PEACHTREE CORNERS, Ga.--(BUSINESS WIRE)--Guided Therapeutics, Inc. (OTCQB: GTHP), the maker of a rapid and painless testing platform based on its patented biophotonic technology, announced today that it has thus far raised a total of US $1.1 million under the terms of a Series F Preferred Stock Offering. The private placement offering targeted at least U.S. $1 million and the financing can continue to raise additional funds until closing this tranche, forecast for later this month.
As specified by terms of the investment, proceeds from the Series F Financing were to make the final payment of $750,000 due to GPB Holdings, LLC and to conduct the Company sponsored U.S. FDA clinical trial this year for its flagship product the LuViva Advanced Cervical Scan. The final payment was made to GPB on January 9, 2021, which satisfied the security lien on the Company’s assets and removed over $5 million in liabilities from the Company’s balance sheet. Completing enrollment in the FDA study this year is the Company’s most critical milestone and funds from the Series F Financing, cash on hand and revenues from existing purchase orders will be used to complete enrollment in the FDA study.
The Series F Preferred shares are convertible at a fixed price of 25 cents per share, carry a 6% annual dividend and could potentially include an additional dividend of 15% after twelve months if the Company is unable to uplist to a national exchange or complete its FDA study. The dividends can be paid in cash or common shares at the option of the Company. Aspen Capital acted as Financial Advisor to the Company with respect to the private placement.
“In 2020 we identified making the final payment to GPB and completing the FDA study as necessary to the existence and significant growth of our Company. We are extremely pleased that we have been able to raise sufficient funds for these purposes, pending the final closing of the Series F financing,” said Gene Cartwright, Guided Therapeutics CEO. “Since we have reached agreement with the FDA regarding the study protocol, we are now engaged with clinical study centers that will enroll their patients in our study and are actively building clinical trial devices. It is now full speed ahead with the study.”
About Guided Therapeutics
Guided Therapeutics, Inc. (OTCQB: 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, 2019 and subsequent filings.