Guided Therapeutics, Inc. (Pink Sheets: GTHP), the maker of a rapid and painless testing platform based on its patented biophotonic technology, today announced it has successfully closed out variable rate convertible loans with three lenders and reached preliminary agreements with two other lenders to exchange their variable rate convertible notes for cash and fixed rate equity once a significant financing of the Company occurs. In return, the two lenders have agreed to suspend conversions. These latest agreements mark significant progress in the Companys goal to reduce debt and improve its capitalization structure. Additional agreements with creditors have reduced debt from a peak of approximately $11 million early in 2018 to less than $6 million today. The Company has plans to reduce its debt to less than $3 million in the near future.
In addition, the Company executed a 1:800 reverse stock split, effective March 29, 2019. The stock split was approved by the Companys shareholders on October 19, 2018.
Eliminating variable rate convertible notes and the debt that comes with it has been a priority of Guided Therapeutics, said Gene Cartwright, President and CEO. We believe that both of these steps will make the Company more attractive to investors, as well as our previously reported expectation of higher revenues due to increased sales in China, Russian/Eastern Europe and Indonesia, he added. In addition, the reverse split will allow the Company to uplift to the OTC Bulletin Board and help make the Company more financeable.
About Guided Therapeutics Guided Therapeutics, Inc. (Pink Sheets: GTHP) is the maker of a rapid and painless testing platform based on its patented biophotonic technology that utilizes light for the early detection of disease at the cellular level. The Companys first product is the LuViva Advanced Cervical Scan, a non-invasive device used to detect cervical disease instantly and at the point of care. In a multi-center clinical trial with women at risk for cervical disease, the technology was able to detect cervical cancer up to two years earlier than conventional modalities, according to published reports. For more information, visit: www.guidedinc.com.
The Guided Therapeutics LuViva Advanced Cervical Scan is an investigational device and is limited by federal law to investigational use in the U.S. LuViva, the wave logo and Early detection, better outcomes are registered trademarks owned by Guided Therapeutics, Inc.
Forward-Looking Statements Disclaimer: A number of the matters and subject areas discussed in this news release that are not historical or current facts deal with potential future circumstances and developments. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally and also may materially differ from Guided Therapeutics actual future experience involving any of or more of such matters and subject areas. Such risks and uncertainties include those related to the early stage of commercialization of products, the uncertainty of market acceptance of products, the uncertainty of development or effectiveness of distribution channels, the intense competition in the medical device industry, the sufficiency of capital raised in prior financings and the ability to realize their expected benefits, the uncertainty of future capital to develop products or continue as a going concern, the uncertainty of regulatory approval of products, and the dependence on licensed intellectual property, as well as those that are more fully described from time to time under the heading Risk Factors in Guided Therapeutics reports filed with the SEC, including Guided Therapeutics Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and subsequent filings.