TruGolf Improves Balance Sheet with Agreement to Eliminate All Convertible Notes
TruGolf Holdings (NASDAQ: TRUG) has announced a significant balance sheet restructuring through agreements to exchange all outstanding convertible notes into newly created Series A Preferred Stock. The deal includes:
- Converting approximately $9.3 million in outstanding debt into equity
- Exchange of common stock warrants for Series A Preferred Stock and additional warrants
- Potential for $15.1 million in additional gross proceeds if new warrants are fully exercised
- Conversion of founders' existing dividends into Class A and Class B common stock
The restructuring aims to improve TruGolf's capital structure and reduce debt to meet NASDAQ's continued listing requirements. The transaction requires shareholder approval, with a vote planned for the future.
TruGolf Holdings (NASDAQ: TRUG) ha annunciato una significativa ristrutturazione del bilancio attraverso accordi per convertire tutti i prestiti convertibili in circolazione in nuove azioni privilegiate di Serie A. L'accordo prevede:
- La conversione di circa 9,3 milioni di dollari di debito in circolazione in capitale sociale
- Lo scambio di warrant su azioni ordinarie con azioni privilegiate di Serie A e warrant aggiuntivi
- La possibilità di ottenere 15,1 milioni di dollari di proventi lordi aggiuntivi se i nuovi warrant saranno esercitati completamente
- La conversione dei dividendi esistenti dei fondatori in azioni ordinarie di Classe A e Classe B
La ristrutturazione mira a migliorare la struttura del capitale di TruGolf e a ridurre il debito per soddisfare i requisiti di quotazione continua del NASDAQ. La transazione necessita dell'approvazione degli azionisti, con una votazione prevista in futuro.
TruGolf Holdings (NASDAQ: TRUG) ha anunciado una importante reestructuración del balance mediante acuerdos para intercambiar todas las notas convertibles pendientes por nuevas acciones preferentes Serie A. El acuerdo incluye:
- La conversión de aproximadamente 9,3 millones de dólares de deuda pendiente en capital
- El intercambio de warrants de acciones comunes por acciones preferentes Serie A y warrants adicionales
- La posibilidad de obtener 15,1 millones de dólares adicionales en ingresos brutos si se ejercen completamente los nuevos warrants
- La conversión de los dividendos existentes de los fundadores en acciones comunes Clase A y Clase B
La reestructuración busca mejorar la estructura de capital de TruGolf y reducir la deuda para cumplir con los requisitos de cotización continua del NASDAQ. La transacción requiere la aprobación de los accionistas, con una votación prevista para el futuro.
TruGolf Holdings (NASDAQ: TRUG)는 모든 미상환 전환사채를 새로 발행된 시리즈 A 우선주로 교환하는 계약을 통해 중요한 재무구조 재편을 발표했습니다. 거래 내용은 다음과 같습니다:
- 약 930만 달러의 미상환 부채를 자본으로 전환
- 보통주 워런트를 시리즈 A 우선주 및 추가 워런트로 교환
- 신규 워런트가 전액 행사될 경우 1,510만 달러의 추가 총수익 가능성
- 창업자 기존 배당금을 클래스 A 및 클래스 B 보통주로 전환
이번 재편은 TruGolf의 자본 구조를 개선하고 부채를 줄여 NASDAQ의 계속 상장 요건을 충족하기 위한 것입니다. 거래는 주주 승인이 필요하며, 향후 투표가 예정되어 있습니다.
TruGolf Holdings (NASDAQ : TRUG) a annoncé une importante restructuration de son bilan via des accords d’échange de toutes les obligations convertibles en circulation contre de nouvelles actions privilégiées de Série A. L’accord comprend :
- La conversion d’environ 9,3 millions de dollars de dette en circulation en actions
- L’échange des bons de souscription d’actions ordinaires contre des actions privilégiées de Série A et des bons supplémentaires
- La possibilité d’obtenir 15,1 millions de dollars de produits bruts supplémentaires si les nouveaux bons sont entièrement exercés
- La conversion des dividendes existants des fondateurs en actions ordinaires de classe A et B
Cette restructuration vise à améliorer la structure financière de TruGolf et à réduire la dette afin de répondre aux exigences de cotation continue du NASDAQ. La transaction nécessite l’approbation des actionnaires, un vote étant prévu ultérieurement.
