HealthStream raises $40M in private placement to WJRJJ Ventures

HealthStream, Inc. (NASDAQ: HSTM) completed a private placement transaction in which WJRJJ Ventures, LLC acquired 1.5 million shares of the company's common stock, according to a press release from the Nashville-based healthcare technology company.

HealthStream issued 1,355,932 new shares to WJRJJ at $29.50 per share, generating approximately $40 million in cash proceeds. An additional 144,068 shares were sold directly by Chief Executive Officer Robert A. Frist, Jr. to WJRJJ for approximately $4.25 million, also at $29.50 per share. The transaction closed September 14, 2026.

Following the sale, Frist remains the company's largest shareholder with a beneficial ownership of approximately 16.4% of issued and outstanding common stock.

WJRJJ is owned by Willis Johnson, a Nashville-area entrepreneur who founded and serves as chairman of Copart, Inc. (NASDAQ: CPRT), an online vehicle salvage and auction company. Johnson was also the initial investor in Empath Nursing, Inc., a clinical workforce development company in which HealthStream holds an approximately 5% minority stake acquired in January 2026.

HealthStream said it intends to use the net proceeds for general corporate purposes, including investment in its solutions, working capital, potential acquisitions, and other strategic initiatives.

The shares issued to WJRJJ were not registered under the Securities Act of 1933 and were sold under exemptions from registration. HealthStream also entered into a registration rights agreement covering the resale of shares purchased by WJRJJ from both the company and Frist.

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