Genesis Holdings, Inc. (OTCID: GNIS) announced the completion of a series of Partial Debt Exchange Agreements with substantially all holders of its outstanding convertible promissory notes, converting two-thirds of each holder's outstanding balance into shares of newly designated Series D Preferred Stock. This marks the finalization of Phase I of the balance sheet restructuring initiative first announced in May 2026.
The restructuring represents a significant step in capitalizing the Company's legacy debt and repositioning its capital structure ahead of the next phase of its growth strategy. According to Oscar Brito, CEO of Genesis Holdings, the exchange fundamentally cleans up the balance sheet by capitalizing a substantial majority of outstanding convertible debt into preferred equity. Importantly, the conversion eliminates conversion discounts, price-based kickers, and other dilutive features that came with the legacy convertible notes, which materially reduces the go-forward cost of capital and removes a significant overhang for shareholders.
As a result of the exchange, the Company's pro forma balance sheet as of June 30, 2026 reflects total stockholders' equity of approximately $901,550, compared to a stockholders' deficit as of December 31, 2025 - a swing of roughly $3.0 million driven primarily by the capitalization of convertible debt into Series D Preferred Stock. Total liabilities were reduced to approximately $42,745, from convertible debt and other current liabilities previously carried on the Company's balance sheet.
The restructuring follows the strategic partnership between Travaleo, the Company's wholly owned digital investment platform, and Aurami Capital, announced in April 2026. Under that partnership, Genesis and Aurami Capital have been working together - including with established manager relationships in Mexico - to bring branded luxury real estate investment opportunities to market through structured, digitally structured fund offerings.
Although no assurance can be given, the Company is looking to launch its first two funds under the Travaleo / Aurami Capital partnership within the next 45 days. Genesis believes that having substantially completed its balance sheet restructuring ahead of these anticipated launches will allow the Company and its partners to approach investors, including through established relationships with managers in Mexico, from a stronger financial position.
For more information about the partners, visit Aurami Capital, Miami Real Investment, Travaleo, and Genesis Holdings.
