HealthStream Inc. announced it has raised approximately $40 million through a private placement, with WJRJJ Ventures LLC acquiring 1.5 million shares of the Nashville-based company's common stock.
The transaction, which closed on September 14, involved two components. HealthStream issued 1,355,932 shares to WJRJJ for approximately $40 million at a price of $29.50 per share, while WJRJJ also purchased an additional 144,068 shares directly from CEO Robert A. Frist Jr. for about $4.25 million at the same per-share price.
Willis Johnson, who founded Copart Inc. and currently serves as its chairman, is the owner of WJRJJ Ventures. Johnson said he first became involved with HealthStream through its relationship with Empath Nursing Inc., a company he initially invested in and which was founded in August 2025. HealthStream made a minority investment in Empath in January 2026 and holds approximately 5% ownership. Under a business agreement, the two companies share economic benefits from Empath's use of HealthStream's hStream technology platform for workforce solutions.
"The more I learned about HealthStream's technology and the role it plays in Empath's growth, the more confident I became in the Company's long-term potential," Johnson said.
Robert Frist Jr., who remains HealthStream's largest shareholder with approximately 16.4% of issued and outstanding common stock, called the investment "a reflection of confidence in our team, our strategy, and the opportunity ahead of us as a business."
HealthStream said it will use the net proceeds for general corporate purposes, including continued investment in solutions, working capital, potential acquisitions, and other strategic initiatives.
The shares were issued in reliance on exemptions from registration under the Securities Act of 1933, and HealthStream entered into a registration rights agreement with WJRJJ covering resale of the purchased shares. HealthStream trades on the NASDAQ under the ticker HSTM.
