VSee Health, Inc. closed a private placement that raised approximately $6.0 million in gross proceeds. The transaction involved the sale of 9,836,065 shares of common stock and warrants to purchase up to 19,672,130 additional shares at an effective combined price of $0.61 per share. A.G.P./Alliance Global Partners served as the sole placement agent, and the offering is expected to close on or about December 1, 2025.
The financing comes at a time when VSee Health’s financials show rapid revenue growth but persistent losses. For 2024 the company generated $10.42 million in revenue, an 80.74% increase from $5.77 million in 2023, yet it posted a net loss of $57.70 million and a negative EBITDA of $6.48 million. The company’s current ratio sits at 0.11 and shareholder equity is negative, underscoring a weak financial health profile and a high cash burn rate that necessitates additional liquidity.
Management said the proceeds will be used to strengthen the balance sheet, fund ongoing expansion of its AI‑powered telehealth platform, and pursue new government and commercial contracts. The company recently secured a $6 million first‑year government contract, a $560 k oncology network agreement, and a $444 k mental‑health services contract. It also activated new hospitals on its iDoc platform, projected to generate $500 k in annual revenue, and achieved FedRAMP Moderate authorization, opening the door to further federal opportunities.
"We are deeply grateful for the incredible support from our shareholders and the broader public. This is just the beginning of an exciting chapter for VSee Health," said Dr. Imo Aisiku, Co‑CEO. Dr. Milton Chen added, "Our technology is designed to adapt to the evolving requirements of our partners while maintaining strong security. This flexibility ensures long‑term success for government health initiatives." The co‑CEOs emphasized their commitment to executing contracts with precision and passion, signaling confidence in the company’s growth trajectory.
The announcement triggered a 5.1% drop in VSee Health’s pre‑market trading on November 26, 2025. Investors reacted primarily to the equity raise, which signals dilution and highlights the company’s need for capital amid ongoing cash burn. The market’s short‑term negative sentiment contrasts with the company’s strategic intent to use the funds for platform expansion and contract fulfillment.
In sum, the $6 million private placement provides VSee Health with the liquidity required to sustain its growth initiatives and address its financial challenges. While the equity issuance introduces dilution, the infusion is critical for maintaining operations, expanding the telehealth platform, and capitalizing on new government and commercial opportunities.
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