Electromedical
Announces $1.36M Net Proceeds from Building Sale to Fund
WellnessPro Infinity™ Launch and Convertible Note
Retirement
SCOTTSDALE, AZ -- March 22, 2023 --
InvestorsHub NewsWire -- Electromedical Technologies, Inc.
(OTCQB:
EMED) ("Electromedical" or the "Company"), a pioneer in the
development and production of bioelectronic devices designed to
relieve chronic, intractable, and acute pain through frequency and
electro-modulation, is very pleased to announce the completion of
the sale of a building owned by the Company in Scottsdale,
AZ.
The transaction closed on March 15,
2023, for a total sale price of $2 million, of which the Company
netted $1,363,817.64 in total cash proceeds after payment of
mortgage and expenses related to the sale.
Management notes that the sale of the
building will not interrupt operations as the Company has already
leased back the space on favorable terms.
"This cash infusion will position the
Company and our shareholders on very firm ground as we prepare to
launch the WellnessPro Infinity™, our next-gen market leading
flagship device," stated CEO, Matthew Wolfson. "We will now be able
to aggressively remove dilution risk as well as fully fund
pre-production and production activities into the new product
launch in Q3."
The Company plans to deploy capital from
the building sale to pay off convertible notes to expel dilution
risk as a first step. Remaining funds will be used to pay for
development of molds for the WellnessPro Infinity™ device as well
as the production of new units to fulfill initial
orders.
Wolfson continued, "This capital covers
all overhead and growth funding needs through the end of Q2. That
will lead us right up to our presale roll-out in Q3 and the
beginning of cash generation from sales of new units. We look
forward to being cashflow positive and reliant on growth capital
from operations later this year."
Management anticipates presales of the
WellnessPro Infinity™ device to pick up in early Q3, with many
existing customers expected to upgrade to the new next-generation
device. The Company will be rolling out an exchange program whereby
existing customers will be able to exchange their old units for a
credit toward the purchase of a new WellnessPro Infinity™
unit.
Based on its own internal analysis, the
Company anticipates at least $2 million in estimated revenues from
this presale program in Q2-Q3 2023. At that point, the Company will
be positioned to fund future growth through cash from
operations.
About Electromedical
Technologies
Headquartered in Scottsdale, Arizona,
Electromedical Technologies, Inc. is a commercial stage, FDA
cleared, bioelectronic medical device manufacturing company
initially focused on the treatment of various chronic, acute,
intractable, and post-operative pain conditions. Through University
collaboration agreements, the Company is working to develop a
comprehensive research program in defining the effects of
electro-modulation on the human body. By studying the impacts of
electrical fields in cell signaling and effects on virus assembly
and immune responses, the Company's goal is to reduce pain and
improve overall human wellbeing. The Company's current FDA cleared
product indications are for chronic acute post traumatic and
post-operative, intractable pain relief.
For more information, please visit
www.electromedtech.com
Note: Nonhuman preliminary studies that
we are planning to start in the near future and their applications
are not related to our current product in any way and are currently
not cleared in the US.
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.
Corporate
Contact:
Electromedical Technologies, Inc. Tel:
1.888.880.7888
Email:
ir@electromedtech.com
https://electromedtech.com
Public
Relations:
EDM Media, LLC
https://edm.media
SOURCE Electromedical Technologies,
Inc.