PALO ALTO, Calif.--(BUSINESS WIRE)--Theranos, Inc. announced today the successful closing of an exchange offer designed to recapitalize its most recent investors. Holders of more than 99 percent of the shares eligible for the transaction elected to participate. Participants received new shares of the Company’s preferred stock in exchange for their existing preferred stock. Theranos CEO Elizabeth Holmes contributed shares to the Company and gave up equity to offset potential dilution to non-participating shareholders. The transaction unifies the support of Theranos’ major investors as the Company moves toward commercializing its innovative technologies. All participating shareholders provided a release of any potential claims against the Company.
On May 1, Theranos announced the resolution of two lawsuits by Partner Fund Management LP (PFM), a hedge fund and investor in the Company. Last month, Theranos announced the resolution of all outstanding legal and regulatory proceedings between the Company and Centers for Medicare & Medicaid Services (CMS) and the resolution of all existing or potential claims by the Arizona Attorney General.
Founded in 2003 by Elizabeth Holmes, Theranos, Inc. is a health technology company headquartered in Palo Alto, Calif. Its proprietary miniLab platform is designed to enable earlier disease detection and intervention by facilitating low-cost small-sample collection, testing, and rapid communication of diagnostic information in distributed settings. To learn more about Theranos, visit www.theranos.com.