The Conversation (0)
Rennova Health announced it entered into a securities purchase agreement.
Rennova Health (OTCQB:RNVA; OTCQB:RNVAW) announced it entered into a securities purchase agreement.
As quoted in the press release:
Pursuant to the Purchase Agreement, the Company has agreed to issue $4,960,000 in aggregate stated value of Convertible Preferred Stock. The Purchase Agreement contains certain customary representations, warranties and covenants. Proceeds from the Purchase Agreement are expected to be $4,000,000. The closing of the offering is expected to occur on or about October 30, 2017 and is subject to, among other things, receiving certain consents and other customary closing conditions.
The Preferred Stock may be converted into common stock at any time at a conversion price equal to the lower of 85% of the market price or $1.00. The Preferred Stock does not include any security interest in assets of the Company or any fixed dividend rights and the Company is not required to file a registration statement for the shares of common stock underlying the Preferred Stock.
“This equity investment combined with the granting of our previously announced CMS number for our hospital, enabling us to bill and collect for hospital services rendered, is expected to provide adequate capital to complete the repayment of certain debts and enable the Company to get its current business to cash flow break-even without need of further investment,” said Seamus Lagan, CEO of Rennova Health, Inc.
Click here to read the full press release.
Source: www.marketwired.com