Balance Labs Enters Into $25 Million Investment Agreement with Newel Trading Group
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.
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.
Balance Labs, Inc.
SOURCE: Balance Labs, Inc.
Released April 8, 2016