Business
NEUPATH HEALTH ANNOUNCES PROPOSED SHARES FOR DEBT SETTLEMENT
- Executives agree to take NeuPath shares to continue to participate in the future upside - ...
About this update from Neupath Health Inc.
[{"type":"text","content":"NEUPATH HEALTH ANNOUNCES PROPOSED SHARES FOR DEBT SETTLEMENT\n\n\n .bwalignc { text-align: center; list-style-position: inside }\n \n\n\n\n\n - Executives agree to take NeuPath shares to continue to participate in the future upside -\n \n\n\n\n\n NeuPath Health Inc. (TSXV:NPTH), (“NeuPath” or the “Company”) operates one of Canada’s largest networks of community-based, multidisciplinary medical facilities focused on the assessment and treatment of chronic pain, musculoskeletal/back pain, sports medicine and other pain medical services markets, announced today that it intends to settle an aggregate amount of $420,000 of indebtedness (the “\n \n Debt\n \n ”) owing to Joseph Walewicz, the Company’s former Chief Executive Officer, and Jeff Zygouras, the Company’s Chief Financial Officer, through the issuance of an aggregate of 893,616 common shares in the capital of the Company (the “\n \n Settlement Shares\n \n ”) at a deemed price of $0.47 per Settlement Share, being the closing price of the Company’s common shares on the TSX Venture Exchange (the “\n \n Exchange\n \n ”) on March 31, 2026 (the “\n \n Debt Settlement\n \n ”).\n \n\n The Debt represents a portion of accrued one‑time performance‑based bonuses (“\n \n LTI Award\n \n ”) payable to each of Mr. Walewicz and Mr. Zygouras in respect of the achievement of specified performance metrics for the period from January 1, 2023 to December 31, 2025 (“\n \n Performance Period\n \n ”), as more particularly described in the Company’s management information circular dated April 22, 2025. The LTI Award was a performance and retention bonus that was implemented at a time when the Company was facing challenges resulting from poor financial performance. At that time, following the year ended December 31, 2022, the Company was in a net debt position of $3.1 million, with revenues of $62.7 million and Adjusted EBITDA of $2.3 million. When the Performance Period ended, the net debt position improved significantly to $1.7 million, revenue grew by 39% to $87.2 and Adjusted EBITDA grew by 161% to $6.0 million. Following the completion of this settlement, the board and management’s insider ownership would be 13%.\n \n\n “On b...