Ocumetics Technology Corp. (TSXV: OTC) (OTCQB: OTCFF) announced Monday that debentureholders have converted $1.4 million of principal into common shares at $0.32 per share, issuing 4,375,000 shares in aggregate. The conversion reduces the company's outstanding debenture principal by 35%, from $4 million to $2.6 million.
The move strengthens Ocumetics' balance sheet as it approaches key milestones in its patient study program. The company is developing a dynamic intraocular lens designed to restore natural vision by fitting within the eye's natural lens compartment and using the eye's muscles to shift focus between distances, potentially eliminating the need for corrective lenses.
"These debenture conversions reflect the confidence our investors and debenture holders continue to show in Ocumetics and our long-term vision," said Dean Burns, President and CEO. "We are actively managing our investments and stakeholder relationships as we continue to advance our patient study and focus on achieving the next major milestones for the Company."
The conversion of debt into equity is expected to improve financial flexibility and reduce ongoing interest costs, while aligning investor interests with the company's clinical development objectives. Ocumetics is preparing for an Investigational Device Exemption (IDE) submission to the U.S. Food and Drug Administration, a critical regulatory step for its technology.
The company is currently in the first-in-human early feasibility study phase for its intraocular lens technology. If successful, the lens could transform the field of ophthalmology by providing clear vision at all distances without glasses or contact lenses and without perceptible time lag.
Ocumetics' technology platform has attracted investor support, as evidenced by the voluntary debt conversion. The reduction in debt principal strengthens the company's financial position as it navigates the capital-intensive clinical trial process. The company trades on the TSX Venture Exchange under the symbol OTC, on the OTCQB under OTCFF, and on the Frankfurt Stock Exchange under 2QBO.
Forward-looking statements in the release caution that actual results may differ materially from expectations due to risks including operational matters, access to financing, and regulatory uncertainties. The company disclaims any obligation to update these statements except as required by law.
