ThermoGenesis Holdings, Inc. (NASDAQ:THMO), a biotechnology company specializing in temperature-controlled cellular processing solutions, has converted a portion of its debt into equity, according to a recent SEC filing. The conversion notice was received from Boyalife Group, Inc., its major investor, on March 15, 2024.
The transaction involved converting $1,278,000 of the outstanding principal and $285,000 of the accrued interest, totaling $1,563,000, from the Second Amended and Restated Convertible Promissory Note. This note was initially issued to Boyalife on April 16, 2018, and subsequently amended on March 4, 2022, March 6, 2023, and January 5, 2024.
As a result of the conversion, ThermoGenesis issued 4,113,158 shares of common stock to Boyalife at a conversion price of $0.38 per share. Following this conversion, the remaining outstanding principal and accrued interest on the note is approximately $6,366,000. The company's total outstanding shares have increased to 7,952,780.
This conversion is part of the company’s financial strategy to manage its debt and strengthen its balance sheet. It also reflects the ongoing support from Boyalife Group, which continues to be a key investor in ThermoGenesis.
The information for this article is based on a recent SEC filing.
InvestingPro Insights
ThermoGenesis Holdings, Inc. (NASDAQ:THMO) has taken a significant step towards restructuring its finances with the recent debt-to-equity conversion involving its major investor, Boyalife Group. This move is particularly noteworthy in light of the company's current financial metrics and market performance. According to InvestingPro data, ThermoGenesis has a market capitalization of just $2.35 million, indicating a relatively small size within the biotechnology sector. The company's Price to Earnings (P/E) ratio stands at -0.10, reflecting its lack of profitability in the last twelve months as of Q3 2023.
The company's financial challenges are further underscored by a negative revenue growth of -4.99% for the same period, which may raise concerns about its ability to increase sales and achieve financial stability. Moreover, the company's Price to Book ratio of 0.49 suggests that the market values the company at less than the net value of its assets, which could be seen as a sign of undervaluation or as a reflection of investor skepticism about the company's future prospects.
An InvestingPro Tip highlights that ThermoGenesis operates with a significant debt burden, which is corroborated by the recent conversion of debt into equity. This strategic move could help alleviate some of the financial pressure on the company. Another InvestingPro Tip points out that ThermoGenesis has been quickly burning through cash, a critical issue for any company, but especially for those in the capital-intensive biotech industry.
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