Balance Labs Enters Into $25 Million Investment Agreement with Newel Trading Group
08 April 2016 - 11:45PM
Access Wire
MIAMI BEACH, FL / ACCESSWIRE / April 8, 2016 / Balance
Labs, Inc. (OTC: BLNC), a consulting firm specializing in
the delivery of incubator, accelerator and business development
services for start-up and development stage companies, today
announced the execution of an Investment Agreement ("Agreement")
with Newel Trading Group LLC, an investment vehicle of a New
York-based investment management group with over $1 billion under
management.
The Agreement will provide Balance Labs with up to $25,000,000
in equity financing as well as a $500,000 loan in the form of a
convertible debenture. In consideration for the execution and
delivery of the Investment Agreement, Balance Labs issued 1 million
non-registrable shares of the Company's Common Stock and 2 million
warrants exercisable at $3.50 per share to Newel.
"Balance Labs is extremely excited to announce this investment
agreement with Newel. Having ready access to this level of capital
and equity financing will allow management to implement our
strategic growth initiatives including the incubation and
development of Balance Labs' internal business concepts as well as
providing the same optimal and comprehensive business development
consulting services to our clients. We believe this financing will
help facilitate the long-term growth of our shareholder value,"
commented Michael D. Farkas, CEO of Balance Labs.
Investment Agreement
On April 1, 2016, the Company entered into an investment
agreement with Newel Trading Group LLC ("Newel") whereby Newel is
obligated to purchase up to $25,000,000 of the Company's common
stock on the terms set forth in the Investment Agreement, providing
the Company has met certain conditions including the filing of a
Form S-1 Registration Statement for the shares to be acquired.
Registration Rights Agreement
In connection with the sale of common stock outlined in the
Investment Agreement, the Company entered into a registration
rights agreement with Newel, pursuant to which the Company agreed
to register shares of common stock underlying the $25 million
investment.
Convertible Promissory Notes
Concurrently with the execution of the Investment Agreement, the
Company entered into a convertible debenture with Newel for a
principal amount of $500,000. Interest under the Debenture is 10%
per annum and the principal and all accrued but unpaid interest is
due on April 1, 2017.
About Balance Labs
Balance Labs is a consulting firm specializing in the delivery
of incubator and accelerator services for start-up and development
stage companies. The Company's goal is provide a wide range of
services and facilitates connections with leading service
providers, empowering entrepreneurs to achieve their long-term
business goals. Balance Labs will receive fees in royalties, equity
and cash for the services it provides. For more information, please
visit www.BalanceLabs.co.
This information does not constitute an offer to sell or a
solicitation of an offer to buy securities or assets of Balance
Labs.
All information presented herein with respect to the existing
business and the historical operating results of Balance Labs and
estimates and projections as to future operations are based on
materials prepared by the management of Balance Labs and involve
significant elements of subjective judgment and analysis which may
or may not be correct. While the information provided herein is
believed to be accurate and reliable, Balance Labs makes no
representations or warranties, expressed or implied, as to the
accuracy or completeness of such information. In furnishing this
information, Balance Labs reserves the right to amend or replace
some or all of the information herein at any time and undertakes no
obligation to provide the recipient with access to any additional
information. Nothing contained herein is or should be relied upon
as a promise or representation as to the future.
Forward-looking Statements:
Certain matters discussed in this announcement contain statements,
estimates and projections that involve risks to and uncertainties
in Balance Labs' business that may cause actual results to differ
materially from those anticipated by the statements made herein.
Such statements, estimates and projections constitute
forward-looking statements within the meaning of the federal
securities laws. Balance Labs undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. The
recipient of this information is cautioned not to place undue
reliance on forward-looking statements. No representations or
warranties are made as to the accuracy of such forward-looking
statements or whether any of the projections included herein will
be realized.
Contact:
Balance Labs, Inc.
305-907-7600
info@BalanceLabs.co
SOURCE: Balance Labs, Inc.
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