Fortress Investment Group Eyes Troubled Investment In Theranos

The chief executive officer of Theranos, Elizabeth Holmes, has issued a warning to the company’s investors that the company is in danger of a loan default as a result of delays to Zika virus assay. Holmes is hoping that investors will choose to rescue the company and avoid have Theranos suffer a cash crunch by the end of July.Holmes gave investors a written account of a $65 million loan the company received from Fortress Investment group a little less than a year ago. Fortress also offered another $10 million to Theranos providing that the company successfully gained a clearance for the marketing of a Zika virus assay in either the United States or Europe. Theranos would need to have gained the clearance in the first half of the current year in order for their business plan to pan out but that does not look likely at this time.A major concern for Holmes is that she expects the cash reserves for Theranos to be less than $3 million in July which is problematic due to a clause in the company’s loan contract with Fortress to maintain a $3 million liquidity level.

The loan goes into default if Theranos does not maintain this $3 million threshold.In the event of default, Fortress Investment Group could choose to take over Theranos which would negatively affect the amount of return that could be distributed to shareholders. One projected scenario would be for Fortress to oversee a sale of Theranos. This would put investors in a quandary as they would be left to divide what is left of the sale to recoup some of their $700 million in investments.Faced with the very real possibility of a bad investment becoming considerably worse, Holmes is optimistic that investors will see the wisdom of providing Theranos with the needed funds to avert a cash crunch. Holmes knows that what she is asking of investors is not easy for them to stomach but says they now have a chance to secure a major stake in the company at a buyer’s price. Holmes has responded to the pending cash crunch by attempting to cut expenses and has had to lay off non-essential staff. Only personnel involved with the legal, administrative, and financial teams, along with the central pieces of the technology staff are guaranteed to keep their jobs.

About Fortress Investment Group

Fortress Investment Group is a management firm specializing in global investments. The company provides clients with a wide-range of expertise in investment strategies including credit, equity from private sources, liquid markets, private equity, and asset management services.Learn More.

Todd Lubar, Turning His Passion For Realty Into A Reality

Todd Lubar is a prominent figure in the world of real estate and has had an immense contribution to the field. According to Yelp, Todd started working in the field of real estate in 1995 and since then has made quite a name for himself. He has always been an ambitious person who wanted to own his own business. He also knew that he wanted to help people while doing something that he loved. Realizing this was when it dawned on Todd Lubar that he wanted to be in the field of real estate.

According to crunchbase, Todd also has a tremendous amount of financial expertise which he uses to guide his clients on their property investment ventures. This keen eye for financial advisory comes from one of Todd Lubar’s first jobs where he advised people in financial investments while working with Legacy Financial Group. It was here where Todd learned to work with investors and financial advisors who helped clients purchase their dream homes while making a sound investment into it. He also had a considerable amount of experience working with customers during his time working at Legacy Financial Group. This helped him develop his people’s skills, which is also what has made his founding company what it is today.

Fast forward to present day and Todd Lubar is at the peak of his career, leading his company which he runs under the name of Legendary Properties. Todd Lubar established this company in 202, and since then, has transformed it into the industry leader that it is today. Through hard work and dedication, Todd Lubar has brought his company up from scratch, to what it has now become. The company mainly geared towards helping people with their rehabilitation needs and giving clients the homes that they have always dreamed of owning. The company offers real estate solutions to a wide array of customers, right from companies looking out for office spaces, to families looking out for a bigger home. Todd Lubar believes in offering his customers the best quality customer services and upholds this value with the company that he runs, which has, in turn, helped the company grow to its fullest potential.