Digital doctor service Babylon has received its board’s authorised maximum of $80 million in total subscriptions from institutional and other accredited investors for its private investment in public equity (PIPE) at a price of $0.42122 per Class A ordinary share.
The subscriptions collectively provide for Babylon’s sale of 189,924,505 Class A ordinary shares to the PIPE investors.
The subscriptions include $61,450,000 in initial subscriptions, including Babylon’s two largest existing institutional investors: Kinnevik and VNV Global.
Babylon stated it anticipates that the gross proceeds from all subscriptions in the PIPE will be $80 million, before deducting offering expenses payable by the company.
The closing of the PIPE is expected to occur on or about 3 November and Babylon stated it intends to use the proceeds to fund the ongoing development of its digital-first platform and services for managing population health, working capital and other general corporate purposes.