[USA] ZIVO Bioscience, Inc. (ZIVO) a company dedicated to the development and commercialization of nutritional compounds and bioactive molecules derived from its proprietary algal strains, announces that the Company has successfully negotiated and executed a restructured agreement with private equity firm HEP Investments, LLC, its longtime financing resource, rolling a number of tranches of its Senior Secured Convertible Promissory Note with different maturity dates into a single $13 million instrument with a single maturity date.
The existing financing instrument remains capped at $17.5 million, leaving the Company with the ability to access an additional $4.5 million in short-term funding, subject to the approval of HEP Investments.
The restructured agreement extends the maturity date to September 30, 2018, monthly installments of interest only beginning on July 1, 2017 and continuing on the first day of each month thereafter, and provides for a conversion of the Convertible Promissory Note into the Company’s restricted common stock at $.10 per share.
“We truly appreciate the long-term commitment and vision demonstrated by HEP Investments and its management. This restructuring removes nearly $8 million from short-term liabilities and positively affects the balance sheet,” states Philip M. Rice II, Chief Financial Officer and acting Board Chair.
HEP Investments, LLC a Michigan private equity firm, has provided intermittent funding to ZIVO since late 2011, when the Company shed its supplement production business and revamped its business model to further develop and monetize the intellectual property embodied in its proprietary algal cultures and high-value extracts. In 2012, the Company began to validate and characterize the bioactive compounds present in its benchmark algae strain, as well as conduct a wide range of studies to substantiate the nutritional and safety claims of its algal biomass for humans and animal consumption, a process which continues to this day.
Recently, the Company developed an enhanced protein drink concept, received its fourth US patent for healthy cholesterol balance, began a collaboration with animal nutrition innovator NutriQuest, LLC and executed a biomass production agreement with Synthetic Genomics, Inc.
The Company has issued an 8-K filing to further define the new debt structure.
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