SEATTLE - Know Labs, Inc. (NYSE American: KNW), a company engaged in developing non-invasive medical diagnostic technology with a current market capitalization of $24.1 million, has announced a registered direct offering priced at-the-market under NYSE American rules, with gross proceeds expected to be $300,000 before deductions. According to InvestingPro analysis, the company's financial health score is currently rated as WEAK, with data showing significant cash burn rates. This offering consists of a share of stock and a corresponding warrant, each priced at $0.24. The warrants, which come with a cashless exercise option under certain conditions, will expire five years from the date of issuance.
The offering is being conducted in accordance with the company's effective shelf registration statement, previously filed with and declared effective by the U.S. Securities and Exchange Commission (SEC) on January 11, 2024. A prospectus supplement detailing the offering was filed with the SEC on December 13, 2024.
Know Labs has specified that the sale of these securities will only take place through the prospectus supplement, which is part of the registration statement. The final prospectus supplement, along with the accompanying base prospectus, will be accessible on the SEC's website.
The company's technology, which is based on spectroscopy, aims to capture unique molecular signatures by directing electromagnetic energy through substances. Know Labs anticipates its first market application to be a non-invasive glucose monitor, pending U.S. Food and Drug Administration clearance. With an EBITDA of -$15.14 million in the last twelve months, the company faces significant development costs. InvestingPro subscribers can access 8 additional key insights about Know Labs' financial position and growth prospects through the comprehensive Pro Research Report, available exclusively on the platform.
The details of this offering will be further outlined in Know Labs, Inc.'s Form 8-K filing with the SEC, which is expected to be submitted on or about Monday.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction where such offer, sale, or solicitation would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction. Financial metrics from InvestingPro indicate that Know Labs operates with a current ratio of 0.6, suggesting tight liquidity conditions that may have influenced this financing decision.
This article is based on a press release statement and contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected.
In other recent news, Know Labs, Inc. has seen significant developments. The company reported a Q3 net loss of $4.1 million for fiscal year 2024, an improvement from the previous year, and raised $1.655 million in a financing round, with Boustead Securities, LLC and The Benchmark Company, LLC serving as advisors. Know Labs also announced leadership changes, appointing John Cronin as Interim Chief Technology Officer and Dominic Klyve, Ph.D., as Chief Science Officer.
Furthermore, Know Labs received an extension from NYSE American LLC to regain compliance with the exchange's listing standards by March 27, 2026, following a notice of non-compliance due to reported losses over recent fiscal years. In addition, the company's stockholders approved an increase in authorized shares of common stock from 200 million to 300 million and amended the 2021 Equity Incentive Plan, expanding the number of shares available for issuance to 40 million.
The company also extended the maturity date of its debt from September 30, 2024, to September 30, 2025, and increased the interest rate on these notes from 6% to 8%. These recent developments reflect Know Labs' ongoing efforts to manage its financial challenges while working towards enhancing shareholder value and corporate visibility.
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