Michael Barbella, Managing Editor10.03.22
Guided Therapeutics Inc. has raised approximately $3.3 million by selling 6.6 million shares of common stock at 50 cents each.
For each common share purchased, investors also will receive one warrant to purchase an additional share for 50 cents and one warrant to purchase an additional share for 65 cents. Both warrants have a term of four years. If the shares are registered within six months, the warrants will not have a cashless exercise option and they do not carry any anti-dilution features. Investors include certain members of the company’s board and other long term investors.
“We are extremely pleased that our existing team of fundamental investors has stepped up to fund the company under reasonable terms, thus positioning us for a future uplisting when market conditions may be more favorable and the company is further along with both the U.S. and Chinese regulators.” CEO Gene Cartwright said. “The amount and timing of the funding should allow us the flexibility to accomplish many of our most important goals over the next 12 to 18 months.”
Guided Therapeutics will use the proceeds to fund the completion and filing of clinical study data needed for U.S. Food and Drug Administration approval of its LuViva Advanced Cervical Scan, which received IRB approval in August for starting the study this quarter. The money also will be used to support international distribution partners to grow sales throughout the remainder of 2022 and into 2023, as well as for general and administrative costs. Some funds will be used to further reduce debt and allow the company to continue its efforts to uplist to Nasdaq. To this point, this bridge financing has brought the company’s stockholders’ equity to nearly break even, assuming current existing exchange agreements are implemented.
As a part of this transaction, the company has agreed to exchange certain debt and equity owned by Auctus Funds LLC, a long term investor in the company. Under terms of the agreement, Auctus will exchange $1,060,911 owed to it in debt and 8,775,000 warrants it currently holds that are priced between 15 cents and 20 cents for $1.95 million worth of units in the new financing, equating to 3.9 million common shares, 3.9 million warrants priced at 50 cents and 3.9 million warrants priced at 65 cents plus residual debt of approximately $490,000 to be paid to Auctus over an 18 month period in four equal installments.
Guided Therapeutics Inc. makes 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. Its 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.
The LuViva Advanced Cervical Scan is an investigational device and is limited by federal law to investigational use in the United States.
For each common share purchased, investors also will receive one warrant to purchase an additional share for 50 cents and one warrant to purchase an additional share for 65 cents. Both warrants have a term of four years. If the shares are registered within six months, the warrants will not have a cashless exercise option and they do not carry any anti-dilution features. Investors include certain members of the company’s board and other long term investors.
“We are extremely pleased that our existing team of fundamental investors has stepped up to fund the company under reasonable terms, thus positioning us for a future uplisting when market conditions may be more favorable and the company is further along with both the U.S. and Chinese regulators.” CEO Gene Cartwright said. “The amount and timing of the funding should allow us the flexibility to accomplish many of our most important goals over the next 12 to 18 months.”
Guided Therapeutics will use the proceeds to fund the completion and filing of clinical study data needed for U.S. Food and Drug Administration approval of its LuViva Advanced Cervical Scan, which received IRB approval in August for starting the study this quarter. The money also will be used to support international distribution partners to grow sales throughout the remainder of 2022 and into 2023, as well as for general and administrative costs. Some funds will be used to further reduce debt and allow the company to continue its efforts to uplist to Nasdaq. To this point, this bridge financing has brought the company’s stockholders’ equity to nearly break even, assuming current existing exchange agreements are implemented.
As a part of this transaction, the company has agreed to exchange certain debt and equity owned by Auctus Funds LLC, a long term investor in the company. Under terms of the agreement, Auctus will exchange $1,060,911 owed to it in debt and 8,775,000 warrants it currently holds that are priced between 15 cents and 20 cents for $1.95 million worth of units in the new financing, equating to 3.9 million common shares, 3.9 million warrants priced at 50 cents and 3.9 million warrants priced at 65 cents plus residual debt of approximately $490,000 to be paid to Auctus over an 18 month period in four equal installments.
Guided Therapeutics Inc. makes 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. Its 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.
The LuViva Advanced Cervical Scan is an investigational device and is limited by federal law to investigational use in the United States.