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Days Before Christmas, Theranos Secures $100 Million in New Funding (fortune.com)
An anonymous reader quotes Fortune:
Call it a Christmas miracle -- albeit of a rather perverse sort. Theranos, the digraced medical-technology startup that infamously inflated the capabilities of its devices, has secured $100 million in new funding in the form of a loan. The loan, reported by the Wall Street Journal, will come from Fortress Investment Group. Fortress, whose other underdog bets include a private passenger rail line under construction in Florida, is set to be acquired by Japan's SoftBank. Theranos was reportedly on the verge of bankrutpcy...
By the end of 2016, the company reportedly still had $200 million in cash on hand, but had sharply limited prospects for attracting more capital. It has since settled a major lawsuit with Walgreens, a former client, for an undisclosed but likely substantial sum. According to the Journal, the Fortress loan is expected to keep Theranos solvent through 2018. That will give the company more time for its ongoing effort to reboot as a medical device manufacturer, rather than a testing service.
The loan is conditional on "achieving certain product and operational milestones," notes Fortune, adding "It's unclear whether those might include positive outcomes for the multiple investigations and lawsuits still facing the company."
By the end of 2016, the company reportedly still had $200 million in cash on hand, but had sharply limited prospects for attracting more capital. It has since settled a major lawsuit with Walgreens, a former client, for an undisclosed but likely substantial sum. According to the Journal, the Fortress loan is expected to keep Theranos solvent through 2018. That will give the company more time for its ongoing effort to reboot as a medical device manufacturer, rather than a testing service.
The loan is conditional on "achieving certain product and operational milestones," notes Fortune, adding "It's unclear whether those might include positive outcomes for the multiple investigations and lawsuits still facing the company."
No, that's not what I said. It is about committing FRAUD, not just being inept. And yes, the two ARE different.Here's 10 CEOs who also committed fraud and all are in jail. Another CEO of a startup committed fraud and is going to jail. And here's another startup CEO going to jail because of fraud. Curiously, all those CEOs who committed fraud are going to jail. Why not Holmes? I'll tell you why: vagina. She is STILL the CEO because she is a woman, and kicking her out would be seen as sexist.
Why else would a CEO of a company, who committed fraud, NOT go to jail or be charged? Can you tell me?
Browsing at +1 - no ACs, I ignore their posts. So refreshing!