GlucoTrack

Kurta Law is investigating broker recommendations of GlucoTrack (NASDAQ: GCTK). Brokers knew or should have known that this investment comes with a high degree of risk. Investments that are overly risky for an investor’s profile violate securities rules and regulations, such as Regulation Best Interest, which requires brokerage firms and their representatives to have a reasonable basis to believe an investment fits their investor’s best interests.  

If you believe you suffered losses as a result of broker fraud or misconduct, contact (877) 600-0098 or info@kurtalawfirm.com.  

The Offering  

The prospectus dated April 13, 2023, announced an offering of 5,376,427 shares of common stock. The offering also included pre-funded warrants to purchase up to 1,976,470 shares of common stock. The prospectus states that the price per share of common stock was $2.70 per share. As of April 19, 2024, the stock trades for less than a dollar per share and is in danger of being delisted from the stock exchange.  

About GlucoTrack  

According to the prospectus, GlucoTrack is a medical device company that was in the midst of developing two products to be used by people with diabetes and prediabetes. The products consisted of a non-invasive glucose monitor for people with Type 2 diabetes and prediabetes and an implantable continuous glucose monitor for patients with Type 1 diabetes and insulin-dependent Type 2 diabetes.  

Risk Factors Associated with GlucoTrack Investments  

The following risks are clearly identified in the prospectus. Any broker would have known (or should have known) about these risks and should have clearly communicated them to a potential investor. The following are just some of the risks that Kurta Law has chosen to highlight – you can see the full list beginning on page 5 of the prospectus.  

Operating Losses  

At the time of the prospectus, GlucoTrack had a history of operating losses. The company had yet to generate revenue from the sale of its products and did not expect to generate revenue in the near future. 

Approval for Sale in the United States  

GlucoTrack stated that it would “likely be required to undertake significant clinical trials to demonstrate to the FDA that GlucoTrack is safe and effective.” Clinical trials are expensive and uncertain processes that may take years to complete. The result of failed clinical trials could mean that the GlucoTrack products never make it to market.  

Competitors  

While GlucoTrack is developing its products, competitors could develop products that are safer and more effective. GlucoTrack disclosed that these competitors have significantly better financial, manufacturing, and product development resources.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

About Kurta Law 

Kurta Law has won cases for clients who lost money as a result of Regulation Best Interest violations. Our attorneys do not collect a fee unless they win your case. You have a limited timeframe to file a claim, so contact our office today. Call (877) 600-0098 or email info@kurtalawfirm.com.