CLEVELAND, Aug. 15, 2018 /PRNewswire/ -- DATATRAK International, Inc. (OTC Markets: DTRK), a Vertical SaaS (software-as-a-service) provider and innovation leader of cloud-based technologies for the life sciences industry, announces an $8,000,000 additional commitment from its long-term investor TabaFund (Tabatabai Investment Partners LP) to expand the company's growth in sales and new technologies for the life sciences and clinical research industry.
"Datatrak has a strong management team that we continue to believe in and this investment further encourages their pursuit of the vision our CEO, Jim Bob Ward, has set forth and continues to execute upon," said Alex Tabatabai, chief investment officer of TabaFund. "TabaFund continues to demonstrate significant confidence by making an even larger, long-term investment in our company," said Jim Bob Ward, President and CEO of DATATRAK. "TabaFund led the proxy campaign to change past leadership in 2015, then in 2016, TabaFund invested an additional $1,500,000 in the company to reach our current profitability. Now, TabaFund is doubling down to fuel our growth and platform expansion plans."
"TabaFund had a choice of investing its money into any of the eClinical companies, and the decision to invest our money into DATATRAK is obvious when you review the competitive landscape and their respective technology. DATATRAK is the only eClinical company with a vertically integrated SaaS enterprise caliber platform built on a single unified source code, so the Company can put the money we invest into innovation, deeper vertical integration and business intelligence," said Alex Tabatabai, the managing member of TabaFund. He went on to say, "This is yet another vote of confidence for DATATRAK and the biggest one to date. When you review the eClinical industry, smaller competitors with less product offerings, which we believe require significantly more capital in order to rebuild stand-alone applications into the enterprise platform that DATATRAK already has, are bringing private equity valuations of $80-$100M. Furthermore, the eClinical industry continues to consistently be one of the fastest growing industries because clinical trials need to incorporate more technology solutions to improve healthcare for patients. All of this points to tremendous opportunity for the investment in DATATRAK."
DATATRAK's Enterprise Cloud has been deployed across 83 countries by over 63,000 users and captured hundreds of millions of clinical trial datapoints. Their advanced platform provides a single login, multi-tenant and multi-lingual SaaS offering with deep vertical integration to create, execute and manage clinical trials that capture data from devices, patients, sites and labs. They provide value to pharmaceutical, medical device and bio-tech customers through workflow automation and real-time access to new data visualization and predictive analytics capabilities for business intelligence.
TabaFund and DATATRAK entered into a second convertible note agreement on February 9, 2018, with terms similar to their first agreement in 2016, which as of June 30, 2018, has not been drawn upon between the related parties. The agreement provides for the option of repayment by fully converting the amount into shares of DATATRAK stock and includes standard provisions for such an agreement. DATATRAK operates its business in the fastest growth industry in our economy, software and data management for clinical trials for pharmaceutical, medical device and biotech companies. The global industry has seen annual growth of over 10% for over 15 years now and the growth is expected to continue well into the future. DATATRAK has expanded its offerings in China, which is the second largest pharmaceutical market in the world, growing at 9.1% annually and forecasted to reach $167 billion by 2020.
This growth creates the opportunity for additional investment to be used to expand sales, marketing and product development resources to meet our customers' ongoing demand for products and services. DATATRAK will continue as an innovator to expand the Cloud Enterprise platform into business analysis and predictive analytics (BI) across laboratory images, ECGs and patient direct assessments and diaries (ePRO), wearable devices (eCOA), and through informed consent (eConsent).
We expect delivery of patient direct solutions for 2018 and more heading into 2019, DATATRAK is focusing on market demands. "We want to make sure we fully understand users' needs, and make sure we align our delivery with those expectations," says Tim Lyons, Vice President of Product Development and Operations for DATATRAK. "As we look across the mobile health landscape and talk with our customers, we are gaining intelligence to better understand customer pain-points and deficits of other systems while keying in on areas where we can address those frustrations. Our offering will look to deliver an intuitive and user friendly solution to patients and sites while effectively leveraging the existing power of the DATATRAK Enterprise Cloud to convert that data into actionable information for our customers."
About DATATRAK International, Inc.
DATATRAK International is a worldwide technology and services company delivering unified eClinical solutions and related services for the clinical trials industry. DATATRAK built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via DATATRAK's Clinical and Consulting Services group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The DATATRAK software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Preclinical and Phase I - Phase IV drug and device studies in multiple languages throughout the world. DATATRAK is located in Cleveland, Ohio and College Station, Texas. For more information, visit http://www.datatrak.com.
TabaFund (Tabatabai Investment Partners LP) is a private investment fund that identifies and acquires value-oriented financial assets and operating businesses. TabaFund examines all components of a business's capital structure from debt to equity to derivatives and has expertise with complex circumstances and special situations. TabaFund's Chief Investment Officer, Alex Tabatabai, has actively managed investments since 2010 and has a track record of beating market returns by producing investment returns that average out to about 30% per year.
TabaFund has been the largest shareholder of DATATRAK International, Inc. since 2015, led the proxy contest to change Datatrak's leadership and executed the turnaround of DATATRAK bringing it to profitability since 2016. TabaFund has successfully closed and executed financings and investments for DATATRAK, which have been mutually successful. For more information, visit www.tabafund.com.
Except for the historical information contained in this press release, the statements made in this release are forward-looking statements. These forward-looking statements
are made based on management's expectations, assumptions, estimates and current beliefs concerning the operations, future results and prospects of the Company and are subject to uncertainties and factors which are difficult to predict and, in many instances, are beyond the control of the Company, and which could cause actual results to differ materially from those contemplated in these forward-looking statements. All statements that address operating performance, events or developments that management anticipates will occur in the future, including statements related to future revenue, profits, expenses, cost reductions, cash management alternatives and working capital requirements, strategic alternatives, raising additional funds, income and earnings per share or statements expressing general opinion about future results, are forward-looking statements. For a list of certain factors that may cause actual results to differ materially from those contemplated in these forward looking statements, please see the Company's report filed with the OTC Markets on March 21, 2018 announcing its results for the full-year period ended December 31, 2017 and subsequent filings with the OTC Markets. The Company undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise.
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SOURCE DATATRAK International, Inc.