Electromedical Technologies Announces Significant Debt
Reduction through Restructuring and Conversion into Restricted
Common Shares of the Company
SCOTTSDALE, AZ -- July 20, 2022 --
InvestorsHub NewsWire -- Electromedical Technologies, Inc.
(OTC:
EMED) (the "Company"), a pioneer in the development and
manufacturing of bioelectronic devices, including the FDA-cleared
WellnessPro®, designed to relieve chronic, intractable and acute
pains by using frequencies and electro-modulation, today announces
a significant restructuring of its balance sheet via an agreement
with a major debtholder to convert 100% of promissory notes owed
and currently subject to deferment into restricted,
unregistered common shares of the Company.
Under the terms of the agreement, a
holder of multiple convertible promissory notes converted
$668,369.56 of notes and accrued interest into approximately 26.7
million shares of restricted common stock at $0.025 per common
share. In addition, the debt settlement agreement a release of all
claims related to the notes and outlined specific true-up
provisions and adjustments allowing the former debtholder to
receive additional shares should the value of the underlying
settlement shares fall below the set of $0.025 per common
share.
Matthew Wolfson, CEO of the Company,
commented, "This is a significant event for our Company. This
settlement agreement results in this holder's debt converting to
equity. With the newly issued restricted shares, the former
debt holder is now a long-term partner with the Company. We thank
this investor for their faith and trust in this management team and
in our Company.
As of the last balance sheet filed by
the Company for the quarter ending March 31, 2022, total current
liabilities totaled approximately $2.2 million. The
conversion resulted in a 35% reduction in the Company's convertible
promissory note related debt as of that date and represents a
meaningful portion of the liabilities due from the Company over the
next twelve months. The Company plans to file its
results for the quarterly period ending June 30, 2022, over the
coming weeks.
About Electromedical
Technologies, Inc.
Electromedical Technologies is an
Arizona-based bioelectronics manufacturing company with the mission
to improve global wellness for people suffering from various
painful conditions, relieving chronic and acute pain using energy,
frequency, and vibration as an alternative to
pharmaceuticals. Developing and manufacturing bioelectronics
products since 2004, Electromedical Technologies grew over time
into a serious competitor in the electrotherapy market. Through
research and development we have been able to deliver innovative
solutions across a broad range of pain management issues. The
Company is publicly quoted for trading on the OTC Markets quotation
system under the trading symbol
EMED.
Safe Harbor Statement:
This release contains forward-looking
statements that are based upon current expectations or beliefs, as
well as a number of assumptions about future events. Although we
believe that the expectations reflected in the forward-looking
statements and the assumptions upon which they are based are
reasonable, we can give no assurance or guarantee that such
expectations and assumptions will prove to have been correct.
Forward-looking statements are generally identifiable by the use of
words like "may," "will," "should," "could," "expect,"
"anticipate," "estimate," "believe," "intend," or "project" or the
negative of these words or other variations on these words or
comparable terminology. The reader is cautioned not to put undue
reliance on these forward-looking statements, as these statements
are subject to numerous factors and uncertainties, including but
not limited to: adverse economic conditions, competition, adverse
federal, state and local government regulation, international
governmental regulation, inadequate capital, inability to carry out
research, development and commercialization plans, loss or
retirement of key executives and other specific risks. To the
extent that statements in this press release are not strictly
historical, including statements as to revenue projections,
business strategy, outlook, objectives, future milestones, plans,
intentions, goals, future financial conditions, events conditioned
on stockholder or other approval, or otherwise as to future events,
such statements are forward-looking, and are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. The forward-looking statements contained in this
release are subject to certain risks and uncertainties that could
cause actual results to differ materially from the statements
made.
Source: Electromedical
Technologies, Inc.
For more information, please contact
the Company at info@electromedtech.com
(888) 880-7888