Conversion Labs Closes Initial Round of $15 Million Private Placement with Institutional Investors, Advances Toward Nasdaq Uplisting
NEW YORK, NY, November 4, 2020 — Conversion Labs, Inc. (OTCQB: CVLB) (OTCQB: CVLBD), a direct-to-consumer telemedicine and wellness company, has closed on approximately $14.5 million of a $15 million private placement with institutional investors at a purchase price of $4.75 per share. A second closing of an additional $500,000 is expected within the next seven days.
The net proceeds of the offering are expected to be approximately $13.7 million after deducting placement agent fees and other offering expenses. The company intends to use the net proceeds to expedite certain growth initiatives, including new customer acquisition, the development and launch of new product lines, as well as for general corporate purposes.
BTIG, LLC is acting as exclusive placement agent for the offering. This private placement follows an equity investment announced on September 16 that was led by a select group of sophisticated investors who have been helping to drive the growth of the company.
“This new funding by institutional investors represents a tremendous affirmation of our business strategy and growth prospects,” stated Conversion Labs CEO, Justin Schreiber. “It also helps to satisfy the capital requirements for our Nasdaq listing application. As the leading securities exchange for emerging growth stocks, we expect a Nasdaq listing to increase our corporate visibility and broaden awareness of our success in the financial community.
“The additional capital also enables us to accelerate several growth initiatives within the telehealth space, including the launch of new telemedicine brands and patient acquisition. Such launches include Nava MD™, a new teledermatology line for women that we announced last week.”
One of the lead participants in the private placement, the founder and CIO of Paradigm Opportunities, Corey Deutsch, commented: “The Conversion Labs team has done a tremendous job building the company into a leading player in the direct-to-consumer telemedicine space. We see Conversion Labs as having an extremely promising future ahead, as it continues to capitalize on the shift occurring in the healthcare ecosystem and the rapid adoption of telehealth.”
