Acting on its words, Propanc Health Group Corp (OTCMKTS:PPCH) announced that it has settled two of its outstanding convertible notes. The company, which is engaged into the development of treatments aimed at cancer, said that it has repaid a portion of its debt in line with its earlier commitment.
As per the press note, the company has repaid a sum of $100,236.50 that was due to KBM Worldwide Inc. The amount paid settles two notes, which were due for the conversion in next 90 days. More importantly, Propanc Health Group Corp (OTCMKTS:PPCH) is also looking forward to closing other outstanding debts that are due to mature after 90 days, so as to lessen the risk of shareholder dilution.
While announcing the development, Propanc Health Group Corp (OTCMKTS:PPCH)’s CEO James Nathanielsz expressed content in the way the company is actively minimizing the share dilution through repayment of its outstanding debt. He added that the company is looking forward to supporting from long-term investors, who are keen on backing the company’s plans to move ahead with its PRP clinical trials. At the same time, Nathanielsz said that the working capital has been employed to good use and the company aims to boost its shareholder base and protect their interests.
What is the concern now?
Though the development is positive by all means, but it failed to gather momentum for Propanc Health Group Corp (OTCMKTS:PPCH), as the stock continued to report fall on the exchange. It seems that the impact of the company’s 8-k form filed on April 13 is still haunting it. At the same time, there has been much of the dilution that has already taken place for the company’s share. Hence, the update left little impression on the stakeholders.
As Propanc Health Group Corp (OTCMKTS:PPCH) is expected to announce its quarterly report this week, the actual position of outstanding shares may come to light. The quarterly report will also unveil the capital lying with the company, which is essential given the nature of business of Propanc that aims to develop therapies to treat cancer. The stock of Propanc Health Group Corp (OTCMKTS:PPCH) shed 2.33% to close at $0.0420 on Friday as average number of traded shares stood at 20.90 million.