The Seattle-based company executed a $4 million close as part of this investment with Lind Global Fund II. The Lind Partners, a New York-based institutional fund manager, manages Lind Global Fund II.
Funding helps Know Labs work toward bringing its non-invasive continuous glucose monitoring (CGM) technology to market. The company unveiled KnowU, its wearable CGM set for FDA submission, earlier this week. KnowU’s sensor uses spectroscopy to direct electromagnetic energy through a substance or material. Through this, it can capture a unique molecular signature. The technology integrates into wearable, mobile or bench-top form factors.
“This investment will enable Know Labs to accelerate development across our four core work streams including, hardware development, expanded data collection in clinical research, algorithm development, and expansion of our defensible intellectual property moat around our technology,” said Ron Erickson, chair and CEO. “We remain focused on validating the performance of the Know Labs proprietary radiofrequency dielectric sensor in large-scale clinical trials on our path to submitting to the FDA for clearance, the world’s first non-invasive wearable continuous glucose monitor.”
The funding comes in the form of convertible secured notes with an aggregate face value of up to $14.4 million. Know Labs plans to sell them to Lind for purchase prices equal to up to $12 million. The company expects to net proceeds of approximately $3.68 million after fees.
In connection with the issuance of the note, the company can issue a warrant to Lind to purchase 3 million shares. That warrant remains exercisable for 60 months following the date six months following the initial funding date. The company priced the warrant at 80¢ per share.
