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TearLab Announces Acquisition By Accelmed and Related $25 Million Investment

TearLab Corporation, a leader in Ocular Surface Diagnostics, today announced it has entered into a definitive agreement pursuant to which Accelmed Partners II (AP-II) will acquire TearLab. In connection with the acquisition, AP-II has agreed to an investment of $25 million over two tranches that will occur in conjunction with the company delisting from the “over the counter” OTCQB market and TearLab and its senior secured lender, CR Group, has agreed to restructure the terms of the company’s outstanding senior secured indebtedness. Post-transaction, TearLab will be a private company and AP-II will be the controlling shareholder.

TearLab notes the proceeds from the AP-II investment will be used to pay down a portion of TearLab’s existing debt, and fund both organic and inorganic growth opportunities.

“We are very excited to begin a new era for the company with the support from Accelmed Partners and our lender CRG,” commented Seph Jensen, TearLab’s Chief Executive Officer. “With the capital provided through this transaction, we are now able to both pursue continued development of our next generation Discovery platform as well as seek out targeted acquisition opportunities. The dry eye market has tremendous innovations at varying stages of development and commercialization for both treatments and diagnostics that aim to deliver meaningful benefits to physicians and patients. We look forward to creating a stronger company that is better positioned to help shape the landscape of dry eye care for the ophthalmic and optometric communities.”

“Our team has been keenly following TearLab as the company has become part of the clinical guidelines associated with evaluating ocular surface disease,” commented Dr. Uri Geiger, Founder and Managing Partner of Accelmed Partners. “We are excited to be working with Seph and the executive team to accelerate the growth of TearLab’s sizable base of systems. The investment is highly representative of the transactions we seek to undertake and is our first deal in our new fund, AP-II.”

As part of the transaction, Dr. Geiger will become Chairman of the Board and Accelmed Partners’ General Partner, Lior Shav, who led the transaction, will join the company’s board of directors. Seph Jensen, TearLab’s CEO, will remain a board member.

TearLab’s Board of Directors have unanimously approved the transactions and recommended its shareholders approve the acquisition. Closing of the transaction is subject to approval by TearLab shareholders, which TearLab expects to obtain by written consent this week, the satisfaction of certain closing conditions, and certain termination rights that could be exercised prior to closing. The transaction is expected to close in the second quarter of 2020 and is not subject to any financing condition.

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