Glucotrack, Inc. Announces Pricing of $3.0 Million Public Offering

Rhea-AI Summary

Glucotrack (Nasdaq: GCTK), a medical technology company focused on diabetes technologies, has announced the pricing of a 'best efforts' public offering of approximately 2.6 million shares of common stock at $1.15 per share. The offering is expected to generate gross proceeds of approximately $3.0 million before deducting placement fees and expenses.

The closing is anticipated to occur around February 5, 2025, subject to customary closing conditions. Dawson James Securities is serving as the sole placement agent for this offering, which is being conducted pursuant to an effective S-3 registration statement previously declared effective by the SEC on October 3, 2024.

Positive

• Secured $3.0 million in additional funding through public offering

Negative

• Potential dilution of existing shareholders with 2.6 million new shares
• Best efforts offering structure indicates less certainty of completion compared to firm commitment offerings

Insights

Financial Analyst

The announced $3.0 million 'best efforts' public offering by Glucotrack reveals significant challenges and opportunities in the company's capital raising strategy. The offering price of $1.15 per share stands in stark contrast to the current market price, highlighting potential execution risks. The 'best efforts' structure, where Dawson James Securities isn't guaranteeing the full placement, suggests institutional confidence and could result in partial funding.

The dilution impact is substantial, with approximately 2.6 million new shares being issued, representing a significant increase to the current float. This capital raise appears important for the company's operations, particularly in their diabetes technology development efforts, though specific use of proceeds details are notably absent from the announcement.

A critical aspect worth noting is the timing of this offering, coming shortly after the S-3 registration became effective in October 2024. This swift move to raise capital could indicate urgent funding needs. The choice of a registered offering via Form S-3, while providing regulatory clarity, also signals the company's strategy to maintain market access for future capital needs.

For existing shareholders, this offering presents significant dilution concerns, potentially affecting both ownership percentage and market value. However, if successfully executed, this financing could provide essential working capital for Glucotrack's development pipeline, though the company's ability to fully place the offering at the stated price remains uncertain given current market conditions.

Rutherford, NJ., Feb. 04, 2025 (GLOBE NEWSWIRE) -- Glucotrack, Inc. (Nasdaq: GCTK), a medical technology company focused on the design, development, and commercialization of novel technologies for people with diabetes, announced the pricing of a “best efforts” public offering of approximately 2.6 million shares of common stock. The offering price of each share of common stock is $1.15, The gross proceeds of the public offering are expected to be approximately $3.0 million before deducting agent placement fees and offering expenses. The closing of the public offering is expected to occur on or about February 5, 2025, subject to the satisfaction of customary closing conditions.

Dawson James Securities, Inc. is acting as the sole placement agent for the public offering.

This public offering is being made by the Company pursuant to a registration statement on Form S-3 (File No. 333.282297), which was declared effective by the United States Securities and Exchange Commission (“SEC”) on October 3, 2024. The securities may only be offered by means of a prospectus. Copies of the prospectus may be obtained, when available, at the SEC’s website at www.sec.gov or from Dawson James Securities, Inc. Attention: Prospectus Department, 101 North Federal Highway, Suite 600, Boca Raton, FL 33432, investmentbanking@dawsonjames.com or toll free at 866.928.0928.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Glucotrack, Inc.

Glucotrack, Inc. (NASDAQ: GCTK) is focused on the design, development, and commercialization of novel technologies for people with diabetes. The Company is currently developing a long-term implantable continuous blood glucose monitoring system for people living with diabetes.

Glucotrack’s CBGM is a long-term, implantable system that continually measures blood glucose levels with a sensor longevity of 3 years, no on-body wearable component and with minimal calibration. For more information, please visit http://www.glucotrack.com.

Forward-Looking Statements

This press release may contain statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Glucotrack’s strategies or expectations and statements regarding the completion of the offering, the satisfaction of customary closing conditions related to the offering, and the anticipated use of proceeds therefrom. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. These risks and uncertainties include, but are not limited to, market and other conditions, the ability of Glucotrack to raise additional capital to finance its operations (whether through public or private equity offerings, debt financings, strategic collaborations or otherwise); risks relating to the receipt (and timing) of regulatory approvals (including U.S. Food and Drug Administration approval); risks relating to enrollment of patients in, and the conduct of, clinical trials; risks relating to Glucotrack’s future distribution agreements; and risks relating to its ability to hire and retain qualified personnel, including sales and distribution personnel. These risks and uncertainties also include, but are not limited to, those described under the caption “Risk Factors” in Glucotrack’s Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC on March 28, 2024, and in Glucotrack’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Glucotrack or to persons acting on behalf of Glucotrack are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Glucotrack does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

Investor Relations:

investors@glucotrack.com

Media:

GlucotrackPR@icrinc.com

FAQ

What is the price per share for GCTK's February 2025 public offering?

Glucotrack's public offering is priced at $1.15 per share.

How many new shares is GCTK offering in their February 2025 public offering?

Glucotrack is offering approximately 2.6 million shares of common stock.

How much money is GCTK expecting to raise in their February 2025 offering?

Glucotrack expects to raise approximately $3.0 million in gross proceeds before deducting placement fees and offering expenses.

When is GCTK's February 2025 public offering expected to close?

The public offering is expected to close on or about February 5, 2025, subject to customary closing conditions.

Who is the placement agent for GCTK's February 2025 public offering?

Dawson James Securities, Inc. is acting as the sole placement agent for the public offering.