Bright Health Stock Makes A Stunning Move After Raising $750 Million From Cigna

During the week, the stock market of Bright Health Group is markedly soared, generally from $3.1100 to the current price of $4.2899, resulting in a 37% profit. Recently this morning, it was proclaimed that plans to raise $750 million in funding from Cigna Ventures, a wholly-owned subsidiary of Cigna Corporation. New Enterprise Associate (NEA), one of the existing shareholders, will join as co-investors. Both investors will purchase $1,000 per share convertible perpetual preferred stock under the agreement terms. At an initial conversion price of around $4.55 per share, the shares will be convertible into the corporation’s common stock, resulting in a 25% premium to its trailing 10-day average price.

The financing will thereafter conclude in January 2022, subject to usual closing conditions, and will not require any further regulatory approvals. As indicated by today’s surge, investors were impressed with the news, and many anticipate it will fuel a more significant rally in Bright Health’s stock. Plus, on Tuesday, Bright Health Group confirmed its revenue forecast for 2021 of $4.1 billion to $4.2 billion and offered the company’s first forecast for next year. In 2022, Bright Health expects revenue to grow by about 50% to between $6.3 billion and $6.5 billion.