Solar Energy Initiatives, Inc. (OTC: SNRY) announced that Bryan Wilkinson and Derrick Whitehead have agreed to retire the company's only outstanding convertible debt instrument. The 2014 convertible note, with a face value of $135,000, could have converted into as many as 1,350,000,000 shares of common stock. It will be exchanged for a $100,000 non-convertible cash note. This was the only debt on the company's books with conversion rights into equity.
Retiring the note eliminates a significant source of potential future dilution and strengthens the company's capital structure. “This is a meaningful step for SNRY and its shareholders,” said Derrick Whitehead, President and Chief Executive Officer. “Removing this legacy convertible note protects the existing holder base from the risk of substantial dilution and aligns with our commitment to a non-toxic, non-dilutive platform as we execute on acquisitions and growth. Bryan and I worked together to get this done in a way that is fair to the Company and its shareholders.”
Bryan A. Wilkinson, Chief Operating Officer, added: “When we took control of SNRY, protecting shareholders was non-negotiable. Retiring this convertible note into a straightforward cash instrument is consistent with that approach and removes the last piece of potentially dilutive debt. It is a big move that clears the path for the Company’s next phase.” The original note was issued in 2014 for consulting services by a former CEO and was later acquired by 5 Star Consulting LLC, which is controlled by Bryan Wilkinson. No shares have been issued upon conversion of the note to date.
Following the retirement, the company will have no outstanding convertible debt. This action continues SNRY’s stated focus on maintaining a clean capital structure while pursuing operating assets, revenue-generating businesses, and non-dilutive capital under its holding-company and incubator strategy. For more information, visit www.snrystock.com. The original release is available on www.newmediawire.com.
