September 02, 2020 – Rennova Health, Inc. (OTC: RNVA) (OTC: RNVAW), today announced that on August 31, 2020, the Company completed agreements with certain institutional investors to reduce their holdings of the Company’s secured debentures by approximately $19.3 million by exchanging the debentures for shares of the Company’s newly-authorized Series N Convertible Redeemable Preferred Stock (the “Series N Preferred Stock”).
The investors continue to own approximately $14.9 million of secured debentures, but have agreed that the Company could redeem $10 million of its obligations under these debentures within 90 days at which time the outstanding balance will also be exchanged to the Company’s Series N Preferred Stock.
The investors exchanged approximately $19.3 million of debentures and all of the outstanding shares of the Company’s Series I-1 Convertible Preferred Stock and Series I-2 Convertible Preferred Stock for 30,435 shares of the Company’s newly-authorized Series N Convertible Redeemable Preferred Stock.
This transaction combined with the previously disclosed exchange of approximately $18.8 million of debt to Preferred Stock by a previous Director of the Company on June 30th reduces debt on the Company’s balance sheet by approximately $38 million.
“This reduction of secured debt is a significant step in the final phase of our restructure”. said Seamus Lagan, CEO of Rennova Health, “After our recent reverse split the improvement in our balance sheet and reduction of ongoing penalties and charges as a result of this transaction will create a much clearer picture for our shareholders and investors and should facilitate access to additional capital as may be required to improve and expand the Company’s’ business strategy. We look forward to providing additional updates of progress of our business strategy, including the separation of our software division in the coming days”.
The Company has 1,277,429 shares of common stock outstanding as of close of business on September 1, 2020.
About Rennova Health, Inc.
Rennova operates three rural hospitals and a physician’s office in Tennessee and a rural clinic in Kentucky, and provides industry-leading diagnostics and supportive software solutions to healthcare providers. Through an ever-expanding group of strategic brands that work in unison to empower customers, we are creating the next generation of healthcare. For more information, please visit www.rennovahealth.com
