Know Labs secures $1.655 million in unit offering

SEATTLE - Know Labs, Inc. (NYSE American: KNW), a company specializing in non-invasive medical diagnostic technology, announced the completion of a financing round on Thursday, raising $1.655 million through the sale of units at $0.26 each. The offering, which closed on August 15, 2024, consisted of common stock shares and warrants to purchase additional shares at the offering price.

The proceeds from the offering are earmarked for various corporate purposes, including product development, clinical studies, general and administrative costs, intellectual property, and working capital. The company's immediate focus is the development of a non-invasive glucose monitor, which is pending U.S. Food and Drug Administration clearance before it can be marketed.

Under the terms of the underwriting agreement dated August 7, 2024, Boustead Securities, LLC and The Benchmark Company, LLC, the advisors in the transaction, have been granted a right of first refusal for future public and private equity offerings by Know Labs. Additionally, the advisors received compensation in the form of a 5% cash fee of the aggregate gross proceeds and warrants to purchase 636,538 shares of common stock.

The offering was made pursuant to an effective shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission on December 22, 2023, and declared effective on January 11, 2024. The prospectus supplement related to the offering was dated August 15, 2024.

Know Labs' patented and patent-pending technology utilizes spectroscopy to identify unique molecular signatures, which has potential applications beyond glucose monitoring, including other lab-based tests that could benefit from non-invasive and real-time monitoring solutions.

The company's latest financial activities and forward-looking statements will be detailed in an 8-K filing with the Securities and Exchange Commission, expected on or about today. These statements include plans for financing, trends affecting the company's financial condition or results of operations, growth and operating strategies, and product performance. As with all forward-looking statements, they are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

This news is based on a press release statement from Know Labs, Inc.

In other recent news, Know Labs, Inc. has released its Q3 financials for fiscal year 2024, reporting a net loss of $4.1 million, an improvement from the previous year. The company also noted decreased research and development expenses, attributed to the successful completion of product development milestones. Despite this, Know Labs disclosed a negative shareholder equity for the quarter, though it has completed a capital raise and is actively pursuing measures to bolster this.

The company's KnowU, a non-invasive continuous glucose monitoring device, is making headway in clinical trials, moving closer to FDA approval. Know Labs is also focusing on intellectual property monetization and patent licensing, identifying over 600 proprietary elements for platform technology. In an effort to strengthen product development, the company expanded its medical and scientific advisory board and made key hires.

These are recent developments, reflecting Know Labs' ongoing efforts to manage its financial challenges while working towards enhancing shareholder value and corporate visibility.

InvestingPro Insights

Know Labs, Inc. (NYSE American: KNW) has recently completed a financing round to support its corporate initiatives, including the development of its non-invasive glucose monitor. While the company is advancing its product pipeline, a glance at the real-time data from InvestingPro reveals some challenges and market performance metrics that investors should consider.

One of the "InvestingPro Tips" indicates that Know Labs is quickly burning through cash, which is a critical factor for investors to monitor, especially as the company is in the midst of developing technology that requires significant investment. Another tip suggests that the company has seen a significant return over the last week, with a 9.0% price total return, reflecting a potential short-term investor confidence boost following the financing news.

From the "InvestingPro Data," we see that Know Labs has an adjusted market capitalization of $30.83 million, which provides a sense of the company's size in the market. However, the company operates with a negative P/E ratio (adjusted) of -2.0, indicating that it is not currently profitable. This is further supported by an EBITDA of -$14.25 million, which shows that Know Labs is facing challenges in generating earnings before interest, taxes, depreciation, and amortization.

Investors looking at the long-term performance will note that the stock has fared poorly over the last month and three months, with price total returns of -27.09% and -55.79%, respectively. These metrics suggest that while there may be optimism in the short term, the longer-term outlook has been less favorable.

For those interested in further insights, InvestingPro provides additional tips on Know Labs, including detailed analysis on the company's financial health and market performance. Visit InvestingPro for more information and tips that can help investors make informed decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.