In a frank conference call with investors earlier this week, Dean Janes, CEO of tech startup Imaging3, described how the company continues to be battered by hard times, warning that a serious influx of cash is needed before it can even present its technology for FDA approval.
“We had to issue a large amount of warrants and shares to two of our investors to avoid overwhelming litigation,” Janes said in a conference call held May 21. “We find ourselves in the difficult situation of having a substantial number of outstanding shares.”
Although Janes likened the upheaval to passing a kidney stone, he stopped short of saying Imaging3 would be closing its doors due to the setbacks.
“It doesn’t affect what we’re able to do and the value that I believe this company holds with its shareholders,” Janes said in the call. “We’re currently raising money and hope to be back on track to file with the FDA our resubmission by the end of summer.”
In a May 4 interview with MoneyTv.com, Janes described the circumstances as “a real gut-check moment.”
“It looks on the face of it that this is overwhelmingly bad for the company,” he said. “It just means there’s more shares out there. It’s just a huge inconvenience for us and it makes it a lot more difficult for us to raise money and to move forward.”
As the share price of Imaging3 has eroded, so has its ability to fund-raise, which Janes said has kept it from retaining lobbying consultants to broker its FDA approval. Yet the CEO was adamant in his conference call that the $0.02 per share stock price did not change his company’s fundamentals.
“I’ve been doing this for a while, and I can raise these funds; it’s just going to take some time,” he said.
The chief technology upon which Imaging3 is based is the Dominion Volumetric Imaging Scanner, which the company says “is the only product in existence that can produce a combination of high quality 2D, 3D real-time, and CT imagery in a single device.”