Wellgistics Health converts $8.1 million debt to equity to strengthen finances

TAMPA - Wellgistics Health, Inc. (NASDAQ:WGRX) announced Friday its Board of Directors has approved an $8.1 million debt-to-equity conversion, aimed at reducing the company’s short-term debt obligations. The move comes as InvestingPro data shows the company’s current ratio at 0.36, indicating its short-term obligations significantly exceed liquid assets.

The transaction, led by CEO Brian Norton and former minority partners of Wellgistics, LLC, which was acquired by Wellgistics Health in 2024, is expected to improve the company’s financial position by decreasing its debt burden.

According to the company’s statement, the conversion is intended to accelerate cash flow by creating more favorable terms and capital access, while enhancing the pharmaceutical distributor’s ability to acquire products at competitive prices.

"This conversion will make a significant contribution in enabling us to accelerate our business plan," said Wellgistics Health CFO Mark DiSiena in the press release.

Wellgistics Health describes itself as a pharmaceutical distribution company that connects over 6,500 independent pharmacies with more than 200 U.S. manufacturers through its integrated platform offering wholesale distribution and digital prescription routing services.

The company, which trades on the Nasdaq, provides services including eligibility verification, adherence programs, prior authorization, and cash-pay fulfillment as part of its business model.

The debt-to-equity conversion is also expected to support the expansion of the company’s network of independent pharmacies and further development of its technology platform, according to the announcement.

In other recent news, Wellgistics Health, Inc. has made significant strides in its financial and operational strategies. The company announced the appointment of UHY LLP as its new auditor, replacing Suri & Co. This change comes after Suri & Co.’s reports included a note about Wellgistics Health’s ability to continue as a going concern, although no adverse opinions were issued. Additionally, Wellgistics Health has initiated the use of XRP, a blockchain-based digital asset, for its treasury reserves and real-time payments infrastructure. This strategic move is backed by a $50 million Equity Line of Credit and is designed to enhance transaction speed and transparency, while reducing costs. The initiative aims to streamline financial operations across its national healthcare network, benefiting pharmacies, suppliers, and manufacturers. These developments position Wellgistics Health as a pioneer in adopting blockchain technology within the healthcare sector.

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