True Nature Restructures Obligations and Senior Securities

True Nature (OTCMKTS:TNTY) has recently announced significant restructuring efforts aimed at managing its obligations and senior securities. The company has successfully converted over $12 million of its obligations into restricted common stock priced at $4.00 per share, alongside exchanging over $13 million of senior securities into a newly created non-interest bearing preferred stock. These obligations were associated with its clinic business, which was discontinued in the fiscal year 2022.

The current report serves as an update to the details provided in a previous Form 8-K filing dated October 24, 2024. Since September 28, 2024, True Nature has executed Obligation Exchange Agreements resulting in the conversion of approximately $12 million of various obligations into restricted common stock, totaling around 2.5 million shares. Additionally, the company has authorized the issuance of 534,835 shares of its newly created Series A Amortizing Convertible Preferred Stock to accredited institutional investors in exchange for canceling $13,370,883 million of its Series D and Series F Preferred shares.

The Series A Shares carry a stated value of $25.00 per share and may be converted into common stock at the holder’s discretion or mandatorily by the company based on specific conditions outlined in the certificate of designation. True Nature has outlined redemption terms for the Series A Shares, signaling a monthly redemption process beginning in January 2025.

Acknowledging the risks associated with the Series A Preferred Stock issuance, True Nature has restricted it to accredited institutional entities. As of the filing date, only seven historical senior securities and notes remain outstanding, with the company actively negotiating their restructuring. The settlement involves canceling warrants as part of the restructuring agreements.

Moving forward, True Nature anticipates recognizing a substantial gain upon extinguishing the outstanding debt through the conversion process, subject to final auditing review. The company has committed to filing a registration statement within 120 days to facilitate the resale of common stock issued in exchange for obligations and shares potentially issued upon the conversion or redemption of Series A Preferred stock. The efficacy of this process and market demand for the shares remain uncertain.

True Nature is engaged in discussions with institutional investors to further advance its restructuring plans, with the aim of resolving most of its payables, notes, and obligations by December 31, 2024. Despite positive feedback, the company acknowledges uncertainties surrounding the restructuring’s success and the sustainability of current business activities in supporting public company costs.

Cautionary forward-looking statements accompany this report, urging stakeholders to carefully consider the uncertainties and risks impacting True Nature’s future plans and financial performance.

The company has included key agreements and accompanying documentation in this report for reference and transparency purposes.

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.

True Nature Company Profile

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.