Yesterday, the Chief Executive Officer and Chairman of Stemtech Corporation (OTCMKTS:STEK) Charles S Arnold made a key announcement with regard to the debt structuring at the company and it could well be a good time to take a closer look into the development.
Stemtech Corporation Announces Debt Restructuring
He noted that when the company went through its reverse merger, a total of three convertible debt instruments had been issued for the purpose of separating institutional investors. He went on to note that the funding that had been made available to the company was an interim step that had been necessary at the time to help Stemtech Corporation in expanding its market presence.
Arnold announced yesterday that two of the institutional investors had agreed to convert the entire debt that they held into equity and warrant positions. That had come to fruition after months of negations. It was a major new development for the company given the fact that it effectively led to the extinguishing of two significant blocks of debt. The third institutional investor had signed a new agreement that was going to get rid of all conversion features and had instead agreed on a cash payment schedule.