Accredited Solutions Reaches Agreement With All Convertible Debt Holders for Total Debt Reduction and Exchange Into Preferred Stock

Rhea-AI Summary

Accredited Solutions, Inc. (OTC: ASII), parent company of Diamond Creek Water, has reached a significant agreement with its lenders to exchange all outstanding convertible debt for a new series of preferred stock. This deal results in:

1. Reduction of debt conversion discount from up to 45% to 15%
2. Forgiveness of 100% accrued interest and default interest
3. Overall debt and overhang reduction by approximately 40%

CEO Eduardo Brito expressed gratitude towards investors for their long-term belief in the company. The agreement is expected to significantly improve the company's balance sheet by eliminating all convertible debt, interests, and derivative liabilities. An 8-K filing with further details and a pro-forma balance sheet is anticipated in the coming days.

Positive

• Conversion of all outstanding convertible debt to preferred stock
• Reduction of debt conversion discount from up to 45% to 15%
• 100% forgiveness of accrued interest and default interest
• Overall debt and overhang reduction by approximately 40%
• Elimination of all convertible debt, interests, and derivative liabilities

Negative

• None.

NEW YORK, NY, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Accredited Solutions, Inc. (OTC: ASII) ("Accredited Solutions" or the "Company"), the parent company of Diamond Creek Water, an ionized alkaline bottled water distributed in major grocery and convenience store chains, has secured a binding agreement with its lenders to exchange 100% of its currently outstanding convertible debt for a new series of preferred stock. This new series of preferred stock will reduce the debt conversion discount from as high as 45% with some lenders to 15%, resulting in a 65% reduction in the discount rate in certain cases. Additionally, lenders have agreed to forgive 100% of the total interest and default interest accrued to date, thereby lowering the Company's overall debt and overhang by approximately 40%.

"We are immensely grateful to our remaining investors for working diligently with us to achieve this excellent result," said the Company's CEO, Mr. Eduardo Brito. "This new agreement and the overall debt reduction significantly improves our balance sheet by eliminating all convertible debt, interests and derivative liabilities and converting it into preferred stock, achieving a 40% reduction in overhang. This agreement is a testament to the long-term belief our investors have in our ability to build Accredited Solutions into a great company together.  We’ll be filing an 8-K in the coming few days to give further details of the transaction and to provide a pro-forma balance sheet to show more clearly what our overall balance improvement is as a result of this agreement."

Relevant Links:
https://www.diamondcreekwater.com
https://www.apokar.com/

Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and the company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

Accredited Solutions, Inc. Contact:
contact information:
info@diamondcreekwater.com
Follow Us on:
X (Twitter): @asii_Inc

Source:
Accredited Solutions, Inc.
https://www.diamondcreekwater.com

FAQ

What is the main outcome of Accredited Solutions' (ASII) recent agreement with lenders?

Accredited Solutions (ASII) has reached an agreement to exchange all outstanding convertible debt for a new series of preferred stock, resulting in a significant debt reduction and improved balance sheet.

How much has Accredited Solutions (ASII) reduced its debt conversion discount?

Accredited Solutions (ASII) has reduced its debt conversion discount from as high as 45% to 15%, resulting in a 65% reduction in the discount rate in certain cases.

What is the total debt and overhang reduction for Accredited Solutions (ASII) following the new agreement?

Following the new agreement, Accredited Solutions (ASII) has reduced its overall debt and overhang by approximately 40%.

When will Accredited Solutions (ASII) provide more details about the debt reduction agreement?

Accredited Solutions (ASII) plans to file an 8-K in the coming days to provide further details of the transaction and a pro-forma balance sheet showing the overall balance improvement.