WORCESTER, Mass., Dec. 11, 2012 /PRNewswire/ -- Grove Instruments Inc., a medical device company based in Worcester, MA, developing the world's first noninvasive glucometer today announced that The Company's first tranche of Series B-1 Preferred Stock was oversubscribed and has closed. The first tranche was set at $3 M in new funds. "This closing enables the company to covert long-term debt notes into equity and greatly strengthens our balance sheet," explained Arthur Combs, Grove's CEO. "Investor interest remains very strong as Grove closes in on the 2012 strategic goals we presented to our shareholders at our June Annual Meeting," continued Combs.
In 2012 Grove commissioned a strategic market research study performed by Health Advances (Weston, MA, San Francisco, CA and Zurich). The results of that study strongly suggest a resurgence of interest in noninvasive glucose measurement technology, affirm the continued unmet need and market pull among customers, and point to a clear market entry point for Grove's value proposition. "The study both validated and edified our internal strategic planning for 2012. The results essentially endorsed our 2012 strategic plan, goals and objectives, and critical milestones," said Combs. "The essential congruence of what we are doing at Grove with what the market clearly states are its own needs renews and redoubles our commitment to deliver our noninvasive technology to a demanding market," stated Combs enthusiastically.
"The clear alignment between industry and market requirements with Grove's own strategy has been a very strong fundraising tool," said Combs. "The results of the Health Advances study validate the investment thesis for many of our current shareholders and several new investors which allowed us to close the first $ 3 M tranche in such a short time," he continued.
After closing the first tranche, Grove intends to complete the Series B-1 round with an additional $2 M raise early next year. "Market validation of company strategy is a powerful incentive for investors and employees alike," Combs said, "and the need for a self-monitoring solution that diabetic patients will embrace has never been greater."
More than 25 million Americans have diabetes, a number that is increasing by one million per year. In Massachusetts, more than 400,000 adults have been diagnosed with diabetes, and these numbers are increasing at epidemic rates (61% in the last 12 years). The cost of diabetes in the Commonwealth is $4.3 billion annually.
About Grove Instruments
Grove Instruments, Inc. is a privately held pre-market medical device company developing the world's first noninvasive glucometer that has exceeded the ISO 15197 standard for blood glucose meters. Grove's patented technology is based on the seminal concept of the Optical Bridge and is unique among all NIR spectroscopic approaches to noninvasive blood glucose determination. The Company has been recognized for its innovation, technology development and clinical results on 10 separate occasions by the NIH NIDDK with funded SBIR Grants. In 2011, Grove was also recognized by the Massachusetts Life Sciences Center with an Accelerator Award one of only 4 recipients out of all Boston-area life sciences companies applying in that round. In 2012, Grove received its 9th issued US patent and filed 4 new applications. For more information see www.groveinstruments.com or contact Arthur Combs (314 341 3444 mobile).
Forward looking statement
Certain statements contained in this plan containing words like "believe", "intend", "may", "expect", "project" and other similar expressions are forward looking statements involving a number of risks and uncertainties. Factors that can cause actual results to differ materially from those projected in the company's forward-looking statements include the following: market acceptance of our technologies, therapies, and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to keep up with rapidly changing technological; government regulations of our technologies; our ability to assert and enforce our intellectual property rights and protect our proprietary technologies; the ability to attract and retain key employees; the ability to obtain and develop partnership opportunities; the timing of commercial product launches; the ability to achieve key milestones in key products and other risks factors from time to time in the company's filings.
Contact: Arthur Combs, CEO
Cell: 314 341 3444, email@example.com
SOURCE Grove Instruments Inc.