True Nature (OTCMKTS:TNTY) has recently provided an update on its ongoing efforts to restructure its obligations, including debts, notes, accounts payable, and certain preferred shares. As revealed in a Form 8-K filing dated November 12, 2024, the company has been actively involved in converting over $10 million of its obligations into restricted common stock since September 28, 2024, at a price per share of $4.00. This initiative has resulted in the issuance of approximately 2.5 million shares of restricted common stock.
Additionally, as of November 12, 2024, True Nature has started processing six Share Exchange Agreements for the cancellation of $13.5 million of its Series D and Series F Preferred shares in exchange for approximately 535,000 shares of its newly established Series A Amortizing Convertible Preferred Stock. The Series A shares have a stated value of $25.00 per share and can be converted into common stock at the option of the holder or mandatorily by the company under certain conditions outlined in the certificate of designation.
Due to the significant risks associated with the Series A Preferred Stock, the issuance of these shares is restricted to accredited institutional entities. As of the filing date, the company still has nine historical senior securities and notes outstanding, eight of which are held by former officers, directors, and related parties. True Nature continues negotiations with these holders for the restructuring of these obligations.
Furthermore, all participants in the restructuring activities have agreed to cancel their warrants. The company has committed to filing a registration statement to register the resale of common stock issued in exchange for its obligations and the shares that may be issued following the conversion or redemption of the Series A Preferred Stock within 120 days from the agreements’ execution date.
It is important to note that while the company anticipates recognizing a substantial gain upon extinguishment of the outstanding debt outlined in the Form 8-K, the treatment of these gains is subject to final review by its auditors.
Investors should be aware of True Nature’s ongoing discussions with institutional investors regarding restructuring plans, with the objective of clearing most payables, notes, and obligations by the end of the fiscal year on December 31, 2024. However, despite positive feedback, success is not guaranteed, and uncertainties around regulatory and market factors could impact the company’s future direction.
The company has also compensated its Board of Directors with restricted stock for their contributions to operations beyond their board responsibilities in the second half of 2024. This compensation structure forms part of the company’s wider efforts to address financial obligations and restructure its balance sheet.
As the company progresses with its restructuring efforts, stakeholders are advised to stay attentive to updates and disclosures to better gauge True Nature’s financial health and future prospects.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read True Nature’s 8K filing here.
About True Nature
True Nature Holding, Inc focuses on engaging in compounding pharmacy activities direct to consumers, doctors, and veterinary professionals. It also focuses on the development of software applications in the healthcare arena, including telemedicine; and consideration of services offering using blockchain encryption technology for various aspects of the healthcare industry.
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