Zivo Bioscience, Inc., a Nevada-based biotech company, has entered into agreements to restructure its existing debt with three creditors. The transaction involved the issuance of unsecured promissory notes totaling approximately $277,254.38.
On Monday, the company signed separate Debt Settlement Agreements with Howard Shapiro, Merger Masters Pension Fund, and Financial Trading Consultants Pension Fund. According to the agreements, the creditors accepted the promissory notes in exchange for settling the outstanding debts.
The notes issued to Howard Shapiro, Merger Masters Pension Fund, and Financial Trading Consultants Pension Fund are in the amounts of $185,497.12, $40,331.51, and $51,425.75, respectively.
These notes will be repaid over 24 months, starting on November 30, 2024, with a nominal interest rate of 1.0% per annum. The company has the flexibility to prepay the principal balance at any time without incurring penalties. In the event of default, the creditors have the right to demand immediate payment of the unpaid principal.
The details of the agreements and the notes are outlined in the exhibits attached to the 8-K filing made by Zivo Bioscience with the Securities and Exchange Commission on Friday. The company's Chief Financial Officer, Keith Marchiando, signed the filing, which is based on a press release statement.
In other recent news, Zivo Bioscience, a Nevada-based biotechnology company, has reported the sale of 169,022 shares of its common stock to several accredited investors. The transactions took place between August and October, with shares sold at prices ranging from $8.34 to $16.31, averaging $10.44 per share.
The company's recent SEC filing reveals that sales to related parties accounted for 52,802 shares, sold at prices between $8.34 and $15.96, averaging $9.68 per share.
The sale of equity securities to accredited investors is a typical practice for companies looking to finance their operations without resorting to traditional public offerings.
InvestingPro Insights
Zivo Bioscience's recent debt restructuring efforts align with its current financial position and market performance. According to InvestingPro data, the company has a market capitalization of $76.01 million USD, reflecting its small-cap status in the biotech sector. Despite its size, ZIVO has shown remarkable growth, with a staggering revenue growth of 1364.69% in the last twelve months as of Q2 2024.
InvestingPro Tips highlight that ZIVO is a niche player in its industry and operates with a moderate level of debt, which contextualizes the company's recent debt restructuring move. The tip indicating that short-term obligations exceed liquid assets further underscores the importance of this financial maneuver to improve the company's debt profile.
Investors should note that ZIVO's stock has demonstrated strong performance, with a 1435.71% price total return over the past year. This aligns with the InvestingPro Tip suggesting high returns over the last year and trading near its 52-week high. However, potential investors should be aware that the stock generally trades with high price volatility and that the company is not currently profitable.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for ZIVO, providing a more comprehensive view of the company's financial health and market position.
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