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eWellness Announces Common Stockholders can Participate in the New Registered Offering of 13% Perpetual Preferred Stock with Proceeds to Retire Convertible Notes & Provide Additional Working Capital
eWellness Announces Common Stockholders can Participate in the New Registered Offering of 13% Perpetual Preferred Stock with Proceeds to Retire Convertible Notes & Provide Additional Working Capital.
About this update from Ewellness Healthcare Corp
[{"type":"text","content":"\n Ft. Lauderdale, Florida, Dec. 18, 2019 (GLOBE NEWSWIRE) -- eWellness Healthcare Corporation (“EWLL”, the Company”), a provider of the state of the art PHZIO platform for the physical therapy (“PT”) and telehealth markets, announced today that the Company plans to allow its common stockholders to exchange up to $1.2 million worth of common stock for the Company’s units including newly authorized shares of 13% Perpetual Preferred Stock and Warrants (the “Units”), as described below, on a pari-passu basis. The exchange ratio will be set on the day of the first closing of the Perpetual Preferred Stock offering. The Company plans to file a Registration Statement on Form S-1 offering up to 2 million Units at an offering price of $25 per Unit, each consisting of: (i) one share of 13% Cumulative Perpetual Preferred Stock having a stated value of $25 per share (the “Cumulative Preferred Stock”); and (ii) five common stock purchase warrants (the “Warrants”), each exercisable for five years from the effective date of the initial closing of the Registration Statement (the “Effective Date”). The Cumulative Preferred Stock, the Warrants and the shares of Common Stock underlying the Warrants will be registered in the Registration Statement. The dividends at 13% per annum for the first three years will be escrowed from the $25 Unit offering price, representing $9.75 per share, which will result in net proceeds to the Company of $15.25 per share. These escrowed dividends shall be paid monthly from an escrow account to be established at IFEB Bank (the “Escrow Agent”). The Company can redeem the Cumulative Preferred Stock after three years at the $25 per share stated value or at any time after the 36-month anniversary of the Effective Date. Starting in year four, if not redeemed, the Company will pay the $3.25 per share yearly dividends in twelve equal monthly installments and, if any dividends are not paid, they will be cumulative and be accrued. Upon the first closing, which shall occur immediately following the sale of 160,000 Units resulting in gross proceeds to the Company of $4 million, the Company will apply for the initial listing on the OTCQX of the shares of Cumulative Preferred Stock, the Warrants and, if eligible, the shares und...