TruGolf Holdings (NASDAQ: TRUG) hat eine bedeutende Bilanzrestrukturierung angekündigt, bei der alle ausstehenden wandelbaren Schuldverschreibungen in neu geschaffene Vorzugsaktien der Serie A umgetauscht werden. Das Geschäft umfasst:
- Die Umwandlung von etwa 9,3 Millionen US-Dollar ausstehenden Schulden in Eigenkapital
- Den Tausch von Stammaktien-Warrants gegen Vorzugsaktien der Serie A und zusätzliche Warrants
- Die Möglichkeit von 15,1 Millionen US-Dollar zusätzlicher Bruttoerlöse, falls die neuen Warrants vollständig ausgeübt werden
- Die Umwandlung der bestehenden Dividenden der Gründer in Stammaktien der Klasse A und Klasse B
Die Restrukturierung zielt darauf ab, die Kapitalstruktur von TruGolf zu verbessern und die Verschuldung zu reduzieren, um die fortlaufenden Notierungsanforderungen der NASDAQ zu erfüllen. Die Transaktion bedarf der Zustimmung der Aktionäre, eine Abstimmung ist in Zukunft geplant.
- Elimination of $9.3 million in debt improves balance sheet
- Potential for $15.1 million additional funding through warrant exercises
- Restructuring helps maintain NASDAQ listing compliance
- Termination of noteholders' ability to invest in further debt tranches
- Transaction requires shareholder approval, creating execution risk
- Significant dilution to existing shareholders through preferred stock issuance
- Company facing NASDAQ listing compliance issues
Insights
TruGolf eliminates $9.3M debt by converting notes to equity, addressing NASDAQ listing requirements while creating opportunity for $15.1M additional capital.
The agreement to eliminate all convertible notes represents a significant balance sheet restructuring for TruGolf. The company has secured agreements to convert approximately
This financial maneuver addresses multiple issues simultaneously. First, it eliminates debt service requirements, freeing up cash flow that would otherwise go toward interest payments. Second, it explicitly aims to meet NASDAQ's continued listing requirements, suggesting the company's current debt structure may have threatened its exchange listing status.
The restructuring also creates a potential capital influx mechanism. The new warrants, if fully exercised by investors, would generate
The company's founders have demonstrated alignment with this restructuring by converting dividends owed to them into common stock rather than taking cash payments. Additionally, the termination of noteholders' ability to invest in further tranches of debt prevents additional leveraging.
The transaction does face one significant hurdle: it requires shareholder approval, introducing execution uncertainty. The conversion will also increase the outstanding share count, creating some dilution effect for existing shareholders.
This restructuring represents a classic balance sheet improvement strategy that trades debt obligations for equity ownership, strengthening the company's financial foundation while giving it improved flexibility to address future business needs and maintain its NASDAQ listing.
All Convertible Notes & Majority of Related Party Notes to be Converted to Equity
Salt Lake City, Utah, April 24, 2025 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, announced today that it has entered into agreements with its existing noteholders to exchange all its outstanding convertible notes into a newly created Series A Preferred Stock. In addition, the common stock warrants previously issued with the convertible notes were exchanged for a combination of newly created Series A Preferred Stock and warrants to purchase additional Series A Preferred Stock, which, if fully exercised in the sole discretion of the investors, would result in an additional
The exchange of the convertible notes and the conversion of the Series A Preferred Stock is subject to certain conditions, including the receipt of shareholder approval. The Company intends to hold a shareholder vote in connection with such required approval in the future. Further information around the foregoing transactions can be found in the Form 8-K filed by the company on April 23, 2025.
Disclaimer on Forward Looking Statements
This news release contains certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute “forward-looking statements” and accordingly, involve estimates, assumptions, forecasts, judgements and uncertainties. Forward-looking statements include, without limitation, the closing of the exchange of the convertible notes for Series A Preferred Stock and the ability of the Company to regain compliance with NASDAQ’s continued listing requirements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" in the Company's Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, which are available on the SEC's website, www.sec.gov
About TruGolf, Inc.:
Since 1983, TruGolf has been passionate about driving the golf industry with innovative indoor golf solutions. TruGolf builds products that capture the spirit of golf. TruGolf's mission is to help grow the game by attempting to make it more Available, Approachable, and Affordable through technology - because TruGolf believes Golf is for Everyone. TruGolf's team has built award-winning video games ("Links"), innovative hardware solutions, and an all-new e-sports platform to connect golfers around the world with E6 CONNECT. Since TruGolf's beginning, TruGolf has continued to attempt to define and redefine what is possible with golf technology.
Contact:
Michael Bacal
mbacal@darrowir.com
917-886-9071
FAQ
How much debt will TruGolf (TRUG) eliminate through its convertible notes exchange?
What is the potential additional funding TruGolf (TRUG) could receive from warrant exercises?
Why is TruGolf (TRUG) converting its convertible notes to preferred stock?
What approvals does TruGolf (TRUG) need for the convertible notes exchange?
