Ocumetics Technology Corp. (TSXV: OTC) (OTCQB: OTCFF) (FRA: 2QBO) announced that debentureholders have converted $1.4 million of their principal into common shares at $0.32 per share, issuing 4,375,000 common shares. The conversion reduces the Company’s outstanding debenture principal by 35%, from $4 million to $2.6 million.
“These debenture conversions reflect the confidence our investors and debenture holders continue to show in Ocumetics and our long-term vision,” said Dean Burns, President and CEO of Ocumetics. “We are actively managing our investments and stakeholder relationships as we continue to advance our patient study and focus on achieving the next major milestones for the Company.”
The conversion of debt into equity is expected to improve the Company’s financial flexibility and reduce ongoing interest costs while aligning investor interests with the continued advancement of Ocumetics’ technology platform and clinical development objectives. This balance sheet strengthening comes as Ocumetics progresses toward key regulatory milestones, including preparation for its planned Investigational Device Exemption (“IDE”) submission to the U.S. Food and Drug Administration.
Ocumetics is developing a dynamic intraocular lens designed to fit within the eye’s natural lens compartment, potentially eliminating the need for corrective lenses. The lens aims to allow the eye’s natural muscle activity to shift focus from distance to near, providing clear vision at all distances without glasses or contact lenses. The Company is currently in the first-in-human early feasibility study phase.
The reduction in debt and associated interest costs provides Ocumetics with greater financial runway to advance its clinical program. The Company noted that the conversion aligns the interests of debentureholders with equity shareholders, as both groups now share in the potential upside of the Company’s technology development.
For further information, interested parties can contact David Burwell, Director of Investor Relations, at www.ocumetics.com.
This news release contains forward-looking statements subject to risks and uncertainties. Actual results may differ materially from those expressed or implied. Readers should not place undue reliance on forward-looking statements. The Company disclaims any intention to update these statements except as required by law.
