Rennova Health announces $2m private placement, restructured debt

Rennova Health today announced $2.1 million in private placements as well as repayment and restructuring of its existing debt.

The West Palm Beach, Fla.-based company said it inked a securities purchase agreement with with certain institutional investors, issuing $2.6 million in aggregate principal amount of senior secured original issue discount convertible debentures due 2 years from issuance. The company also issued 3 series of warrants to purchase shares of common stock. Proceeds from the agreement are expected to be $2.1 million.

Simultaneously, Rennova Health said that holders of its original issue discount debentures issued on July 17 and due Oct 17 this year will exchange $4.1 million in principal amount of debentures for $6.4 million in new debentures on the same terms as the new debentures.

The debentures can be converted at any time at a conversion price of 26¢, the company said, and will begin to amortize monthly 90 days after closing, according to a press release.

In February, Rennova Health said it initiated a 1-for-30 reverse stock split. The move put 1 single share of stock in the hands of shareholders for every 30 shares they held.

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