Immune Therapeutics Announces Restructuring Plan
Immune Therapeutics (OTC-PINK: IMUN) announced a non-binding term sheet to secure $700,000 to $1,500,000 from existing shareholders to restructure its debt. The funding will come through non-convertible promissory notes at 5% interest. The company aims to settle other debts with former employees and management while restructuring prior toxic debt totaling $697,000. A 14A Proxy will be filed within 30 days for a new slate of directors. CEO Kevin Phelps emphasized that this restructuring is crucial for the company's growth and improving its balance sheet.
- Secured $700,000 to $1,500,000 in funding from shareholders to restructure debt.
- Successful restructuring of toxic convertible note from 2018, improving financial stability.
- Plans to appoint a new slate of directors enhancing corporate governance.
- The company had a toxic convertible promissory note default since May 2018.
- Existing debt restructuring reflects prior financial challenges.
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Orlando, Florida , June 04, 2021 (GLOBE NEWSWIRE) -- Immune Therapeutics Inc. (OTC-PINK: IMUN) (the "Company") announced today that the Company has received and signed a non-binding term sheet to enter into an agreement that would provide working capital and wipe out a significant portion of its long-standing Debt.
The Company received the term sheet from existing Immune Shareholders to provide the funds necessary to complete the restructuring of Immune. According to the agreement, the investors will lend a minimum of
In connection with the transactions above, to the extent a noteholder holds any warrants to purchase shares of common stock of Borrower (“Warrants”), Lender shall have the right to apply all or any portion of the Debt under this Note toward exercising such Warrants, upon the terms and subject to the conditions provided in the Warrants. Upon converting the warrants, the lenders have a one-year lock-up agreement with leak-out provisions.
In addition, the Company is negotiating with former employees, current management, directors, and other accounts payable and hopes to settle shortly. Closing the transactions contemplated by the Letter of Intent is subject to several conditions being satisfied, including completing due diligence.,
Earlier this year, the Company successfully restructured its toxic convertible promissory Note in default since May of 2018 issued by Iliad Research & Trading, L.P., for
The Note was purchased by Global Reverb Corp and a shareholder in November of 2020. The parties agreed to restructure the balance of
The agreement provides for filing a 14A Proxy within 30 days of closing the agreement and funding. The 14A will provide for a new slate of 5 Directors and Officers. To appoint Turner & Stone LLP as auditors of the Company to hold office until the conclusion of the next general meeting at which accounts are laid before the Company. To conduct any other business properly brought before the Annual Meeting. The lenders will appoint two advisors to the Board until the shareholders during the transaction.
“The restructuring of the notes and funding is a significant achievement for the Company, and we are thankful that our existing lenders agreed that a restructuring would benefit the Company and its growth initiatives. The restructuring improved our balance sheet and was one of the critical next steps in our strategic plan as we are continually working and uplifting. We believe that the amendment of these notes and additional funding is a key accomplishment and that our current market cap does not accurately reflect the value of the Company and the emerging opportunity in biotech," stated Kevin Phelps, Company CEO.
On behalf of the Board of directors of Immune- many of whom are investing alongside you - thank you for your investment and continued shareholder support. We look forward to sharing our progress with you in the coming weeks.
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about the reverse stock split, authorized shares reduction and the related timing of implementation and effects thereof. Forward-looking statements are statements other than statements of historical fact. These forward-looking statements are generally identified by the words "believe," "expect," "anticipate," "estimate," "intend," "plan," "may," "should," "could," "will," "would," and "will be," and variations of such words and similar expressions, although not all forward-looking statements contain these identifying words. Although we believe the expectations and forecasts reflected in the forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate or changed assumptions or by known or unknown risks and uncertainties.
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