SCOTTSDALE, Ariz., July 20, 2022 /PRNewswire/ — 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.
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SOURCE Electromedical Technologies, Inc