Wellgistics Health converts debt to shares, CEO commits to hold

TAMPA, FLORIDA - Wellgistics Health, Inc. (NASDAQ:WGRX), a healthcare technology and pharmaceutical services holding company with a market capitalization of approximately $199 million and current share price of $3.83, has announced the conversion of a significant debt into company shares. The move involves $1.5 million of debt owed to a seller entity under the control of Brian Norton, the firm’s CEO, which was due by June 14, 2025. This debt has now been transformed into 333,333 shares of common stock at the initial public offering price of $4.50 per share.

This strategic decision underscores Norton’s confidence in the company’s direction and his dedication to fostering long-term shareholder value, despite current challenges including a weak gross profit margin of 9.75% and a concerning current ratio of 0.4. In a gesture that further highlights his commitment, the shares issued to Norton are bound by a 12-month lock-up agreement, restricting their sale or transfer with limited exceptions. According to InvestingPro analysis, the company currently appears overvalued compared to its Fair Value.

Norton expressed his optimism about the company’s future, stating, "This conversion is a public statement of my unwavering belief in our team, our mission, and the transformative impact we will have on the future of healthcare."

Wellgistics Health aims to create a micro health ecosystem through its portfolio of companies, which includes a technology platform, pharmacy, and wholesale operations. The company is focused on enhancing patient care and providing integrated solutions for pharmacies, healthcare providers, pharmaceutical manufacturers, and payors. By leveraging the synergies of its business segments, Wellgistics Health seeks to address access, care coordination, dispensing, delivery, and clinical management of pharmaceutical products.

The information for this report is based on a press release statement. The press release also contains forward-looking statements regarding the company’s plans and performance, which are not guarantees of future results and are subject to risks and uncertainties. Investors are advised to consider these factors and review additional disclosures made in the company’s filings with the SEC. For a deeper analysis of WGRX’s financial health and additional insights, InvestingPro subscribers have access to over 30 financial metrics and exclusive ProTips highlighting key investment considerations.

In other recent news, Wellgistics Health, Inc. has announced its acquisition of Peek Healthcare Technologies, Inc. This move aims to enhance Wellgistics Health’s digital healthcare ecosystem by integrating Peek’s platform, which provides real-time prescription pricing transparency. This acquisition is expected to expand Wellgistics Health’s offerings, potentially reducing prescription costs for stakeholders and providing a comprehensive suite of solutions for pharmaceutical manufacturers. Additionally, Peek will continue to operate as a wholly-owned subsidiary, retaining its brand identity while benefiting from expanded resources and strategic relationships.

In another development, Wellgistics Health has partnered with Protega Pharmaceuticals Inc. to distribute ROXYBOND™, the only FDA-approved abuse-deterrent immediate-release opioid medication in the U.S. This partnership focuses on enhancing pharmacist education on abuse-deterrent pain management options and improving patient access to ROXYBOND™, particularly in underserved and rural areas. The collaboration aims to provide educational resources to pharmacists, incorporating FDA regulations and best practices in responsible opioid dispensing. This strategic partnership underscores Wellgistics Health’s commitment to regulatory integrity and patient safety.

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