Ocumetics Technology Corp. (TSXV: OTC) (OTCQB: OTCFF) (FRA: 2QBO) announced that debentureholders have converted $1.4 million of principal into common shares at $0.32 per share, resulting in the issuance of 4,375,000 common shares. This conversion represents a 35% reduction in the company's outstanding debenture principal, which previously stood at $4 million.
The move is expected to strengthen Ocumetics' balance sheet as it advances toward key milestones in its ongoing patient study program. The conversion of debt into equity reduces ongoing interest costs and aligns investor interests with the company's clinical development objectives. This financial restructuring comes at a critical time as Ocumetics prepares for its planned Investigational Device Exemption (IDE) submission to the U.S. Food and Drug Administration.
Dean Burns, President and CEO of Ocumetics, commented: "These debenture conversions reflect the confidence our investors and debenture holders continue to show in Ocumetics and our long-term vision. 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 company is currently in the first-in-human early feasibility study phase for its dynamic intraocular lens technology. This lens is designed to fit within the natural lens compartment of the eye and use the eye's natural muscle activity to shift focus from distance to near, potentially eliminating the need for corrective lenses. If successful, the technology could transform the field of ophthalmology.
Ocumetics' technology platform aims to provide clear vision at all distances without glasses or contact lenses, with no perceptible time lag. The company's progress toward regulatory milestones, including the IDE submission, is crucial for advancing this technology toward commercialization.
The debt conversion significantly improves the company's financial flexibility, reducing its debt burden and interest expenses. This positions Ocumetics to focus resources on clinical development and regulatory processes. The company continues to actively manage its investments and stakeholder relationships as it approaches these critical milestones.
For further information, interested parties can contact David Burwell, Director of Investor Relations, at dave.burwell@ocumetics.com or (403) 410-7907.
This news release contains forward-looking statements under applicable Canadian securities legislation. These statements are based on estimates and assumptions considered reasonable but are subject to risks and uncertainties that could cause actual results to differ materially. Readers should not place undue reliance on forward-looking statements. The company disclaims any obligation to update these statements except as required by law.
