RE:Ventripoint Diagnostics Removes All Debt From Balance Sheet,Dear Friend;
The NR is straight forward but here is some background;
1. We did 3 rounds of convertible debentures, which all ended up in general security agreement for a total debt of $2.7M.
2. We also issued warrants with these debentures which ended up at an exercise price of 10 cents.
3.
The news release gives the details, but the
good news is all the debt has been converted and the warrants have almost all been exercised. The ones that are left are now subject to an accelerated expiry and must be exercised
before March 5, 2021 (30 days).
4. I want to point out, we were forced to add the accelerated expiry clause but the Exchange when we repriced the warrants and it was triggered automatically. Nothing we could do about it.
5. We have also had most of the warrants from the October 2019 equity round exercised at 11.5 cents. There was no acceleration clause on this series of warrants, but I have asked warrantholders to exercise so we could have the cash and the runway it provides. Most people were happy to accommodate us.
6. So we have 2-years of operating cash in the bank and will get additional cash ~$750,000 as the remaining warrants are exercised as well as sales revenue, government grants and subsides and other sources of income.
7. Given the volume of shares we have been trading (270M in last 4 months), any selling of stock from conversions and warrant exercises has been easily absorbed by the market.
8. So there is really nothing significant to hold back the share price on good news.
9. We are making good progress on operations, but more about that in a future news release.
10. I want to thank all the people who bravely invested and re-invested in the company back in early February 2020, when things were particularly precarious. I am delighted they have made a nice return in the last 12 months. It is only the beginning.
The best part is that we can continue our quest to change cardiac diagnostics and care worldwide, thanks to your support and encouragement.