Renovaro Strengthens Balance Sheet Through Debt Conversion and Advances AI-Driven Initiatives

Rhea-AI Summary

Renovaro (NASDAQ:RENB) has announced a significant financial restructuring where senior debt holders agreed to convert approximately $9.7 million of outstanding senior debt into equity. The conversion will result in the issuance of approximately 53.6 million shares of common stock at $0.30 per share.

The company has also implemented a cost-saving program to improve operational efficiency. This strategic move aims to enhance Renovaro's balance sheet by reducing debt obligations and providing greater financial flexibility to support its AI-driven drug discovery and diagnostic platforms.

Positive

• Elimination of $9.7 million in senior debt through conversion to equity
• Implementation of targeted cost-saving program to improve operational efficiency
• Senior debt holders' conversion indicates confidence in company's vision
• Enhanced financial flexibility for AI technology investments

Negative

• Significant shareholder dilution with issuance of 53.6 million new shares
• Conversion price of $0.30 per share indicates relatively low stock valuation

News Market Reaction

+1.54%

1 alert

+1.54% News Effect

On the day this news was published, RENB gained 1.54%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

LOS ANGELES, CA / ACCESS Newswire / July 9, 2025 / Renovaro Inc. (NASDAQ:RENB), an AI-driven precision medicine company, today announced that senior debt holders have agreed to convert an aggregate of approximately $9.7 million of outstanding senior debt into convertible debt which they have elected to convert into equity.

Under the terms of the agreement, the Company will issue an aggregate of approximately 53.6 million shares of common stock at a conversion price of $0.30 per share. This share issuance includes both the principal amount of the debt, and an inducement provided to the lenders to facilitate the conversion resulting in the full retirement of the $9.7 million in senior debt.

This strategic move significantly enhances Renovaro's balance sheet by reducing outstanding debt and interest obligations, positioning the company for greater financial flexibility and long-term growth. The company has also launched a targeted cost-saving program aimed at improving operational efficiency and preserving capital to support its innovation roadmap.

"The decision by senior debt holders to convert into equity reflects a strong vote of confidence in Renovaro's vision and trajectory," said David Weinstein, Chief Executive Officer of Renovaro. "By fortifying our financial foundation, we are better positioned to accelerate our AI-driven drug discovery and diagnostic platforms that have the potential to transform patient care."

The debt conversion initiative, combined with internal cost optimizations, strengthens Renovaro's ability to invest in its proprietary technology stack and scale partnerships in the life sciences and defense sectors. The company remains committed to executing on its strategic objectives and delivering long-term value to shareholders.

About Renovaro (NASDAQ:RENB)
Renovaro is a forward-looking biotechnology company harnessing the power of artificial intelligence and data science to develop innovative therapies and diagnostics in oncology, infectious disease, and autoimmune disorders. By integrating cutting-edge machine learning with biomedical research, Renovaro aims to dramatically improve treatment outcomes and enable earlier disease detection.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our filings with the SEC for a discussion of these risks.

Investor Contact:
Nathen Fuentes
CFO
investors@renovaro.com
Phone Number
Company Website: www.renovarogroup.com

SOURCE: Renovaro Biosciences

View the original press release on ACCESS Newswire

FAQ

How much debt did Renovaro (RENB) convert to equity in July 2025?

Renovaro converted approximately $9.7 million of outstanding senior debt into equity at a conversion price of $0.30 per share.

How many new shares will Renovaro (RENB) issue for the debt conversion?

Renovaro will issue approximately 53.6 million shares of common stock as part of the debt conversion agreement.

What is the purpose of Renovaro's debt conversion?

The debt conversion aims to strengthen Renovaro's balance sheet by reducing outstanding debt and interest obligations, providing greater financial flexibility for growth and AI technology investments.

What additional financial measures is Renovaro (RENB) implementing?

Renovaro has launched a targeted cost-saving program to improve operational efficiency and preserve capital for its innovation roadmap.

What is the conversion price for Renovaro's debt restructuring?

The debt is being converted into equity at a price of $0.30 per share, including both the principal amount and an inducement for the lenders.