Recently Augmedix, the digital clinical documentation company, raised $ 40 million from a new IPO. The company, which trades on the Nasdaq under the symbol AUGX, offered a total of 10,000,000 shares of common stock at $ 4 per share.
According to the press release, the syndicate banks had a 30-day option from the date of the IPO to purchase up to 1.5 million additional common shares at the IPO price.
That news comes roughly a year after the company announced it had shut down $ 25 million private placement that would merge the company with Malo Holdings, a SPAC company. This reverse merger was listed by the company under over-the-counter (OTC) securities. However, the company’s most recent IPO “listed” the company on the Nasdaq.
WHY IT IS IMPORTANT
More and more digital health companies are entering the public market. In In 2020, Rock Health reported on six new digital health IPOs and the reverse merger of Augmedix. In the first half of 2021, six companies completed an IPO, five completed a SPAC merger, and 11 announced SPAC mergers, expected to close in 2021, according to a Rock Health report.
THE BIGGER TREND
Augmedix was founded in 2012 and made its sponsorship debut in 2014 with a Invested $ 3.2 million to develop a Google Glass clinical documentation service for clinicians. Since then, the company has gone through a number of funding rounds before the reverse merger in 2020.
Several companies are now working on medical transcription. Recently voice-activated medical assistant Notable announced a $ 100 million financing. Others in this area include Robin Healthcare, which developed an AI-powered workflow management tool, and Suki, which developed a natural language processing system to help providers reduce their paperwork.