Cosmos Holdings Announces Voluntary Conversion of Debt to Equity by the Company’s Senior Lender, Further Enhancing the Balance Sheet
CHICAGO, Aug. 18, 2021 (GLOBE NEWSWIRE) -- Cosmos Holdings, Inc. (“the Company") (OTCQX: COSM), an international pharmaceutical company with a proprietary line of branded and generic pharmaceuticals, nutraceuticals, OTC medications and medical devices, and an extensive, established European Union distribution network, today announced that the Company has entered into a debt exchange agreement with its senior lender (Lender) to further reduce the Company’s debt. Under the terms of the agreement, the Company will issue the Lender 321,300 shares of common stock at $5.00 per share in exchange for the principal amount of debt of EUR $1.35 million (US $1.60 million). An additional EUR $1.00 million of debt (US $1.19 million) will be converted effective upon approval of listing of the Company’s common stock to Nasdaq Capital Market in exchange for 238,000 shares of common stock at $5.00 per share, or at market value upon listing if the price is above $5.00 per share at the time of conversion. With this conversion, the Company has reduced the remaining balance of its senior debt to EU $350,000 (US $414,000).
Greg Siokas, Chief Executive Officer of Cosmos Holdings, stated, “We are pleased to further reduce the Company’s debt, which strengthens our balance sheet and facilitates our goal of uplisting to the Nasdaq Capital Market. It also demonstrates the confidence our lender has in our business development efforts, as we expand our business by adding distributors across Europe, Asia and North America, as well as introducing our new branded pharmaceuticals and nutraceuticals into international markets. We are experiencing significant organic growth, which we expect to accelerate as we layer on our new e-commerce and online global distribution strategy. We look forward to reporting on the Company’s continued development.”
About Cosmos Holdings, Inc.
Cosmos Holdings Inc. is an international pharmaceutical company, with a proprietary line of branded and generic pharmaceuticals, nutraceuticals, OTC medications and medical devices and an extensive, established EU distribution network. The Company identifies, acquires, develops and commercializes products that improve patients' lives and outcomes and has developed a global distribution platform and is currently expanding throughout Europe, Asia and North America. Cosmos Holdings has offices and distribution centers in Thessaloniki, Greece, Athens, Greece and Harlow, UK. More information is available at www.cosmosholdingsinc.com and www.skypremiumlife.com.
With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by, or that otherwise, include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could”, are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed, herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company’s ability to raise sufficient financing to implement its business plan, the impact of the COVID-19 pandemic on the Company’s business, operations and the economy in general, and the Company’s ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward- looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company’s filings with the SEC, which are available at the SEC’s website (www.sec.gov). The Company disclaims any intention or obligation to update, or revise any forward-looking statements, whether as a result of new information, future events or otherwise.