Rennova Health, Inc. (NASDAQ:RNVA) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
As previously announced, on March 31, 2016 Rennova Health, Inc. (the “Company”) entered into an agreement to sell certain disputed accounts receivable. The Company received $5,000,000 in proceeds. Under the agreement, as subsequently amended, the Company was required to make payment to the counterparty by May 30, 2018. Christopher Diamantis, a director of the Company, guaranteed the Company’s obligation. The Company did not make the payment by May 30, 2018 and the counterparty commenced an arbitration proceeding against the Company and Mr. Diamantis.
On March 31, 2019, the Company, Mr. Diamantis and the counterparty entered into a settlement agreement in connection with the arbitration. The Company and Mr. Diamantis agreed to pay the counterparty $2,000,000 on or before April 5, 2019 and an additional $7,694,685 plus interest at 10% per annum on or before May 20, 2019. To the extent that Mr. Diamantis makes any of these payments on behalf of the Company, the Company is obligated to repay him. In the event that these payments are not timely made, the counterparty will be owed $11,997,391 (less any payments actually made). To date, the Company has not recovered any proceeds from the disputed accounts receivable.
Item 8.01 Other Events.
As a result of conversions and exercises of certain of the Company’s securities, as of April 3, 2019 the Company had 3,668,882,657 shares of common stock issued and outstanding.
About Rennova Health, Inc. (NASDAQ:RNVA)
Rennova Health, Inc. (Rennova), formerly CollabRx, Inc., is a provider of diagnostics and supportive software solutions to healthcare providers. The Company operates in three segments: clinical laboratory operations, supportive software solutions, and decision support and informatics operations. The Company is a healthcare enterprise that delivers products and services, including laboratory diagnostics, healthcare technology solutions, and revenue cycle management and intends to provide financial services, to medical providers. Rennova’s principal line of business is clinical laboratory blood and urine testing services. It is also engaged in the provision of urine drug toxicology testing to physicians, clinics and rehabilitation facilities in the United States. Its clinical laboratories include Biohealth Medical Laboratory, Inc.; Alethea Laboratories, Inc.; International Technologies, LLC; EPIC Reference Labs, Inc., and Epinex Diagnostics Laboratories, Inc.
