Exhibit 99.1
TearLab
Corporation Announces Financing Agreement
SAN DIEGO,
CALIFORNIA--(July 16, 2009) - OccuLogix, Inc. dba TearLab
Corporation (NASDAQ:TEAR)(TSX:TLB) (the “Company) today
announced that it has entered into and closed an agreement with
certain investors whereby the investors agreed to provide financing
(the “Financing”) to the Company through the purchase
of convertible secured notes, in the aggregate amount of $1.55
million. The convertible secured notes (the
“Notes”) evidencing the Financing, mature on the second
anniversary of their issuance (“the Maturity Date”),
bear interest at a rate of 12% per annum and are convertible into
shares of the Company’s common stock upon the request of
holders of 51% or more of the outstanding principal amount of the
Notes at any time after August 31, 2009 and prior to the Maturity
Date. The conversion price of the Notes (the
“Discount Price”) will be 80% of the volume weighted
average price on the NASDAQ stock market for the ten trading days
prior to August 31, 2009, provided that the Discount Price will not
exceed $2.40 per share and will not be less than $0.25 per
share. Any such conversion is limited to prevent the
number of shares issued upon conversion of the Notes from exceeding
19.9% of the outstanding common stock of the Company, measured
prior to the date of the Financing.
In connection
with the Financing, the Company will issue warrants to purchase
shares of common stock equal in value to ten percent of the
aggregate principal amount of the notes (the
“Warrants”). The exercise price of the
Warrants is $1.60 per common share representing the price per share
equal to the closing bid price per share of the Company’s
common stock on the NASDAQ stock market on July 15,
2009.
The Notes are
secured by substantially all of the assets of the Company and the
financing is subject to customary conditions to closing.
The Financing is subject to final acceptance by the Toronto Stock
Exchange.
Richard
Lindstrom, M.D. and Tom Davidson, both of whom are directors of the
Company, invested $100,000 each in the
Financing. Greybrook Corporation, an entity controlled
by Elias Vamvakas, Chairman and Interim CEO of the
Company, or members of his family, invested $110,000 in the
Financing. Nasdaq Listing Rule 5635(c) states that any
sale of dis
