Guided Therapeutics Raises Funds Aimed at Increasing International Sales and Restarting US FDA Approval Process
NORCROSS, Ga.--(BUSINESS WIRE)--Jan 6, 2020--
Guided Therapeutics, Inc. (Pink Sheets: GTHP), the maker of a rapid and painless cervical cancer detection test based on its patented biophotonic technology, announced today the closing of two separate investments: The first, a Convertible Note issued to Auctus Fund, LLC for $2.4 Million, occurs in three tranches. The first tranche of $700,000 has been received, while the second tranche of $400,000 is contingent upon filing an S-1 registration statement while the last tranche of $1,300,000 is due within 60 days of the S-1 becoming active. Conversion prices of the tranches are based on market price and have a floor of 15 cents per share. Auctus also will receive three year warrants, a portion exercisable at twenty cents and a portion at twenty-five cents. A second financing of $742,000 also closed and is a unit offering consisting of two common shares and preferred shares convertible into three common shares per dollar invested, with four warrants, half exercisable at twenty-five cents and half at seventy-five cents per share. Investors include Company Board Members and other qualified institutional and individual investors.
As a condition of these investments, the Company also needed to achieve significant debt reduction and capitalization restructuring which eliminated variable price convertible debt without floor pricing similar to the new investments. To these ends, the Company has executed agreements to pay off a significant portion of its debt and exchange variable pricing instruments for a combination of cash, common shares and warrants at fixed exercise pricing. The net effect of these transactions, after the last tranche of the Auctus investment is received, is a reduction of debt by over $7 million. Over the past year, including the transactions reported in this announcement, the Company’s debt has been reduced by over $10 million.
“The nearly $3.2 million in near term financing will allow the company to expand international sales and restart its FDA approval process, while at the same time significantly reduces debt and exposure to excessive dilution”, said CEO Gene Cartwright. “The net effect has been to place the company on much firmer footing as it eyes new regulatory approvals and sales orders from China, Russia, the Middle East and the EU in 2020.”
About Guided Therapeutics
Guided Therapeutics, Inc. (Pink Sheets: GTHP) is the maker of a rapid and painless testing platform based on its patented biophotonic technology that utilizes light for the early detection of disease at the cellular level. The Company’s first product is the LuViva® Advanced Cervical Scan, a non-invasive device used to detect cervical disease instantly and at the point of care. In a multi-center clinical trial with women at risk for cervical disease, the technology was able to detect cervical cancer up to two years earlier than conventional modalities, according to published reports. For more information, visit: www.guidedinc.com.
The Guided Therapeutics LuViva ® Advanced Cervical Scan is an investigational device and is limited by federal law to investigational use in the U.S. LuViva, the wave logo and “Early detection, better outcomes” are registered trademarks owned by Guided Therapeutics, Inc.
Forward-Looking Statements Disclaimer: A number of the matters and subject areas discussed in this news release that are not historical or current facts deal with potential future circumstances and developments. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally and also may materially differ from Guided Therapeutics’ actual future experience involving any of or more of such matters and subject areas. Such risks and uncertainties include those related to the early stage of commercialization of products, the uncertainty of market acceptance of products, the uncertainty of development or effectiveness of distribution channels, the intense competition in the medical device industry, the sufficiency of capital raised in prior financings and the ability to realize their expected benefits, the uncertainty of future capital to develop products or continue as a going concern, the uncertainty of regulatory approval of products, and the dependence on licensed intellectual property, as well as those that are more fully described from time to time under the heading “Risk Factors” in Guided Therapeutics’ reports filed with the SEC, including Guided Therapeutics’ Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and subsequent filings.
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CONTACT: Mark Faupel
KEYWORD: UNITED STATES NORTH AMERICA GEORGIA
INDUSTRY KEYWORD: BIOTECHNOLOGY MEDICAL DEVICES HEALTH GENETICS ONCOLOGY
SOURCE: Guided Therapeutics, Inc.
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PUB: 01/06/2020 01:36 PM/DISC: 01/06/2020 01:36 PM