ONTARIO, Calif., July 14, 2003 (PRIMEZONE) -- LifePoint, Inc. (AMEX:LFP), a leader in non-invasive drug and alcohol diagnostic technologies and solutions, today announced the initial closing of an equity private placement of Series D Preferred Stock and warrants. Several large funds, including the lead investor, BayStar Capital, participated in the private placement. Gross proceeds to LifePoint in this first closing were approximately $2 million. The investors in the private placement have also agreed to purchase an additional $6 million of Series D Preferred Stock and warrants at a second closing. Roth Capital Partners served as the placement agent for this offering.
The second closing is subject LifePoint's receipt of stockholder approval. In addition, the holders of LifePoint's secured debt of $3.5 million have agreed to convert their secured debt plus all interest and fees into Series D Preferred Stock and warrants at the second closing. If the second closing does not occur, LifePoint will be obligated to repurchase all of the shares of Series D Preferred Stock and warrants sold in the private placement. The second close is scheduled to occur directly following LifePoint's receipt of stockholder approval, which is expected to occur within 30-60 days.
The initial private placement consisted of the sale of 2,043 units at $1,000 a unit. Each unit consists of one share of Series D Preferred stock, convertible into 3,333 shares of LifePoint Common Stock and a 5-year warrant to purchase 6,666 shares of LifePoint Common Stock exercisable at $0.50 per share. The Series D Preferred Stock pays a 6% dividend for 3 years, payable in stock or cash at LifePoint's option.
"This successful financing is part of our ongoing efforts to fund the Company's growth," stated Linda H. Masterson, CEO & President of LifePoint. "We believe that obtaining this financing will help us to continue the introduction, manufacturing, marketing and sales of the LifePoint(r) IMPACT(tm) Test System".
LifePoint will hold its fiscal year end conference call on Tuesday, July 15, 2003, in conjunction with its fiscal 2002 fourth quarter and year-end earnings release. You are invited to listen to LifePoint's conference call on Tuesday, July 15, 2003, at 4:30 p.m. EDT, with Linda H. Masterson, President and CEO.
What: LifePoint, Inc.'s Fiscal 2003 Year End Conference
Call
When: Tuesday, July 15, 2003, 4:30 p.m. EDT (1:30 p.m.
PDT)
Web address: www.streetevents.com , www.companyboardroom.com ,
or www.LifePointInc.com
Dial-in numbers: 800.299.0148 (domestic) and 617.801.9711
(international)
Contact: Lester Rosenkrantz, Cameron Associates,
212.245.8800 x212
If you are unable to participate, a web archive will be available for 30 days at www.streetevents.com , www.companyboardroom.com , or www.LifePointInc.com.
About LifePoint, Inc.
LifePoint, Inc., a leader in non-invasive drug diagnostic technologies and solutions, has developed, manufactures and markets the IMPACT Test System -- a rapid diagnostic testing, screening and drug monitoring device for use in law enforcement and the workplace, and in the future, pending FDA approval, ambulances, pharmacies, and home healthcare markets. LifePoint's patented and proprietary technologies for the use of saliva as a non-invasive, blood-comparable test specimen, used in conjunction with the flow immunosensor technology licensed from the United States Navy, have allowed LifePoint to develop a broadly applicable, rapid, on-site diagnostic test system. The first product simultaneously detects drugs of abuse and alcohol. The initial three target markets -- law enforcement, industrial workplace and medical emergency room -- are estimated to be over $1.6 billion in total opportunity.
This press release contains forward-looking statements regarding future events and the future performance of LifePoint, Inc. that involve risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to the ability to obtain additional financing to, among other things, fund any potential repurchase of the Series D Preferred Stock; the actual amount of revenues for the quarter may differ materially from the Company's estimates, FDA 510(k) clearance in medical markets, dependence on third parties for certain marketing efforts, and market acceptance. These risks are described in further detail in the Company's reports filed with the Securities and Exchange Commission.
LifePoint(r) and IMPACT(r) are trademarks of LifePoint, Inc.