QT Imaging raises $18 million in private placement financing

QT Imaging Holdings Inc. (OTCQB: QTIH) announced it has entered into a securities purchase agreement for a private investment in public equity financing expected to generate approximately $18 million in gross proceeds before fees and expenses.

The medical device company, which develops body imaging systems using low frequency sound waves, said the fully subscribed private placement included participation from Sio Capital Management and other institutional and existing investors. Ladenburg Thalmann & Co. Inc. served as the exclusive placement agent.

The company plans to use $5 million of the net proceeds to repay part of its senior secured term loan with Lynrock Lake Master Fund LP. The remaining funds will be allocated to expanding U.S. and global go-to-market activities and deploying its QTI Cloud Platform.

Under the agreement terms, QT Imaging is selling 12,120,798 shares of common stock and warrants to purchase an equal number of shares at $1.50 per share. The warrants are exercisable at $1.50 per share for cash only and expire five years from issuance. The financing is expected to close on or before October 3, 2025, subject to customary closing conditions.

Chief Executive Officer Dr. Raluca Dinu stated the investment positions the company to execute its global growth strategy and comes as it prepares to relist on NASDAQ.

The securities were offered under Section 4(a)(2) of the Securities Act of 1933 and Regulation D to accredited investors and qualified institutional buyers. The company has agreed to file registration statements with the Securities and Exchange Commission covering resale of the unregistered securities.

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