Genesis Holdings, Inc. (OTCID: GNIS) announced it has initiated direct discussions with all holders of its outstanding convertible debt to explore restructuring into long-term preferred equity. The company aims to strengthen its balance sheet, reduce capital costs, and align its capital structure with long-term strategic objectives.
Under the proposed framework, Genesis seeks to convert convertible debt into preferred stock with revised terms that would significantly reduce conversion-related dilution. If successful, the restructuring could place the company in a net positive equity position. Additional discussions include potential lock-up provisions and structured leak-out agreements to promote long-term alignment between the company and its capital partners.
CEO Oscar Brito stated, "We recognize that our capital structure has been a key concern for our common shareholders. We are actively addressing this issue in a thoughtful and proactive manner, with the goal of creating a stronger and more sustainable foundation for the Company." The majority of the existing convertible debt was in place prior to the current management team assuming control.
This restructuring initiative is being undertaken in parallel with the continued execution of the company's broader business strategy, including the anticipated launch of its first branded real estate investment fund in collaboration with Aurami Capital. Genesis expects to announce further details regarding this initiative within the next 45 to 60 days. The company believes that completing a balance sheet restructuring ahead of this launch will position Genesis and its partners to engage investors from a position of strength, while also supporting its medium-term objective of pursuing enhanced market positioning and potential uplisting opportunities.
Recent discussions have reflected a shift in alignment among certain existing convertible debt holders, who have expressed support for the company's strategic direction and progress. Based on initial conversations, some holders have indicated a greater willingness to participate in long-term value creation initiatives, rather than pursuing near-term conversion and liquidation strategies. Brito commented, "We are encouraged by the initial conversations and the alignment we are seeing. While nothing is finalized, we are optimistic about reaching agreements that benefit both the Company and our capital partners."
Genesis Holdings is a publicly traded holding company focused on the development, acquisition, and management of operating businesses and real-asset-related initiatives. The company emphasizes disciplined capital allocation, sound governance practices, and long-term value creation for shareholders. More information is available at https://www.regen.digital/.
Forward-looking statements in this release are subject to risks and uncertainties, including general economic conditions, success of growth initiatives, limited operating history, and failure to close proposed transactions. The company assumes no obligation to update these statements.
