Deal sells convertible preferreds, warrants to lead investor Dicilyon
By Devika Patel
Knoxville, Tenn., Sept. 23 – LabStyle Innovations Corp. said it settled a $4.2 million private placement of convertible preferred stock with lead investor Dicilyon Consulting and Investment Ltd., which invested $3 million.
The preferreds are convertible into 53,418,264 common shares at $0.07928 per share, a 27.93% discount to the Sept. 22 closing share price of $0.11. The company also said in a press release that the conversion price is a 20% discount to the volume weighted average of the stock from Aug. 21 through Sept. 22, which was $0.0991.
If the preferreds were fully converted, the investors in this offering would hold approximately 40% of LabStyle’s outstanding shares.
The investors also received warrants for 26,709,132 common shares, or 50% coverage, which are each exercisable at $0.0951 for four years. The strike price is a 13.55% discount to the Sept. 22 closing share price.
Proceeds will be used to leverage the positive feedback from the company’s soft launch of Dario in the United Kingdom and New Zealand, to ramp up manufacturing and sales efforts, for regulatory work associated with LabStyle’s pending FDA application for Dario, as well as for general working capital.
The Newark, Del., company develops technology for diabetic self-monitoring of blood glucose.
| Issuer: | LabStyle Innovations Corp.
|
| Issue: | Convertible preferred stock
|
| Amount: | $4.2 million
|
| Conversion price: | $0.07928
|
| Conversion ratio: | Into 53,418,264 shares
|
| Warrants: | For 26,709,132 shares (50% coverage)
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $0.0951
|
| Investor: | Dicilyon Consulting and Investment Ltd. (lead, for $3 million)
|
| Settlement date: | Sept. 23
|
| Stock symbol: | OTCBB: DRIO
|
| Stock price: | $0.11 at close Sept. 22
|
| Market capitalization: | $2.8 million
|
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