Augmedix Goes Public Through the Reverse Merger with Malo Holdings

Augmedix, a provider of apps for Google Glass that allows doctors to capture audio-visual data from the doctor-patient interaction and turn it into an EHR in real-time, announced the completion of a reverse merger transaction with Malo Holdings Corp., an SEC-reporting public Delaware corporation.

Financial advisory firms Stifel, Nicolaus & Company, Incorporated, B. Riley Securities, and GP Nurmenkari acted as placement agents for the private placement. Montrose Capital Partners was the sponsor for this transaction.

A total of 132 Digital Health companies were acquired in the first nine months of 2020, according to Mercom’s latest Digital Health Funding and M&A report.

Augmedix also announced the completion of a $25 million private placement financing round. Existing investors Redmile Group, DCM, and McKesson Ventures led the private placement with new investors’ participation.

The combined company will be renamed as Augmedix Inc. Augmedix Inc’s common stocks will trade on the OTC Markets QB tier.

Founded in 2013, the San Francisco-based startup Augmedix has raised $107 million in capital to date. Augmedix serves over 35 specialties and several health systems supporting telemedicine, medical offices, clinics, and hospitals, according to the company.

Manny Krakaris, Augmedix Chief Executive Officer, said, “We’re thrilled to complete this financing, which we believe puts Augmedix on the path of accelerated expansion, and will enable us to broaden our operational capabilities, accelerate our technology research and product development, and strengthen our marketing and sales.”

There were five Digital Health IPOs in Q3 2020. Recently, Amwell, a telehealth provider, announced the pricing of its upsized initial public offering of 41.2 million shares of its Class A common stock at an initial public offering price of $18 per share resulted in total gross proceeds of approximately $742 million. GoodRx, an online pharmacy platform that helps consumers compare medication prices and discounts, raised $1.1 billion in its initial public offering. The company sold 34.6 million shares of its stock at $33 per share.