The Oncology Institute, Inc. (NASDAQ:TOI) Q2 2022 Earnings Conference Call August 9, 2022 5:00 PM ET

Company Participants

Mark Hueppelsheuser - General Counsel

Brad Hively - Chief Executive Officer

Mihir Shah - Chief Financial Officer

Conference Call Participants

Taji Phillips - Jefferies

Christian Borgmeyer - Cowen

Operator

Good afternoon, and welcome to The Oncology Institute's Second Quarter 2022 Earnings Conference Call. Today's call is being recorded and we have allocated one hour for prepare marks and Q&A.

At this time, I'd like to turn the conference over to Mark Hueppelsheuser, General Counsel at TOI. Thank you. You may begin.

Mark Hueppelsheuser

Before we get started, I would like to remind you of the company's safe harbor language. Management may make forward-looking statements including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our filings with the SEC.

This call will also discuss non-GAAP financial measures, such as adjusted EBITDA. Reconciliation of these non-GAAP measures to the most comparable GAAP measures are included in the earnings release, furnished to the SEC and available on our website. Joining me on the call today is our CEO, Brad Hively; and our CFO, Mihir Shah. Following our prepared remarks, we'll open the call for your questions.

With that I'll turn the call over to Brad.

Brad Hively

Thanks, Mark and thank you to everyone, joining the call today. Before we get into the quarterly details, I'd like to bring your attention to an important development that we expect to give us the financial runway we need to achieve our growth plans. We completed a $110 million strategic investment from Deerfield Management, through senior secured convertible notes. The convertible notes bear interest at 4% per annum and mature on August 8, 2027 and are convertible into shares of the company's common stock. The notes have an initial conversion price of approximately $8.57, representing an approximate premium of 30% over the closing price of TOI's common stock on August 8, 2022.

This investment will provide TOI with important growth capital to continue our expansion into new markets, with our differentiated value-based approach to oncology. This represents a significant milestone in our journey to disrupt the $200 billion-plus US oncology market. We remain highly optimistic about our future and we are excited about this new investment from Deerfield, one of the most active and experienced health care investors in the country.