Guardion Health Sciences completed a private placement of its common stock on November 3, 2017, raising an aggregate of $5,000,001.05 through the sale of 4,347,827 shares of common stock.
Guardion intends to use the proceeds from the sale of the shares for general working capital purposes, including product development and commercialization, development of intellectual property, purchases of inventory, sales and marketing, and other operating expenses.
The company anticipates that a portion of the proceeds will be used to accelerate the expansion of the operations of the company’s recently acquired, wholly-owned subsidiary, VectorVision, and to fund the development of additional products in Guardion’s pipeline.
The company sold the common shares to Lianluo Smart Limited, a company listed on the Nasdaq (trading symbol: LLIT) and based in Beijing, China, and its affiliated company, Digital Grid (Hong Kong) Technology Co., Limited. Pursuant to the Stock Purchase Agreement, LLIT purchased 1,304,348 shares of common stock of Guardion at a price of $1.15 per share for a total investment of $1,500,000.20 and Digital Grid purchased 3,043,479 shares of common stock of Guardion at a price of $1.15 per share for a total investment of $3,500,000.85. Hangzhou Lianluo Interactive Information Technology Co., Ltd., a company listed on the Shenzhen Stock Exchange (trading symbol: 002280), owns 64.18% of LLIT and 100% of Digital Grid.
“We are pleased to announce this significant and timely investment in Guardion by Digital Grid and Lianluo Smart Limited. We are truly delighted to be associated with such organizations,” Guardion CEO and founder, Michael Favish, said in a company news release. “We will be focusing our efforts on utilizing our proprietary ocular healthcare technologies and products to expand our operations in key global markets. We will also be exploring the acquisition of other products and technologies that fit within the scope of our business plans.”