NEW YORK - Marpai, Inc. (NASDAQ:MRAI), a Third-Party Administrator (TPA) company in the self-funded employer health plans sector, has renegotiated its payment schedule with AXA S.A. and secured additional financing from Libertas Funding, LLC. The amendment with AXA offers Marpai an extension on payment terms and reduces its 2024 payment obligation to $473,688, with further payments deferred to 2025. Additionally, AXA has agreed to potential reductions in Marpai's total payment obligations by up to $3 million upon meeting certain criteria, including maintaining its listing on a national securities exchange.
Marpai's CEO, Damien Lamendola, has committed to a $3 million equity investment in the company within the year, reinforcing his confidence in the business. "We are very pleased to have the support of the team at AXA and this potentially removes a significant overhang for our business and allows the Company to push forward aggressively on our growth actions," Lamendola stated.
In a separate arrangement, Marpai has received $1.7 million in revenue-based financing from Libertas, a company known for providing over $2.6 billion in funding to small and medium-sized businesses since 2016. The funds are expected to address short-term working capital needs and allow Marpai to continue its operational plans without shareholder dilution. "Libertas has provided Marpai with flexible capital that allows us to continue to execute our operating plan without diluting shareholders," said Steve Johnson, Marpai's Chief Financial Officer.
Marpai operates nationwide, offering access to leading provider networks and delivering health plan services to employers who self-fund their employee health benefits. The TPA market, which Marpai is part of, represents over $1 trillion in annual claims.
This financial news is based on a press release statement and does not reflect any independent analysis or opinion. The forward-looking statements in the press release involve risks and uncertainties, and actual results may differ from those projected. Investors are advised to read Marpai's filings with the Securities and Exchange Commission for a more detailed understanding of the company and the potential risks involved in such forward-looking statements.
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