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Theranos offers to double investor shares using Elizabeth Holmes’ own stock

Theranos is being driven to desperation and is resorting to all sorts of tactics to stay afloat. As per the latest news which has made its way to us, the company has offered to Double Investor Shares, if they promise not to sure the company. The news comes even as the company finds itself facing a mass of litigations from shareholders, investors, customers, almost everyone associated with the it.

What’s more, at least some of the extra share is coming from none other than the company’s founder Elizabeth Holmes. The company’s board approved the move to shuffle stock, including some of Holmes own to investors, back in February. This is a very sad development for a company that at its peak, was valued in the billions and was a Silicon valley success story.

Following allegations that the tech it was using in its systems wasn’t FDA approved and extensive tests, that led to the closure of a significant portion of Theranos’s labs, the company is on the verge of collapse. Even apart from the fact that its CEO Elizabeth Holmes has been banned from her own labs, the company’s main products are in tatters. All this is of course, not very conducive for investor trust considering that it is their own money investors have been watching sink all this time.

This new deal will include investors who participated in Theranos’ latest funding round in 2015, which saw the company raise $600 million. Investors like BlueCross BlueShield Venture Partners, Continental Properties Co., Esoom (Enterprise of Taiwan), Jupiter Partners, Palmieri Trust, Dixon Doll, Ray Bingham and B.J. Cassin, will all receive twice the shares for each share they purchased in that round.

While most investors have taken the agreement, at least a couple haven’t. Media Mogul Rupert Murdoch has lost all faith in the company and has arrived at a separate arrangement with Theranos under which it is buying all his shares at $1 apiece. Meanwhile, San Francisco-based hedge fund Partner Fund Management LP has also refused to be privy to the agreement.

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Theranos offers to double investor shares using Elizabeth Holmes’ own stock

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