2021. This brought the price per share up to USD$2.61 at the end of the trading day. Subsequent premarket fluctuations have seen the stock plummet by 28.74%, bringing it down to USD$1.86.

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UPH Stock’s Public Offering

October 4th, 2021 saw UPH stock announce the pricing of its previously announced underwritten public offering. The offering will facilitate the sale of 23 million shares of its common stock, with each share being sold at a price of USD$1.75 per share. Furthermore, the company has granted underwriters a 30-day option to purchase up to an addition 3.45 million additional shares of its common stock. The gross proceeds generated from the undertaking of the offering are expected to be USD$40.25 million. These funds are expected to be allocated towards working capital and other general corporate purposes. This includes licenses acquisitions and other strategic growth activities. The company will also allocate resources towards the repayment of certain obligations in regard to its June 2021 business combination.

Collaboration with DCR

UPH stock announced entering into an agreement with the Democratic Republic of Congo through its venture partner, TSHELA. The company is set to construct 260 state of the art digital clinicals and healthcare centers. These clinics and healthcare centers are designed to provide high quality, affordable healthcare across the country. The healthcare centers will be equipped with the company’s proprietary technology for comprehensive digital patient care. The centers are forecasted to be constructed by the end of the year in time to serve patients early on in 2022.

Details of the Partnership

The company expects to generate revenues in the amount of USD$136 million over the next five years as a result of its agreement with the DRC. UPH stock is expecting to receive roughly USD$66.6 million from the transaction. The collaboration is expected to dramatically improve access to healthcare for millions of patients over time. The combination of the company’s technology platforms and digital health infrastructure will serve to facilitate the accessibility of affordable, high quality care.

Future Outlook for UPH Stock

UPH stock reported a strong quarter, consolidating its upcoming quarters with the undertaking of an underwritten public offering. The company is keen to capitalize on the opportunities afforded by the generation of the additional capital. Current and potential investors are hopeful that management will be able to leverage the resources at its disposal. This is hoped to usher in consistent and organic growth in shareholder value over the long term.