Guided Therapeutics Closes $3.3 Million Bridge Financing

Guided Therapeutics, Inc. or the “Company” (OTCQB: GTHP), the maker of a rapid and painless testing platform based on its patented biophotonic technology, announced today that it had raised approximately $3.3 million through the sale of 6.6 million shares of the Company’s common stock at 50 cents each. For each common share purchased, the investors also will receive one warrant to purchase an additional share for 50 cents and one warrant to purchase an additional share for 65 cents. Both warrants have a term of four years. If the shares are registered within six months, the warrants will not have a cashless exercise option and they do not carry any anti-dilution features. Investors include certain members of the Company’s board and other long term investors.

As a part of this transaction, the Company has agreed to exchange certain debt and equity owned by Auctus Funds, LLC, a long term investor in the Company. Under the terms of the agreement, Auctus will exchange $1,060,911 owed to it in debt and 8,775,000 warrants they currently hold that are priced between 15 cents and 20 cents for $1.95 Million worth of units in the new financing, equating to 3.9 Million common shares, 3.9 million warrants priced at 50 cents and 3.9 million warrants priced at 65 cents plus residual debt of approximately $490,000 to be paid to Auctus over an 18 month period in four equal installments.

The primary use of proceeds is to fund the completion and filing of clinical study data needed for FDA approval of the Company’s LuViva Advanced Cervical Scan, which received IRB approval last month for starting the study this quarter. Additional use of proceeds is to support international distribution partners to grow sales throughout the remainder of 2022 and into 2023, as well as for general and administrative costs. Some funds will be used to further reduce debt and allow the Company to continue its efforts to uplist to Nasdaq. To this point, this bridge financing has brought the Company’s stockholders’ equity to nearly break even, assuming current existing exchange agreements are implemented. The Company has informed Nasdaq that it intends to keep its application for uplisting open and to implement the uplist process when market conditions and Company progress make the uplist financing less dilutive. The current S-1/A connected with the uplist will be withdrawn.