Healthy Choice Wellness Corp. Completes Second Tranche of Debt-for-Equity Conversion

Rhea-AI Summary

Healthy Choice Wellness Corp. (NYSEAM: HCWC) has completed its second tranche of debt-to-equity conversion, converting $400,000 of outstanding debt into Class A common stock at market price. This follows previous conversions totaling $1.4 million in debt elimination over the past 60 days. The transaction was executed without discounts or warrants, demonstrating lender confidence. HCWC operates multiple natural and organic grocery store chains including Ada's Natural Market, Paradise Health & Nutrition, Mother Earth's Storehouse, Greens Natural Foods, Ellwood Thompson's, and GreenAcres Market. The company also runs an e-commerce platform, TheVitaminStore.com, through its Healthy U Wholesale subsidiary. This strategic move aims to strengthen the company's balance sheet, reduce liabilities, and provide financial flexibility for expansion in the organic grocery sector.

Positive

• Successful conversion of $400,000 debt to equity at market price without discounts
• Total debt elimination of $1.4 million over past 60 days
• Improved balance sheet strength and reduced liabilities
• Strong lender confidence demonstrated by conversion at market price
• Enhanced financial flexibility for strategic initiatives

Negative

• Potential dilution of existing shareholders due to new share issuance
• Continued reliance on debt-to-equity conversions for balance sheet management

Insights

Financial Analyst

HCWC converts $400K debt to equity at market price, strengthening balance sheet but diluting shareholders, part of $1.4M debt reduction strategy.

Healthy Choice Wellness Corp's completion of this $400,000 debt-for-equity conversion represents the second tranche of a larger $1.4 million debt elimination strategy executed over the past 60 days. This transaction merits careful analysis from multiple perspectives.

The balance sheet implications are immediately positive. By converting debt to equity, HCWC reduces its liability obligations and eliminates associated interest payments, improving key financial ratios like debt-to-equity and interest coverage. This enhanced financial flexibility potentially allows management to redirect cash flow toward strategic growth initiatives in the competitive organic grocery space.

What's particularly notable is that the conversion occurred at current market price without discounts or warrants. In typical debt conversion scenarios, lenders often demand sweeteners to compensate for exchanging the security of debt for equity risk. The absence of such concessions suggests genuine lender confidence in HCWC's valuation and growth trajectory.

However, this transaction necessarily creates shareholder dilution. When new shares are issued to satisfy debt conversion, existing shareholders own a smaller percentage of the company. Without specifics on the conversion price or total outstanding shares, we can't quantify the dilution magnitude, but mathematical dilution is certain.

HCWC's retail footprint spans multiple natural food store brands across several states, indicating a substantial operational foundation requiring careful capital structure management. This transaction appears to be part of a deliberate strategy to strengthen financial fundamentals rather than a distress response.

The transaction represents a balanced development - positive debt reduction offset by equity dilution - with long-term impact dependent on management's deployment of this enhanced financial flexibility toward value-creating initiatives in the natural foods retail sector.

HOLLYWOOD, FL, May 05, 2025 (GLOBE NEWSWIRE) -- Healthy Choice Wellness Corp. (NYSEAM: HCWC) today announced that it has further strengthened its balance sheet through the conversion of approximately $400,000 in outstanding debt into shares of the Company’s Class A common stock.

This debt-for-equity exchange follows similar transactions over the past 60 days, which, in total, have amounted to approximately $1.4 million in debt elimination. The transaction was executed at the current market price without any discounts or warrants, demonstrating continued lender confidence in the Company’s growth trajectory.

“This latest conversion reflects the strong ongoing support of our lending partners,” said Jeffrey Holman, Chief Executive Officer of Healthy Choice Wellness Corp. “Their willingness to convert at market price reaffirms their belief in our strategic vision, operational performance, and long-term growth potential.”

The transaction improves the Company’s equity base, reduces liabilities, and provides additional financial flexibility to pursue key strategic initiatives in the high-growth organic grocery sector.

Holman added, “We remain focused on enhancing shareholder value by executing our expansion roadmap and strengthening our overall financial position. These steps are part of our broader strategy to ensure the long-term strength and scalability of our business.”

Healthy Choice Wellness Corp. will continue to actively pursue capital structure optimization strategies to enhance long-term investor value.

About Healthy Choice Wellness Corp.
Healthy Choice Wellness Corp. is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. 

Through its wholly owned subsidiaries, the Company operates:

		Ada’s Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.Adasmarket.com).
		Paradise Health & Nutrition’s three stores that likewise offer fresh produce, bulk foods, vitamins, and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.ParadiseHealthDirect.com).
		Mother Earth’s Storehouse, an organic and health food and vitamin store in New York’s Hudson Valley, which has been in existence for over 40 years (www.MotherEarthStorehouse.com).
		Greens Natural Foods’ eight stores in New York and New Jersey, offering a selection of 100% organic produce and all-natural, non-GMO groceries and bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products. (www.Greensnaturalfoods.com).
		Ellwood Thompson’s, an organic and natural health food and vitamin store located in Richmond, Virginia (www.ellwoodthompsons.com).
		GreenAcres Market, an organic and natural health food and vitamin chain with five store locations in Kansas and Oklahoma. GreenAcres Market is a chain of premier natural foods stores, offering organic and all natural products and vitamins from both top national brands as well as locally sourced specialty brand (www.greenacres.com).

Through its wholly owned subsidiary, Healthy U Wholesale, the Company sells vitamins and supplements, as well as health, beauty and personal care products on its website www.TheVitaminStore.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission (SEC) or otherwise. Statements contained in this press release that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are based on management’s estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Forward-looking statements may include, but are not limited to, projections or estimates of revenue, income, or loss, exit costs, cash flow needs and capital expenditures, statements regarding future operations. In addition, when used in this release, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” and “plans” and variations thereof and similar expressions are intended to identify forward looking statements. Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC.

Contact Information

Healthy Choice Wellness Corp.
3800 North 28th Way, Hollywood, FL 33020
305-600-5004
Email: ir@hcwc.com

FAQ

What is the total amount of debt HCWC has converted to equity in the past 60 days?

HCWC has converted a total of $1.4 million in debt to equity over the past 60 days, including the latest conversion of $400,000.

How will the debt-to-equity conversion affect HCWC shareholders?

The conversion strengthens the company's balance sheet and reduces liabilities, but may result in dilution for existing shareholders due to the issuance of new Class A common stock.

What are the main retail chains operated by Healthy Choice Wellness Corp?

HCWC operates Ada's Natural Market, Paradise Health & Nutrition, Mother Earth's Storehouse, Greens Natural Foods, Ellwood Thompson's, and GreenAcres Market.

What was the conversion price for HCWC's debt-to-equity transaction?

The debt was converted at the current market price without any discounts or warrants.

How many retail locations does Healthy Choice Wellness Corp operate?

HCWC operates multiple locations across its brands, including three Paradise Health stores, eight Greens Natural Foods stores, and five GreenAcres Market locations in various states.