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Theranos secures $100M loan from Fortress Investment

Theranos Inc. secured a $100 million loan from Fortress Investment Group LLC, The Wall Street Journal reported, citing an email to the company's shareholders.

The loan is subject to product and operational milestones and is collateralized by the Palo Alto, Calif.-based company's patent portfolio, according to the email sent by the company's founder and CEO Elizabeth Holmes. The transaction also grants Fortress Investment warrants for 4% of Theranos' equity.

Holmes said the former blood-testing company would continue to cooperate with federal investigations and would defend itself against investor and consumer class actions.

The company, which is accused of faking laboratory tests and deceiving investors, settled a lawsuit in August with pharmacy chain Walgreens Boots Alliance Inc. for allegedly making misleading claims about its technology.