Augmedix announces closing of public offering of common stock

Augmedix, Inc. announced the closing of a registered public offering of common stock for aggregate gross proceeds of $28.75 million, prior to deducting underwriting discounts, commissions, and other offering expenses. The incremental capital, which includes a lead investment from existing shareholders HCA Healthcare, Inc. (NYSE: HCA) and Redmile Group, LLC, is intended to drive incremental revenue growth by expanding the company’s commercial team, accelerating the company’s automation initiatives, and advancing the company’s efforts to create an open ecosystem of integrations and partnerships.

“Augmedix’s leading ambient technology, structured data and bi-directional communication channel to the point of care makes us uniquely positioned to deliver significant value to enterprise health systems and the broader healthcare ecosystem,” said Manny Krakaris, Chief Executive Officer at Augmedix. “In recent quarters we have significantly strengthened our market position by establishing a highly collaborative relationship with HCA Healthcare, introducing a range of new products, and driving accelerated commercial adoption. From this position of strength and with proceeds from this financing, we will build upon our leadership position in the rapidly growing documentation market and accelerate our efforts to forge new integrations and partnerships, which is critical to effectuating change at the point of care and reinforcing our long-term strategic positioning in the market. As we move swiftly to capitalize on this opportunity, we are encouraged to have $5 million in aggregate participation and backing from critical partners HCA Healthcare and Redmile Group, which serves as validation of our strategy.”

“We are excited to deepen our partnership with Augmedix, taking a significant step further to transform healthcare through groundbreaking AI technology,” said John Doulis, MD, VP Data Services and Technology Innovation, HCA Healthcare. “This strategic investment aligns with our vision to redefine provider and patient experiences and enables us to accelerate our work to bring ambient documentation to acute care settings at scale.”

Augmedix intends to use the net proceeds from this equity raise to expand its salesforce, targeting both new customers and further expansion within existing customers, to drive incremental revenue growth. Additionally, Augmedix intends to accelerate the development of its product roadmap to address opportunities that significantly increase the addressable market for its products.

Added Krakaris, “Our financial results for the first nine months of 2023 demonstrated that we were well on our way to achieving our goals of reaching cashflow breakeven by the end of 2024, but our increasing market success has led us to lean into our competitive advantage and invest further in our commercial capabilities to extend our market reach. Our clients are embracing the Augmedix platform, asking for more capabilities – faster – and the resources we will bring to bear should enable us to realize such incremental opportunities sooner. In light of the increased investment in sales, research, development, product and marketing, Augmedix now expects to reach breakeven, on a cash flow from operations basis before net interest expense, by the end of 2025. Based on this revised plan, we continue to have the capital necessary to reach cash flow sustainability.”
MB Bureau