Business
eWellness Discusses Value Proposition for Common Stockholders to Participate in the New Registered Offering of Perpetual Preferred Stock with Proceeds to Retire Convertible Notes & Provide Additional Working Capital
eWellness Discusses Value Proposition for Common Stockholders to Participate in the New Registered Offering of 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. 23, 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 last week that the Company plans to allow its common stockholders to be able to exchange up to $1.2 million worth of common stock into the Perpetual Preferred Stock offering 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 present market capitalization of the Company is approximately $500,000. Based upon the current market capitalization, this implies that the current shareholders could exchange into an instrument that is more than 2x the present market capitalization of the company’s common stock. We are optimistic that the Preferred Units will be well received by the investment community. 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 and the shares of Common Stock underlying the Warrants will be registered in the Registration Statement. The first three years of dividends at 13% per annum will be escrowed from the $25 offering price, representing $9.75 per share, which will result in net proceeds to the Company of $15.25 per share. These 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. The Cumulative Preferred Stock will be initially listed on t...