Conversion Labs Pays off All Convertible Debt in Preparation for Growth and Market Expansion in 2020

NEW YORK, March 02, 2020 (GLOBE NEWSWIRE) — Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, has paid off all of its outstanding convertible notes totaling $1.52 million. The notes were paid from the proceeds of a term loan and a direct equity investment by an institutional healthcare investor.
“Eliminating these convertible notes represents a significant milestone for Conversion Labs, as now for the first time in two years we are not encumbered by structured financing,” commented company CEO and chairman, Justin Schreiber. “Since the notes were not converted into shares under the original terms, we were also able to avoid substantial dilution to our shareholders.”“Given our outlook for strong growth this year and the rapidly improving fundamentals of the business,” continued Schreiber, “we’re now in a position where we hopefully can fund our growth from cashflow from operations or from capital sources with a longer-term investment horizon.”Conversion Labs earlier announced it expects net sales of approximately $3.7 million for the fourth quarter of 2019, up 64% over the same year-ago period. For the full year, it expects net sales to increase 47% to about $12.2 million.The company recently reported an annualized revenue run rate of about $18 million based on expectations for the current quarter. Driven primarily by growth in the telemedicine business, the company expects revenue to grow by more than 145% in 2020 and exceed $30 million.”Additional information about the payoff of the convertible notes can be found on the company’s Form 8-K filed with the Securities and Exchange Commission at www.sec.gov or available in the investor relations section of the company’s website at ConversionLabs.com.About Conversion Labs
Conversion Labs, Inc. is a health and wellness focused e-commerce company with a portfolio of online direct-to-consumer brands. The company’s portfolio of brands includes proprietary over-the-counter products and prescription medications. It also provides online, virtual physician consultations to consumers in 49 states. In addition to its healthcare platform, Conversion Labs is the majority shareholder of PDF Simpli, a direct to consumer SaaS business for editing, signing, and sharing PDF documents. To learn more about Conversion Labs, please visit ConversionLabs.com. For more about PDF Simpli, go to pdfsimpli.com.
Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, among other things, statements regarding the offering, the expected gross proceeds, the expected use of proceeds and the expected closing of the offering. Any forward-looking statements contained herein are based on current expectations and are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company’s ability to develop, market and sell its products; the expected benefits and efficacy of the Company’s products; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies. These and other factors are identified and described in more detail in our filings with the SEC, including, our current reports on Form 8-K.
Company Contact:
Juan Manuel Piñeiro Dagnery
CFO
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Conversion Labs Investor & Media Relations Contact:
Ron Both, CMA
Tel (949) 432-7566
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