HealthLynked Corp (OTCQB:HLYK) announced that one of its early investors, Iconic Holdings, LLC, has agreed to convert all of its $1.3 million convertible debt, including principal and accrued interest, into 13.5 million HealthLynked common shares.
The company said this will not only eliminate the interest payments but will also allow HealthLynked to obtain a bank line of credit at current low interest rates.
“This conversion from debt to equity allows us to further strengthen our balance sheet and reallocates $1.3 million in working capital that will not be required for retirement of Iconic's debt in cash,” HealthLynked chief financial officer George O'Leary said in a statement.
He added: “Iconic Holdings has been a great partner over the last four years, and we are thrilled that they are converting their debt to equity as they continue to support HealthLynked's planned growth.”
HealthLynked noted that Iconic Holdings will also receive 13.5 million, five-year warrants with an exercise price of $0.30 per share in exchange for a 180-day leak out provision, 5% of daily volume for the first 90 days and 10% of daily volume for the next 90 days.
Naples, Florida-based HealthLynked is a global healthcare network focused on patient care management. It connects patients, doctors and data through its global healthcare network using technology to reduce costs and improve patient outcomes.
The company announced recently that its 3Q 2020 revenue jumped 74% year over year to $2,040,155, which HealthLynked attributed to a 23% increase in patient service revenue on a year-to-date basis.
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