Restructuring Initiatives and Agreements Underway at True Nature

True Nature (OTCMKTS:TNTY) has recently initiated significant restructuring efforts aimed at addressing its outstanding obligations. The company has undertaken a restructuring plan encompassing debts, notes, accounts payable, and a portion of its preferred shares issued earlier.

As of September 28, 2024, True Nature has executed Obligation Exchange Agreements, converting a total of $8,122,857 in obligations into restricted common stock at a price per share of $4.00. This conversion has led to the issuance of approximately 2,030,714 shares of restricted common stock. Additionally, the company intends to proceed with Share Exchange Agreements to convert around $12.5 million of its previously issued Series D and Series F Preferred stock into a new Series A Amortizing Convertible Preferred Stock.

The forthcoming Series A Shares, with a stated value of $25 per share, will be convertible into common stock. The company anticipates issuing roughly 500,000 Series A shares through this agreement. The Series A Preferred Stock, subject to specific conditions and timelines, may be converted or redeemed utilizing common stock or cash. The redemption process is slated to commence in January 2025.

Notably, in light of various factors, including regulatory considerations, True Nature will limit the issuance of Series A Preferred Stock solely to accredited institutional entities.

Furthermore, as part of its restructuring efforts, all participants have reached an accord to annul their warrants. True Nature is committed to filing a registration statement within 120 days to register the resale of common stock issued in exchange for obligations and shares resulting from the conversion or redemption of Series A Preferred stock. However, regulatory procedures and market conditions outside the company’s control may impact the timeline and outcome of these registrations and subsequent market activities.

Moreover, True Nature foresees a significant financial gain upon the elimination of its outstanding debts, subject to the completion of the common stock conversion. Auditors are expected to conduct a final review of this transaction’s accounting treatment.

In a bid to bolster its financial capabilities, True Nature inked financing agreements with historical institutional investors on October 23, 2024, to secure funds for compliance-related expenditures. The company expects to enter into similar pacts with additional investors to facilitate ongoing compliance expenses.

Subsequently, in a recent press release issued on October 29, 2024, True Nature provided updates on its restructuring initiatives, Advisory Board appointments, and other operational developments.

As the company navigates through these transformations, uncertainties and risks remain inherent. True Nature acknowledges the potential challenges ahead and is striving to achieve a successful restructuring by the end of 2024. Despite positive feedback received thus far, uncertainties persist regarding the realization of the restructuring goals and the sustainability of the company’s current business activities. Investors are urged to exercise caution and closely monitor developments as the company progresses through this phase of transition.

This news piece contains forward-looking statements. Readers are advised to carefully assess these statements and understand the associated risks and uncertainties that could potentially influence future results.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read True Nature’s 8K filing here.

About True Nature

True Nature Holding, Inc focuses on engaging in compounding pharmacy activities direct to consumers, doctors, and veterinary professionals. It also focuses on the development of software applications in the healthcare arena, including telemedicine; and consideration of services offering using blockchain encryption technology for various aspects of the healthcare industry.