Ontrak starts at-the-market offering for up to $50 million more cumulative preferred stock

By James McCandless

San Antonio, Sept. 14 – Ontrak, Inc. started an at-the-market offering for up to $50 million more of its series A cumulative perpetual preferred stock with a dividend of 9.5%, according to filings with the Securities and Exchange Commission.

B. Riley Securities, Inc. is the sales agent.

The company originally priced $42.5 million of the preferreds on Aug. 21, with the full $6,375,000 greenshoe exercised on Sept. 8.

Dividends are payable on Feb. 28, May 30, Aug. 31, and Nov. 30 starting on Nov. 30, 2020.

The preferreds are redeemable on or after Aug. 21, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a delisting event or within 120 days after a change of control at par.

Ontrak plans to use the proceeds to fund a separate dividend account and for general corporate purposes, which may include working capital, M&A and investments in technology.

On Monday morning, the preferreds (Nasdaq: OTRKP) were up 24 cents to $25.34 on volume of about 300 shares.

Ontrak is a Santa Monica, Calif.-based medical technology company.

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