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RUTHERFORD, NJ – Glucotrack, Inc. (NASDAQ:GCTK), a medical device company with a market capitalization of $3.54 million, disclosed the completion of several transactions involving unregistered sales of equity securities, according to a Form 8-K filed with the Securities and Exchange Commission on Thursday. According to InvestingPro analysis, the company currently shows weak financial health with a concerning current ratio of 0.14, indicating potential liquidity challenges.
The company, specializing in surgical and medical instruments, announced the conversion of approximately $4.09 million of debt into equity. This conversion resulted from a private placement that closed simultaneously with a public offering previously commenced on November 12, 2024. The debt, originally issued to an investor on July 30, 2024, was converted into 132,036 shares of Glucotrack’s common stock, along with accompanying Series A and Series B warrants to purchase additional shares. InvestingPro data reveals the company is rapidly burning through cash, with negative EBITDA of $13.1 million in the last twelve months.
Additionally, Glucotrack converted three outstanding convertible promissory notes totaling $304,494 into equity on similar terms as the public offering. These notes, referred to as the July 18 Notes, were automatically converted upon a Qualified Financing event, yielding an aggregate of 9,760 shares of common stock and corresponding warrants for the note holders.
On Monday, the company also processed an exchange of all Series B Warrants held by the note investor and holders, amounting to 2,835,905 warrants. This exchange, which required no additional consideration, resulted in the issuance of 2,749,817 shares of common stock. The Series B Warrants featured a cashless exercise option, allowing holders to acquire up to 300% of the shares purchasable via cash exercise under the warrants.
The issuance of common stock in these transactions was executed under Section 3(a)(9) of the Securities Act of 1933, which exempts exchanges of securities from registration when certain conditions are met, including the absence of additional consideration and the non-payment of commissions.
These moves come as part of Glucotrack’s ongoing efforts to manage its capital structure and provide liquidity options to its investors. The company’s CEO, Paul Goode, signed off on the SEC filing, which marks the latest financial maneuver by Glucotrack in its operations within the medical device industry. InvestingPro subscribers have access to 12 additional investment tips for GCTK, including detailed analysis of the company’s valuation metrics and growth prospects. Unlock comprehensive insights about Glucotrack’s financial position and market performance with an InvestingPro subscription.
In other recent news, Glucotrack, Inc. has announced a public offering of approximately 2.6 million shares priced at $1.15 each, aiming to raise around $3 million before fees and expenses. This offering, facilitated by Dawson James Securities, Inc., is expected to close soon, pending customary conditions. Additionally, Glucotrack has reported success in its first human clinical trial for a new continuous glucose monitoring system, which met its primary safety endpoint without serious adverse events. In another development, the company has implemented a 1-for-20 reverse stock split to meet Nasdaq’s minimum bid price requirement, reducing the total number of outstanding shares significantly.
Furthermore, Glucotrack has appointed Ted Williams as Vice President of Regulatory Affairs, bringing extensive experience to aid in the regulatory process for their continuous blood glucose monitoring system. The company also issued new shares following the exchange of Series B Warrants, resulting in the issuance of 134.78 million shares of common stock, providing additional resources without immediate cash outlay from investors. These recent developments underscore Glucotrack’s ongoing efforts to advance its medical technologies and strengthen its financial position.
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