Latest News

Would You Invest in Theranos? Listen to Elizabeth Holmes’s Pitch

0

(Bloomberg) — The jurors in the fraud trial of Elizabeth Holmes asked to review just one piece of evidence before convicting her of defrauding investors: A 30-minute recording of the Theranos Inc. founder pitching potential backers.

Most Read from Bloomberg

Omicron Cases Are Hitting Highs, But New Data Put End in Sight

U.S. Logs Record 1 Million Virus Cases With Data Delay

Police Pinpoint Starting Point of Historic Colorado Wildfire

Ivanka Trump, Donald Trump Jr. Subpoenaed in Asset Probe

U.S. Catches Kremlin Insider Who May Have Secrets of 2016 Hack

In the 2013 recording, which was submitted into evidence piecemeal, Holmes described Theranos’s relationships and contracts with pharmaceutical companies and the military. She touted her company’s leaps of technological innovation, rocketing share price and a closing window of investment opportunity.

Listen to a recording of the conference call here

The call was taped by Bryan Tolbert, an investor who said he boosted his stake in Theranos by $5 million because Holmes was so persuasive on the call. And while the government said some of her claims were extreme exaggerations and in some cases outright lies, the jury didn’t reach a verdict on the fraud count involving Tolbert, as well as two other counts.

Highlights of the call (with timestamps) include:

06:35 Holmes describes launching Theranos’s retail infrastructure with pharmaceutical companies and efforts to establish “a national footprint as fast as we can.”

11:19 Holmes talks about Theranos’s $7 billion valuation, and how the company is wrestling with how fast to scale given “retail partners have invested hundreds of millions of dollars in building out this framework.”

14:00 Holmes talks about her fundraising goals, including offers from financial institutions for “several hundred million” in capital. She says she knows the company’s valuation is higher than $75 a share, and the importance of picking the right investor base.

17:20 Holmes answers a question about IPO plans, and talks about the advantages of continuing to operate as a private company.

19:19 Holmes talks about Theranos’s work with the U.S. military, saying it’s “a big deal for us”. She discusses getting Theranos’s technology onto medevac helicopters and “doing a lot of work” for special operations.

Note: a portion is missing at around 22 minutes 40 seconds when Tolbert flipped the tape over to keep recording.

Most Read from Bloomberg Businessweek

Europe Sleepwalked Into an Energy Crisis That Could Last Years

Prescription Weight Loss Drugs Are Working, If You Can Get One

Customer Service at the IRS Is So Bad, Even Tax Pros Are Fed Up

What Really Happens When Workers Are Given a Flexible Hybrid Schedule?

How to ‘See’ Time: The Secret to Peak Entrepreneur Productivity

(C)2022 Bloomberg L.P.

Do you owe the ‘dreaded’ alternative minimum tax? Read this before filing your taxes

Previous article

Warren Buffett saw inflation coming early on — 8 tips to help you come out ahead

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News