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Interactive Strength Inc. (NASDAQ:TRNR), a manufacturer of electronic and electrical equipment with a market capitalization of $3.34 million and current stock price of $2.11, has entered into a settlement agreement with legal services provider Pillsbury Winthrop Shaw Pittman LLP, according to a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the company’s stock has declined 16.49% year-to-date. The agreement, dated March 5, 2025, addresses a liability of approximately $3.96 million owed to the legal firm.
Under the terms of the settlement, Interactive Strength issued an unsecured promissory note to Pillsbury Winthrop Shaw Pittman LLP for the full amount of the debt. This note carries an interest rate of 12% per annum and is set to mature on October 15, 2025. InvestingPro analysis reveals the company’s current ratio of 0.39 indicates significant liquidity challenges, with short-term obligations exceeding liquid assets.
Additionally, the company disclosed that on March 3, 2025, it had amended the conversion price of a senior secured convertible promissory note held by Woodway USA, Inc., which was originally sold to Treadway Holdings LLC and subsequently transferred to Woodway. The amendment adjusted the conversion price to $2.57 per share, which was the Nasdaq Official Closing Price as of February 28, 2025.
Following this amendment, TR Opportunities II LLC, the current holder of the note after purchasing it from Woodway, converted $1,212,400 of the outstanding principal into 471,750 shares of Interactive Strength’s common stock. This conversion was made under the exemption from the registration requirements of the Securities Act of 1933, contained in Section 3(a)(9), which allows for exchanges with existing holders without the need for a commission.
As a result of these transactions and other previous issuances, as of March 4, 2025, Interactive Strength reported having 6,903,594 shares of common stock outstanding. Despite these challenges, InvestingPro forecasts 15.11% revenue growth for fiscal year 2024. Subscribers can access 13 additional InvestingPro Tips and comprehensive financial metrics to better understand the company’s outlook.
The company’s actions, as detailed in the SEC filing, reflect its ongoing financial management strategies and interactions with its creditors. The information for this article is based on a press release statement.
In other recent news, Interactive Strength Inc. has announced several strategic developments. The company has entered into a definitive agreement to acquire Sportstech Brands Holding GmbH, a German fitness firm, in an all-stock transaction initially valued at $15 million. This acquisition is expected to significantly boost Interactive Strength’s revenue, with projections exceeding $50 million in 2025. Additionally, the company has secured an exclusive distribution agreement for its CLMBR equipment in the United Kingdom (TADAWUL:4280), enhancing its presence in the European fitness market.
Interactive Strength has also made financial adjustments by restructuring its debt through the issuance of new secured promissory notes, totaling approximately $5.38 million. This move aims to provide the company with greater financial flexibility. Furthermore, Interactive Strength has amended the terms of a convertible note with Woodway USA, adjusting the conversion price, which may impact the company’s equity structure. These recent developments reflect Interactive Strength’s ongoing efforts to expand its market reach and stabilize its financial position.
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