Electromedical Technologies Announces Significant Debt Reduction through Restructuring and Conversion into Restricted Common Shares of the Company

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 millionThe 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.

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SOURCE Electromedical Technologies, Inc

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