Propanc Health Group Corp (OTCMKTS:PPCH) nosedived excessively on Thursday after it announced the intentions of repaying its convertible notes. The company released a press note stating that it will repay a series of outstanding convertible notes that are pending for conversion in May and June.
Repayment of outstanding debt
The company’s CEO, James Nathanielsz tried to console the apprehensions surrounding the company’s massive share dilution. He said that the market is full of speculations about the methods of Propanc Health Group Corp (OTCMKTS:PPCH)’s source of funding.
But, he reassured shareholders by informing them that the company has identified a number of investors, who have extended their assistance in the repayment of outstanding debt. Amid such assurances, the company failed to give any specific information with respect to which convertible notes it is planning to repay. Nathanielsz reiterated the commitment of containing dilution through finding a balance with capital needs.
Share dilution and financial position
Other than this, Propanc Health Group Corp (OTCMKTS:PPCH) addressed the concerns raised in several reports pertaining to its outstanding $950,000 debt financing through stock. The company clarified that it has terminated the arrangement with the lender and is working on paying the aged payables through its own funding sources.
The press release from the company comes at a time when several reports have questioned the sustainability of the company based on its massive share dilution strategy and uninspiring financial standing. As per the latest financial report, Propanc Health Group Corp (OTCMKTS:PPCH) cash balance stands at $14,000 while it has zero revenue. The net loss of $345,000 is steep and fuels doubt about the company’s turnaround.
The stock of Propanc Health Group Corp (OTCMKTS:PPCH) fell enormously by 42.30% to $0.0491 on Thursday, reflecting an average trade volume of 28.27 million shares. The company’s inside story is due to feature in NY Times this Sunday.