Inova Labs completes $10 million Series A Preferred Stock financing

May 20 2010

Inova Labs, Inc. of Austin, Texas announced today the closing of the private placement of shares of its Series A Preferred Stock. The placement went to investment funds affiliated with Three Arch Partners, based in Silicon Valley, California. Inova received gross proceeds of $10.0 million from the equity financing, which will be used for nationwide and international sales expansion of its LifeChoice^® portable oxygen concentrator product line, continuation of next stage developments, and working capital.

“The LifeChoice product line is manufactured in Austin, Texas, and with our expansion, we will immediately begin hiring additional sales, marketing, product engineers, manufacturing-related employees in supervisory positions, and others, for an estimated additional 75 jobs over this next year.”

The LifeChoice^® is a Stationary and Portable Oxygen Concentrator (POC) with a pulse mode system, delivering oxygen equivalent to a continuous flow of 1, 2 and 3 lpm, and is equipped with state-of-the-art SLEEP MODE technology. The compact size, light weight (under 5 lbs), and over 5 hours of battery time, allow patients relying upon supplemental oxygen to be more active and independent.

David Shockley, President and Chief Executive Officer of Inova Labs, said, "We are pleased to complete this equity financing, and we especially appreciate the support of Three Arch Partners. We look forward to the global sales expansion of our LifeChoice product line and continued sales growth in 2010 and beyond."

He continued, "The LifeChoice product line is manufactured in Austin, Texas, and with our expansion, we will immediately begin hiring additional sales, marketing, product engineers, manufacturing-related employees in supervisory positions, and others, for an estimated additional 75 jobs over this next year."

In connection with the financing, Dr. Richard Lin, Partner at Three Arch Partners will be joining Inova's Board of Directors. Said Dr. Lin, "We are excited about this opportunity to invest in an early stage company with tremendous growth potential, and which is providing such an important product to the community."