Advanced Medical Isotope Corp. (OTCMKTS:ADMD) a company actively involved in development of brachytherapy devices issued an update on its underway operations and future plans. It intends to simplify the existing capital structure and eliminate unwanted and toxic debt from its balance sheet.
Advanced Medical released an update in November and December related to an error made during conversion of convertible debts and its exercise of warrants. There was a significant error while computing number of ADMD common shares issued against conversion of convertible debts and exercising warrants. The miscalculation resulted in release of surplus shares. The erroneous calculation happened as the process was applied below the conversion price of $0.001 per share. Due to wrong price, additional shares were released in the process.
The future measures
Now when the transfer agency has released additional shares, the company needs to find out ways to reverse the problem. As per the report presented, the company has planned a set of solutions to solve the problem and help meet the compliance. The problem is reported to holders of debt and warrants. Advanced Medical has designed two set of solutions, first to settle the excess shares for future transactions, or get the shares back to meet defined considerations.
The company stated that after the remedial actions are taken, the changes will be visible in the balance sheet. It will help Advanced Medical to reduce a large portion of convertible debt close to $800,000 and a significant part of outstanding warrants from its books. The changes will be recorded in 2Q of 10-Q filing.
On Friday’s trading session, the stock price of ADMD surged more than 4% to close the trading session at $0.00480. The gain came at a share volume of 18.86 compared to average share volume of 53.29 million. The market capitalization stands at 8.84 million.