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DIAGNOS (TSXV:ADK) is a company that applies Artificial Intelligence (AI) technology for the early detection of critical health issues. The company announced Monday that it is undergoing debt reorganization and capital restructuring for the further development of the company. As quoted in the press release: Diagnos will be holding a meeting for the holders (the “Debentureholders”) of the …
DIAGNOS (TSXV:ADK) is a company that applies Artificial Intelligence (AI) technology for the early detection of critical health issues. The company announced Monday that it is undergoing debt reorganization and capital restructuring for the further development of the company.
As quoted in the press release:
- Diagnos will be holding a meeting for the holders (the “Debentureholders”) of the 10% secured convertible debentures (the “Debentures”), on April 4, 2019, to obtain their approval for a proposed amendment to the Debentures which would allow the Corporation to immediately redeem the principal amount in the aggregate amount of $4,940,000, plus accrued interest, on the Debentures (the “Debenture Redemption”) payable in common shares (the “Shares”) of the Corporation at the deemed issue price of $0.035 per Share (being $0.35 post Consolidation (as defined herein), the “Redemption Price”). If the Debenture Redemption is not approved, the Corporation will seek approval to amend the terms of the Debentures (the “Debenture Amendments”) to allow the Corporation to: i) make the interest payments in the form of Shares; and, ii) repay the Debentures at maturity, in the form of Shares, based on a Share price equal to the volume weighted average price (VWAP) of the Corporation’s Shares, for the 5 days prior to the interest payment date or the maturity date.
- If the Debenture Redemption is approved, the Corporation will seek to convert the 10% unsecured convertible notes outstanding (the “Notes”) in the aggregate principal of $1,000,000, at the Redemption Price, by private contract (the “Note Redemption”).
- The Debenture Redemption, the Debenture Amendments and the Note Redemption are subject to the approval of the TSX Venture Exchange (the “TSXV”) and compliance with TSXV Corporate Finance Manual – Policies, which establish a minimum share issuance price of $0.05. Accordingly, approval of the Consolidation is required before the transactions contemplated herein can take place.
