Deal also includes warrants; proceeds finance manufacturing and sales
By Devika Patel
Knoxville, Tenn., March 20 – LabStyle Innovations Corp. said it raised $400,000 in the second tranche of a $2.03 million private placement of stock on March 16, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal raised $1.63 million on Feb. 25.
The company sold 11,286,444 common shares at $0.18 apiece. The price per share is a 5.88% premium to the Feb. 24 closing share price of $0.17. Labstyle sold 9,064,222 shares in the first tranche and 2,222,222 shares in the second.
The investors also received 50% warrant coverage in the form of two warrants, each with 25% coverage per warrant, or warrants for a total of 4,532,114 shares.
The first nine-month warrant is exercisable at $0.24, and the second three-year warrant is exercisable at $0.30. The strike prices are 41.18% and 76.47% premiums to the Feb. 24 closing share price of $0.17.
Proceeds will be used for manufacturing and sales efforts and general working capital.
The Newark, Del., company develops technology for diabetic self-monitoring of blood glucose.
Issuer: | LabStyle Innovations Corp.
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Issue: | Common shares
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Amount: | $2,031,560
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Shares: | 11,286,444
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Price: | $0.18
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Warrants: | 50% coverage (in the form of two warrants, for 25% coverage per warrant, for a total of 4,532,114 shares)
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Warrant expiration: | Nine months, three years
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Warrant strike price: | $0.24, $0.30
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Settlement date: | Feb. 25 (for $1,631,560), March 16 (for about $400,000)
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Stock symbol: | OTCBB: DRIO
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Stock price: | $0.17 at close Feb. 24
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Market capitalization: | $3.08 million
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