Bright Health Group Inc. (BHG) gains a further 9.79% in the aftermarket following the company’s announcement of capital raise for continued growth. In regular trading, the stock fluctuated between $3.25 and $3.81 at 5.02 million shares. BHG closed the day at $3.78, gaining 12.50%, after which the stock reached $4.15 in the after hours. Tuesday’s climb put the stock’s five-day gain at 13.17%.
The integrated care delivery company Bright Health Group Inc. (BHG) provides health insurance plans in the U.S. Currently, the 628.32 million outstanding shares of the company trade at a market capitalization of $2.11 billion.
BHG’s Capital Raise
On December 06, BHG announced a $750 million capital raise for supporting the continued growth of the company. The financing includes two co-investors Cigna Ventures and New Enterprise Associates (NEA). Cigna Ventures is the corporate venture capital partner and an indirect subsidiary of Cigna Corporation, which is wholly owned by the company. Moreover, NEA is Bright Health Group’s largest existing shareholder.
According to the investment terms, both the investors will buy Series A Preferred stock of the company worth $750 million. Further, the per-share purchase price of the stock will be $1000, which has a 5.0% dividend and would be convertible into shares of common stock. For which the initial conversion price will be $4.55 per share approx.
Subject to closing conditions, the expected closing of the financing is in January 2022.
BHG MedArrive Partnership
On November 09, the company announced its partnership with MedArrive for giving in-home, quality care to vulnerable populations in North Carolina. MedArrive is a company that provides services to healthcare providers for extending medical services into the home.
The dreads of Covid-19 while affecting the lives of people worldwide, has caused a positive transformation as well. The far-fetched future has become the now, as most business has extended online. Similarly, care delivery services have also reached into homes through technology. Hence, BHG’s partnership with MedArrive will overcome the virtual gap and let the company extend care into the homes of the customers.
Q3 Financial Highlights
According to the financial results announced on November 11, BHG had total revenue of $1,079 in the third quarter of 2021. This shows an increase of 206.3% year-over-year.
Moreover, the GAAP net loss in the third quarter of 2021, was $296.7 million, showing an increase of $237.5 million from the year-ago period.
