LifePoint, Inc. Completes $9.2 Million Private Placement
ONTARIO, Calif., March 21 /PRNewswire/ -- LifePoint, Inc. (OTC Bulletin Board: LFPT - news), a developer of rapid,
non-invasive testing products using saliva, announced further details with respect to the closing of the long-term private
placement offering pursuant to Regulation D of the Securities Act of 1933. The offering was closed with 1,840 units, each unit
consisting of 2,500 shares of LifePoint Common Stock and 2,500 $3 warrants to purchase LifePoint Common Stock, at $5,000 per unit. The warrants may not be
exercised prior to September 14, 2000 and the shares included in the units are restricted securities for at least one year.
(Photo: newscom.com )
Linda H. Masterson, President and CEO said, ``We are excited about completing this funding because it allows us to finish the product development, build a manufacturing
facility, generate field trials and pilot studies, and initiate marketing. Because our business plan indicates that we will only require an additional $4.5 million in funding to
reach the market, this financing of gross proceeds of $9.2 million also provides working capital for several quarters post initiation of revenue. Additionally, if our current
discussions with potential strategic partners continue as they currently are, we believe that this financing combined with up-front fees from potential partners means that
LifePoint will not need to raise any additional capital to reach profitability.
``We are very pleased with the wide acceptance of this offering. We have also continued to attract long-term investors as evidenced by their not demanding immediate
registration rights for the shares sold to them in the offering. Institutional investors continue to take a significant position in LifePoint and now represent, on a fully diluted
basis, 31% ownership of LifePoint. Our largest institutional stockholder, The General Conference Corporation of Seventh-day Adventists, participated in this offering as
they have in every offering since the original IPO. We are grateful for the continued confidence many of our current shareholders have shown in management's ability to
implement our plans and our accomplishments over the last year by adding to their current stock position. Lastly, and most importantly, our business plan had assumed that
we would complete this offering at $1 per share; instead we were able to issue fewer shares and almost double the amount of financing,' concluded Ms. Masterson.
LifePoint, Inc. is a late development stage company designing a unique product that will provide immediate, on-site diagnostic results without the need to take blood or
urine. LifePoint is focused on the commercialization of the flow immunosensor technology licensed from the Naval Research Laboratories. This patented technology, when
used in conjunction with saliva as a non-invasive test specimen using the Company's proprietary collection technology, will allow LifePoint to develop a broadly applicable
non-invasive, rapid, on-site diagnostic test system. The LifePoint(TM) product could be used for rapid diagnostic testing, for screening, and therapeutic drug monitoring in
non-medical environments such as the workplace, home health care, ambulances, pharmacies, and law enforcement. The first product under development is for the
simultaneous detection of drugs of abuse and alcohol. The market potential for this product is estimated to be $750 million and growing to over $1 billion by 2002.
Marketing to the non-medical markets is anticipated to begin no earlier than the fourth quarter of 2000. |
