PURE HOSPITALITY SOL (OTCMKTS:PNOW) stated that the company has taken vital measures to accelerate debt reduction process. The management recorded noteworthy progress in eliminating debt of almost $4 million till to-date in the year. The future plan is to reduce nearly 90% of total debt by year end. Melvin Pereira, the Chief Executive Officer, expressed that reducing debt or paying down it is an investment in ‘yourself.’
The debt reduction or elimination is an indication of where the company actually stands and what it intends to accomplish in the coming period. There is always a need of capital to create a profitable and successful business. However, it doesn’t mean that it should result in massive debt or liability. If it happens, it will ultimately become a burden for the company in long-term, halting future growth. Therefore, Pure Hospitality management decided to accelerate its planned debt reduction measures so as to bring balance in the company.
PURE Hospitality has eliminated more than 30% of total debt, which also covers carry cost and accrued interest. The reduction in debt has been recorded in past six months. The company released huge funds from real estate holdings, which suggests that it possesses ample capital to support the Oveedia development. The measures have yielded positive results for the company and can be witnessed in the traction recorded in OTA progress.
PURE HOSPITALITY SOL (OTCMKTS:PNOW) paid off $2 million of accrued interest and it was one of the main factors to that generated optimism among private tech investors. They are showing investment interest in the future projects. With the debt reduction plans in action, the team believes that a major part of the legacy toxic debt will be eliminated in next six months. Also, these will open way for new form of financing options that will be more viable for the company.