Electromedical Announces $1.36M Net Proceeds from Building Sale to Fund WellnessPro Infinity™ Launch and Convertible Note Retirement
SCOTTSDALE, Ariz., March 22, 2023 /PRNewswire/ — Electromedical Technologies, Inc. (OTCQB: EMED) (“Electromedical” or the “Company”), a pioneer in the development and production of bioelectronic devices designed to relieve chronic, intractable, and acute pain through frequency and electro-modulation, is very pleased to announce the completion of the sale of a building owned by the Company in Scottsdale, AZ.
The transaction closed on March 15, 2023, for a total sale price of $2 million, of which the Company netted $1,363,817.64 in total cash proceeds after payment of mortgage and expenses related to the sale.
Management notes that the sale of the building will not interrupt operations as the Company has already leased back the space on favorable terms.
“This cash infusion will position the Company and our shareholders on very firm ground as we prepare to launch the WellnessPro Infinity™, our next-gen market leading flagship device,” stated CEO, Matthew Wolfson. “We will now be able to aggressively remove dilution risk as well as fully fund pre-production and production activities into the new product launch in Q3.”
The Company plans to deploy capital from the building sale to pay off convertible notes to expel dilution risk as a first step. Remaining funds will be used to pay for development of molds for the WellnessPro Infinity™ device as well as the production of new units to fulfill initial orders.
Wolfson continued, “This capital covers all overhead and growth funding needs through the end of Q2. That will lead us right up to our presale roll-out in Q3 and the beginning of cash generation from sales of new units. We look forward to being cashflow positive and reliant on growth capital from operations later this year.”
Management anticipates presales of the WellnessPro Infinity™ device to pick up in early Q3, with many existing customers expected to upgrade to the new next-generation device. The Company will be rolling out an exchange program whereby existing customers will be able to exchange their old units for a credit toward the purchase of a new WellnessPro Infinity™ unit.
Based on its own internal analysis, the Company anticipates at least $2 million in estimated revenues from this presale program in Q2-Q3 2023. At that point, the Company will be positioned to fund future growth through cash from operations.
About Electromedical Technologies
Headquartered in Scottsdale, Arizona, Electromedical Technologies, Inc. is a commercial stage, FDA cleared, bioelectronic medical device manufacturing company initially focused on the treatment of various chronic, acute, intractable, and post-operative pain conditions. Through University collaboration agreements, the Company is working to develop a comprehensive research program in defining the effects of electro-modulation on the human body. By studying the impacts of electrical fields in cell signaling and effects on virus assembly and immune responses, the Company’s goal is to reduce pain and improve overall human wellbeing. The Company’s current FDA cleared product indications are for chronic acute post traumatic and post-operative, intractable pain relief.
For more information, please visit www.electromedtech.com
Note: Nonhuman preliminary studies that we are planning to start in the near future and their applications are not related to our current product in any way and are currently not cleared in the US.
Safe Harbor Statement
This release contains forward-looking statements that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although we believe that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, we can give no assurance or guarantee that such expectations and assumptions will prove to have been correct. Forward-looking statements are generally identifiable by the use of words like “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including but not limited to: adverse economic conditions, competition, adverse federal, state and local government regulation, international governmental regulation, inadequate capital, inability to carry out research, development and commercialization plans, loss or retirement of key executives and other specific risks. To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward- looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.
Corporate Contact:
Electromedical Technologies, Inc. Tel: 1.888.880.7888
Email: ir@electromedtech.com
https://electromedtech.com
Public Relations:
EDM Media, LLC
https://edm.media
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SOURCE Electromedical Technologies, Inc.
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