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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."
How many times must it be said, this is a scam.
To misquote Marie Antoinette:
"Let them eat scam!"
Smoking certainly isn't healthy for you . . . but lots of folks do it anyway . . . because they like it. Casino gambling doesn't offer you good odds, but folks get addicted to that, as well.
Folks buy into scams . . . for kinda sorta the same reason. They like the thrill of maybe buying into the next Facebook . . . even if all sane evidence says that it is a scam.
So just let these folks toss their money away . . . as long as they don't harm anyone other than themselves.
Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
I think it has less to do with her gender and more the fact the fraud she committed whilst frittering away hundreds of millions of dollars. And somehow she's still CEO, because "vagina".
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
The fact that the CEO was female was part of their hype. They did this.
The fact that they failed was because they had a fundamentally flawed product that they were never able to fix and they engaged in widespread fraud and deception to avoid facing up to their problems. This has no relation to the sex of their CEO. It's common in industry.
I don't read your sig. Why are you reading mine?