Healthy Choice Wellness issues shares to settle debt

Healthy Choice Wellness Corp. (NYSE American:HCWC), a grocery retail company incorporated in Delaware with a market capitalization of $8.38 million, has entered into a definitive agreement to exchange outstanding debt for equity. On April 30, 2025, the company reached an agreement with certain debt holders to convert $362,727 of principal debt into 863,636 shares of Class A common stock, priced at $0.42 per share, which was the closing bid price on April 29, 2025. According to InvestingPro data, the company operates with a concerning debt-to-equity ratio of 10.72x.

This transaction is part of the company’s broader strategy to manage its debt obligations under a Credit Agreement dated July 18, 2024. Following this exchange, Healthy Choice Wellness Corp. will have $6,145,452 of unpaid principal remaining under the Credit Agreement. InvestingPro analysis reveals the company’s current ratio of 0.81 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets.

The shares issued in the debt exchange are subject to an exemption from the registration requirements of the Securities Act of 1933, as amended, under Section 3(a)(9) of the Act, which allows for exchanges with existing security holders without additional commission or remuneration.

This financial maneuver is detailed in a form of Exchange Agreement, which is attached as Exhibit 10.1 to the company’s current 8-K report filed with the SEC. The report further states that no new financial accounting standards provided pursuant to Section 13(a) of the Exchange Act will be applied by the emerging growth company.

This news is based on a press release statement and provides a factual summary of Healthy Choice Wellness Corp.’s recent financial transaction.

In other recent news, Healthy Choice Wellness Corp. has finalized a strategic agreement to exchange a portion of its debt for equity. The company converted $500,000 of outstanding principal into 1,136,364 shares of Class A common stock, valuing the shares at $0.44 each. This move is part of Healthy Choice Wellness Corp.’s ongoing efforts to manage its debt obligations more effectively. The transaction was conducted under Section 3(a)(9) of the Securities Act of 1933, which allows for exchanges with existing security holders without requiring registration. Following this equity swap, the company now has $6,508,179 remaining in unpaid principal under its Credit Agreement. This development reflects the company’s strategy to optimize its capital structure and reduce its debt burden. The full details of this transaction have been included in the company’s latest 8-K filing with the SEC.

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