LOS ANGELES, CA / ACCESSWIRE / June 13, 2019 / Decision Diagnostics Corp. (OTC PINK: DECN) is a 17 year old, diabetes-focused bio-technology R&D firm, manufacturer, quality plan administrator, FDA registered medical device customer support organization, and exclusive worldwide sales and regulatory process agent for the GenUltimate! (“Sunshine”) diabetes test strip, the internationally launched GenSure! (“Feather”) diabetes test strip, and its GenChoice! (“Ladybug”) test strip now under review for FDA 510K clearance. The company also markets the PetSure! test strip for the diabetic testing of dogs and cats, a diagnostic specifically designed to run on the market leading Zoetis Alpha Trak meter system, and the GenUltimate! Test 4Pets test strip and Avantage! meter launched earlier in 2019, and the landmark GenUltimate! TBG (“Dragonfly”) highly precise and outre’ accurate diabetes testing system, launched on June 6, 2019, in select off-shore markets.
Today the company announced the conclusion of two financing events, both with its main investor Alpha Capital Anstalt. The first financing is an extension to the company’s $250,000 Term Note from Alpha. Originally set to come to term on June 12, 2019, this Note has been extended by agreement between the parties until August 12, 2019. The proceeds from this Note were used to complete the advanced development of our GenUltimate! TBG technology and products.
Keith Berman, CEO of DECN commented, “The Alpha financings are typical business transactions with a funding source we know well and trust. Alpha has been our major funding arm for the last four years. The need for new funding this time around relates to the various transactions the Board is contemplating for our GenUltimate! TBG product.”
The second financing event, also with Alpha, includes an additional investment of $250,000, funded in two installments of $125,000, the first installment to be funded on June 17, 2019, the second installment, also for $125,000, will be funded 30 days later. Documentation has been executed, moving the transactions into usual and customary closing activities. Additional Notes from closely aligned investors (so called Junior partners) in our Alpha deals are expected.
Mr. Berman continued, “This Alpha investment, and the call that went out to closely aligned Junior partners that invest in some Alpha transactions, gives the company major comfort as we prepare to choose and then negotiate with two parties that have provided propositions for our GenUltimate! TBG. Having a financial arm standing behind us lessens the chance that on the one hand our chosen targets can put us in a vice, and on the other hand, we now know we can better hold out for the best deal possible. We are not attempting to raise a large amount of capital because it is our sincere belief that we will come to some sort of arrangement where our cash flows as a result of royalties or license fees will carry us through the introduction of our next three new products.”
The new financing calls for two one-year Notes inclusive of an OID, paying 9% annual interest. The Notes can be converted into common stock shares at a conversion rate of $0.0195 per share, the share price in March 2019 when these Notes were first agreed to. As part of the company’s agreement with Alpha, remaining Notes will also carry the same conversion price. In return for this accommodation, the company will return to Alpha for additional fundings as the GenUltimate! TBG product either becomes market ready or for Alpha to provide additional foundation for the expected and discussed upcoming transaction(s) should our talks become complicated.
Mr. Berman concluded, “We now plan to have our litigation discussion next week. Although we wanted to discuss this crucial litigation this week, we did not believe we could give this discussion service by rushing a release out. Our plates are still very full.”
ABOUT DECISION DIAGNOSTICS CORP.
Decision Diagnostics Corp. is the leading manufacturer and worldwide distributor of diabetic test strips engineered to operate on legacy glucose meters. DECN’s products are designed to operate efficiently and less expensively on certain glucose meters already in use by almost 7.5 million diabetics worldwide. With new inspired technology diabetic test strips already in the final stages of development, DECN products compete on a worldwide scale with legacy manufacturers currently selling to 71+ percent of a $12 billion at-home testing market.
This release contains the company’s forward-looking statements which are based on management’s current expectations and assumptions as of June 12, 2019, regarding the company’s business and performance, its prospects, current factors, the economy, and other future conditions and forecasts of future events, circumstances, and results.
SOURCE: Decision Diagnostics Corp.
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