SEATTLE - Know Labs, Inc. (NYSE American: KNW), a company focused on non-invasive medical diagnostic technology, has announced a funding agreement with Lind Global Fund II LP, managed by The Lind Partners, for an investment totaling up to $12 million. The initial closing of $4 million has been executed, providing Know Labs with net proceeds of approximately $3.68 million.
The investment aims to accelerate Know Labs' development in key areas such as hardware, clinical research data collection, algorithm development, and intellectual property expansion. CEO Ron Erickson expressed that the funding would bolster efforts to validate their proprietary radiofrequency dielectric sensor in clinical trials and pursue FDA clearance for a non-invasive wearable continuous glucose monitor.
Lind's Managing Director, Phillip Valliere, conveyed enthusiasm for the investment, citing Know Labs' developmental milestones and robust intellectual property as attractive investment features. Valliere anticipates collaborative growth with Know Labs' management team.
The funding will be provided through convertible secured notes with a face value of up to $14.4 million, sold to Lind at purchase prices totaling up to $12 million. The initial convertible note has a 24-month maturity, with repayment options including cash or Know Labs common stock issuance. Additionally, Lind will receive a warrant to purchase 3 million shares of Know Labs, exercisable at a premium price.
Know Labs plans to file a resale registration statement for the shares underlying the convertible note and warrant within 30 days of the initial closing, aiming for effectiveness within 90 days. Starting 120 days after funding, Know Labs will make monthly repayments of $240,000, with Lind having the right to increase certain repayments to $750,000.
The funding is secured by assets of Know Labs and its subsidiaries and has received approval from the New York Stock Exchange American. The Benchmark Company, LLC served as the exclusive financial advisor to Know Labs for this agreement.
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