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Theranos Completes Shareholder Recapitalization

NEW YORK (360Dx) – Theranos announced on Tuesday the successful completion of a shareholder exchange "designed to recapitalize its most recent investors."

The firm added that participating shareholders released the company from any potential claims.

Theranos said that holders of more than 99 percent of the shares eligible for the transaction elected to participate in the share exchange. Participants received new shares of Theranos' preferred stock in exchange for their existing preferred shares, and company CEO Elizabeth Holmes contributed shares to Theranos and gave up equity "to offset potential dilution to nonparticipating shareholders," the firm said.

"This transaction unifies the support of Theranos' major investors as the company moves toward commercializing its innovative technologies," Theranos said.

The move is the latest by Theranos as it tries to regain its footing. Earlier this month, Theranos settled with hedge fund Partner Fund Management on two lawsuits accusing the company of lying in order to attract investments.

Last month, Theranos settled separate cases with the Centers for Medicare & Medicaid Services and the Arizona attorney general's office.