Wearable Health Solutions, Inc. Settles $633,000 Legacy Debt at Significant Discount, Bolsters Financial Position for Future Growth

Rhea-AI Summary

Wearable Health Solutions, Inc. (WHSI) reached a settlement agreement to pay off a $633,000 Senior Convertible Note of legacy debt at a significant discount to current value. The note was issued in March 2016 and reached with Benza Pharma LLC. The settlement agreement involved two cash payments of $145,000, recently paid, and an additional $200,000 to be paid in 6 months. The company's CEO, Harrysen Mittler, emphasized the positive impact on the company's balance sheet and capital structure, protecting shareholders from significant dilution and preserving cash for operational initiatives.

Positive

• Settlement of $633,000 debt at a significant discount
• Protection of shareholders from significant dilution
• Preservation of cash for operational initiatives

Negative

• None.

NEWPORT BEACH, CA / ACCESSWIRE / August 2, 2023 / Wearable Health Solutions, Inc. (OTC PINK:WHSI) ("WSHI or the "Company"), is a provider of innovative personal emergency response systems and healthcare solutions for seniors. The company reached a settlement agreement to pay off a $633,000 Senior Convertible Note of legacy debt at a significant discount to current value. The note was issued to the company and accepted by an early founder in March of 2016. The settlement agreement, reached with Benza Pharma LLC , represented an Original Principal Amount of $633,000 at 18% interest compounded from March 2016 to July 2023, in which the noteholder was seeking $3 million in damages and it has been settled for a two cash payments of $145,000, recently paid, and an additional $200,000 to be paid in 6 months to resolve the note and matter. "We are pleased to have fortified our balance sheet through the elimination of this old debt, as well as the convertible feature associated with it," said Harrysen Mittler, Chief Executive Officer of Wearable Health Solutions, Inc.

He further stated, "Our recent capital structure cleanup protected our shareholders from significant dilution while currently preserving our cash for high-value, near-term operational initiatives. These efforts have served to strengthen our financial position to ensure we can continue to innovate and work towards creating sustainable, long-term value for our shareholders. We have made efforts to further reduce debts and prepare to finance production of new product inventory for the marketing and sales plans in place. We look forward to providing our shareholders with an update in the short-term on our refined business strategy in 2023 and beyond."

About Us:

Wearable Health Solutions is a cutting-edge technology company that specializes in the development of innovative wearable devices and mIoT software for personal medical alarms and home security devices that are designed for seniors, as well as emergency response systems for employees who work alone. Our mission is to improve user safety and enhance the overall quality of life through the integration of advanced technology and data analytics.

Forward-Looking Statements

Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Wearable Health Solutions and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to (i) Wearable Health Solutions ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Wearable Health Solution's ability to maintain existing, and secure additional, contracts with users of its solutions; (iii) Wearable Health Solution's ability to successfully expand in existing markets and enter new markets; (iv) Wearable Health Solution's ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Wearable Health Solution's business; (viii) changes in government licensing and regulation that may adversely affect Wearable Health Solution's business; (ix) the risk that changes in consumer behavior could adversely affect Wearable Health Solution's business; (x) Wearable Health Solution's ability to protect its intellectual property; (xi) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent quarterly report on filed by Wearable Health Solutions with the Securities and Exchange Commission. Wearable Health Solutions anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Wearable Health Solutions assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

Contact:

www.wearablehealthsolutions.com
2901 W. Pacific Highway Suite 200
Newport Beach CA 92663
Tel: 949-270-7460

SOURCE: Wearable Health Solutions, Inc.

View source version on accesswire.com:
https://www.accesswire.com/771615/Wearable-Health-Solutions-Inc-Settles-633000-Legacy-Debt-at-Significant-Discount-Bolsters-Financial-Position-for-Future-Growth

FAQ

What is the name of the company mentioned in the press release and its ticker symbol?

The company mentioned is Wearable Health Solutions, Inc. and its ticker symbol is WHSI.

What was the amount of the Senior Convertible Note debt that the company settled?

The company settled a $633,000 Senior Convertible Note debt.

Who was the settlement agreement reached with?

The settlement agreement was reached with Benza Pharma LLC.

What were the terms of the settlement agreement?

The settlement involved two cash payments of $145,000, recently paid, and an additional $200,000 to be paid in 6 months.

What did the CEO emphasize regarding the impact of the settlement on the company?

The CEO emphasized the positive impact on the company's balance sheet and capital structure, protecting shareholders from significant dilution and preserving cash for operational initiatives.