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SALT LAKE CITY - TruGolf Holdings, Inc. (NASDAQ: TRUG), a $10.3 million market cap company generating $21.86 million in annual revenue from golf simulation technology, has initiated a strategic financial restructuring by converting all its outstanding convertible notes into Series A Preferred Stock. According to InvestingPro data, the company currently holds more cash than debt on its balance sheet, though it’s been quickly burning through its cash reserves. The move, announced today, also involves the exchange of common stock warrants for a mix of Series A Preferred Stock and additional purchase warrants. This could potentially bring $15.1 million in gross proceeds to TruGolf if the investors choose to exercise their new warrants.
The company’s founders are also participating in the restructuring by converting dividends owed to them into a mix of Class A and Class B common stock. As a result of these agreements, TruGolf will eliminate roughly $9.3 million in debt, a step toward improving its capital structure and complying with NASDAQ’s continued listing standards. The restructuring comes as the stock has experienced significant volatility, with InvestingPro showing a 27.8% gain in the past week despite a concerning 80.8% decline over the past year.
The conversion of the convertible notes and preferred stock is contingent on several conditions, including shareholder approval, which the company plans to seek at a future date. Detailed information about these transactions has been disclosed in the Form 8-K filed by TruGolf on April 23, 2025.
TruGolf’s decision to restructure its financial obligations is designed to align with NASDAQ’s listing requirements. However, the company cautions that forward-looking statements included in the announcement, such as the completion of the note exchange and compliance with listing requirements, are subject to risks and uncertainties that may cause actual results to differ materially from those projected.
Investors and stakeholders can find more information about the risks involved in the company’s filings with the SEC, which outline potential factors that could influence TruGolf’s financial performance.
This strategic move is part of TruGolf’s broader mission to make golf more accessible through technology, as the company continues to innovate in the indoor golf space with products like E6 CONNECT, an e-sports platform for golfers. While the company maintains a healthy gross profit margin of 63.5%, InvestingPro analysis reveals 15+ additional insights about TruGolf’s financial health and future prospects, essential for investors monitoring this transformation. Unlock the complete analysis and Fair Value estimate with an InvestingPro subscription.
The information in this article is based on a press release statement from TruGolf Holdings, Inc.
In other recent news, TruGolf Holdings, Inc. has announced several significant developments. The company has entered into Exchange Agreements to convert outstanding senior convertible notes and warrants into Series A preferred stock, aiming to streamline financial obligations and stabilize its equity structure. Concurrently, TruGolf converted approximately $3.9 million in outstanding notes payable into shares of its Class B common stock and common stock. Additionally, the company faces a potential delisting from the Nasdaq Stock Market due to not meeting the required stockholders’ equity threshold of $10 million. TruGolf plans to appeal this decision, which will temporarily delay the delisting process.
In a separate announcement, TruGolf Links Franchising, LLC, a subsidiary of TruGolf Holdings, has partnered with Knoxville entrepreneur John Young to develop 40 new indoor golf centers across Tennessee. This expansion will commence with a flagship center in Knoxville, featuring advanced golf simulators and upscale amenities. These recent developments highlight TruGolf’s strategic efforts to strengthen its financial position and expand its market presence.
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