Raising new capital: The facts

Guy D. Reynolds

Recently we told you that the Board of Directors has unanimously approved the appointment of Guy D Reynolds to take over as President and CEO of L.O.M.

We also pointed out that this was conditional on a successful capital raise due to close in April.

At this point we wanted to inform you how this is going ahead. #SEOsecrets

Where do we stand?

As you know, our safety-engineered syringe(click), reduces risk of needlestick injury (click), unsafe injection and getting a virus (click), thereby stopping  disease transmission.

In the process of getting things to the market, we wanted to put the financing in place.

Following several shareholder enquiries about the proposed financing deal to secure the future of LOM I wanted to provide a brief update.

Let me state here:

We have agreed and are close to closing a deal that will raise USD 6.5m by issuing new shares. This means 2,166,667 new shares at a price of USD 3.00

We are aiming to close this deal in May and are in the process of finalising the legalities and documentation.

We are ready for market clearance - a few more challenges we are handling - all is well - | Fotolia id488597882

We are ready for market clearance – a few more challenges we are handling – all is well – | Fotolia id488597882

Why is this important?

This deal allows LOM to repay any existing loans and creditors that are due. As importantly, it provides sufficient working capital to allow us to launch our world class syringe.

I would like to thank you all for your tremendous support.

I will of course continue to come to shareholders if there are any issues for your consideration. The fact that we received

  • over 75 per cent of LOM shareholders endorsing our latest resolution

shows how supportive and united the company is.

It is great that we are united behind the board which allows us to finally achieve our potential.

This is a great time for the business and I look forward to updating you further and meeting you all as soon as possible.

If you have any questions at all please do get in touch through your existing channels.

Join the discussion: Your opinion matters

What interests us is of course your opinion.

If you have any comments or questions please let us know below (#CEOsecrets).

Of course we will reply

Showing 14 comments
  • Pietro Muller
    Reply

    Thanks for this information Mr. Reynolds
    I hope to see your syringes on the market quick. We need them.
    Please keep us informed
    Pietro Muller

    • Guy D. Reynolds
      Guy D. Reynolds
      Reply

      Dear Mr Muller
      Thanks so much for taking the time to stop by and comment on my blog entry.

      Yes we are striving to get our smart syringe to market as fast as we can. We are making progress and getting ready to submit to the FDA for obtaining clearance.
      Thereafter we have plenty of work to do regarding roll out of this product.

      I will try to keep you posted about our progress on our website. Hence, if you have not done so already, please subscribe to our newsletter to get the latest updates via e-mail.

      Thanks
      Guy

  • Melody Parenteau
    Reply

    Upon completion of raising the final capital required, what will be the total number of outstanding shares?

    • Guy D. Reynolds
      Guy D. Reynolds
      Reply

      Dear Ms Parenteau
      Thanks for this important question.

      The answer is: Approximately 17m shares on a fully diluted basis.

      As people will understand, in order to make sure the company has enough working capital, we have had to issue new shares to a new investor.

      Having approached many shareholders, the overwhelming sentiment was that existing shareholders would not put up the required additional capital and further that they wanted to keep their shares in LOM.

      I look forward to discussing this all in great detail at the next AGM – details of which will be sent in due course.

      Guy Reynolds

      • Brian Bergen
        Reply

        Dear Sir or Madam

        Do you have a estimated date for the next AGM?
        That would be nice to know.

        • Debbie Ulansky
          Debbie Ulansky
          Reply

          Dear Mr. Bergen,
          Thank you for your inquiry. Last years AGM was held on July 4th 2017.
          A date has not yet been determined for 2018.
          Once the date has been set and the details of location and time are arranged, an announcement will be made through mail, email and posted on the website.

          Best Regards,
          Debbie Ulansky

  • Craig LaPointe
    Reply

    Glad to have you onboard Guy to get us through the final stages in getting our products through to public sales. It has been a long time coming and I am fully confident we will all see our investment in LOM come to full attrition.
    All the best in your new roll with LOM.> Looking forward to meeting you.
    Best regards,
    Craig LaPointe

  • Lois J Huston
    Reply

    I was informed that a ‘’ company’’ was investing 6.5 million dollars in LOMMEDICAL.,hence the recent form sent out to shareholders for signature.And now it appears to me, that the actual money will be raised through diluting shares,I don’t want to appear,contrary,but what is the real truth??? Ps Why the quiz????

    • Guy D. Reynolds
      Guy D. Reynolds
      Reply

      Dear Lois
      Thanks for raising this issue with us. You write:

      “…the actual money will be raised through diluting shares,I don’t want to appear,contrary,but what is the real truth??? Ps Why the quiz????”

      You are right to point out that by issuing additonal shares of stock, earnings per share or the book value per share declines. But without additional capital we would not be able to pay off our loans, other commitments and get FDA clearance.

      Hence, without giving this investor some shares, things would be awkward.

      I hope this clears up some things.
      Thanks for the understanding.

      Greetings
      Guy D. Reynolds

  • Guy D. Reynolds
    Guy D. Reynolds
    Reply

    Dear Craig

    Thanks so much for your positive feedback.
    Yes I will get this project moved forward. But we have come a long way since 2014.
    Our next aim is to get the FDA clearance once we have finally secured this financing.
    Best regards,
    Guy

  • Wade Wohlford
    Reply

    Hello Mr. Reynolds,

    Thank you for your posts, I also have been a long time Share holder lets say 21 years worth.
    I I am very pleased you are responding to share holders in a public forum such as this blog, and the honesty in regards to share dilution.
    the highest share sale I had heard of in the past was $3.25 USD. this current sale of $3.00 USD does not upset me, as several years ago I was convinced the company was gone and so was the investment and now I see my Investment is still here. Very Important to me is that the company continue with the honest answers to questions. total transparency.
    I know you all will be challenged with that considering the current legal situation(s).
    it has been mired in legal conflict for many years and is the real reason why no progress was made for so long.
    as a long time share holder seeing the positive direction made by the current Board of Directors and now that includes yourself. there is a high mountain to climb to get 100% share holder support, but from recent posts here having 75% and higher tells that the Share holders are behind this Company and we all want it to succeed and to me that means it has to defend itself from false accusations and claims.
    I as a share holder Support you and the Board of Directors and this company so that you all can deliver high returns for us. Much Higher than what we were first told as I am sure all shareholders feel there is Compound interest we should see built into the value for so many years.

    Thank you for taking the risk to come help us!

    • Guy D. Reynolds
      Guy D. Reynolds
      Reply

      Dear Mr. Wohlford

      Thank you for your very supportive message. I am doing everything possible to make this company realise its true potential.

      I agree – previous history and false legal claims have injured the business for many years. I am hopeful these days are over and if we rally around trying to do something positive for the world and for the business we will succeed.

      I look forward to meeting you soon and thank you.

      Cordially
      Guy D. Reynolds

  • Brian Bergen
    Reply

    It’s been almost a month since the last news/announcement. What has been happening since then?

    • Debbie Ulansky
      Debbie Ulansky
      Reply

      Hi Brian,
      Thank you for your question. Things are progressing on all fronts. There has not been an update recently as we are waiting for a couple of significant things to complete and it has taken a few weeks longer then expected. We will be updating shareholders soon.

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