Pressure Biosciences Inc (OTCMKTS:PBIO) is involved in the manufacturing and commercialization of pressure-based instruments which can be used across several industries. Earlier on in the month, the company had come into sharp focus after it announced that its biggest shareholder had agreed to exchange as much as $10 million in senior secured debt into unsecured preferred stock.
The debt includes the convertible promissory notes, the unpaid and accrued interest on the promissory notes that had been issued to the investor since as far back as November 2019 as well as the unpaid and accrued dividends that were not paid on the Series AA convertible preferred stock purchased by the investor from the company since May 2018.
The total debt being converted into unsecured preferred stock represented as much as 50% of the total debt that was owed by Pressure Biosciences to the shareholder. Yesterday, the Chief Executive Officer of the company Richard Schumacher went on an interview and discussed this issue at length.
Schumacher noted that over the course of the past 10 years, the investor had put many million into the company and remained one of the biggest supporters. However, more importantly, it was acknowledged that Pressure Biosciences was currently working on cleaning up its balance sheet and that was something that had been understood by the shareholder as well.
The reason why the company was working on the balance sheet clean-up was because of the fact that it was looking to move away from the OTC and eventually list the stock on a major national exchange.
Schumacher said that since the company was looking to list on either the New York Stock Exchange or the NASDAQ, it was looking to get rid of most of the debt on its balance sheet so that the company’s financials look far more appealing to the exchange.